Sega rating up on new coin-op megaplant
Arcade division expands - Possible pachinko use remains undisclosed
Look! It's Outrunners!
Sega has seen something of a boost in confidence today, with Standard & Poor's Ratings Services today raising its long-term corporate credit rating on Sega Corp. to BB from B.
According to the firm, this change reflects, “… a substantial improvement in the company's financial performance and debt reduction. The upgrade also incorporates the prospective positive effects of the scheduled integration with major slot-machine company Sammy Corp. The outlook on the long-term rating is positive.”
However, increased confidence in Sega’s operational savvy has been widely accredited to the firm’s announcement that it will open a massive arcade manufacturing facility in Yokohama, the place where they make racing tyres and other cool stuff.
According to the firm, the facility will be ready in the science fiction-sounding year of 2009 and will be erected at a cost of around £200 million. The building itself will be a nine-story affair totalling 63,000 square metres, with research and development units rubbing shoulders with cabinet manufacture and possibly Sega’s head office, all going to plan.
As to the precise use of the facility, well that’s still something of a mystery. Given the imminent consumption of Sega by pachinko giant Sammy, it’s likely that the announcement of the plant, made by Sega albeit under the guise of Sega Sammy Holdings, may have more on its agenda than becoming Super Happy Sega World.
A small leisure complex is also planned, along with a cinema too, how utterly thrilling!
According to the firm, this change reflects, “… a substantial improvement in the company's financial performance and debt reduction. The upgrade also incorporates the prospective positive effects of the scheduled integration with major slot-machine company Sammy Corp. The outlook on the long-term rating is positive.”
However, increased confidence in Sega’s operational savvy has been widely accredited to the firm’s announcement that it will open a massive arcade manufacturing facility in Yokohama, the place where they make racing tyres and other cool stuff.
According to the firm, the facility will be ready in the science fiction-sounding year of 2009 and will be erected at a cost of around £200 million. The building itself will be a nine-story affair totalling 63,000 square metres, with research and development units rubbing shoulders with cabinet manufacture and possibly Sega’s head office, all going to plan.
As to the precise use of the facility, well that’s still something of a mystery. Given the imminent consumption of Sega by pachinko giant Sammy, it’s likely that the announcement of the plant, made by Sega albeit under the guise of Sega Sammy Holdings, may have more on its agenda than becoming Super Happy Sega World.
A small leisure complex is also planned, along with a cinema too, how utterly thrilling!
Companies:
Sega Sammy Holdings
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Comments
Joji 21 Sep 2004 14:00
1/4
Good to see Sega Sammy crawling out of debt after so long. I hope we see more arcade home conversions of some of their old hits as a result of this.
Still kicing myself over Outrun and Sega Rally 2005.
Still kicing myself over Outrun and Sega Rally 2005.
NiktheGreek 21 Sep 2004 16:49
2/4
Interesting, but I do wonder if it's wise given the general decline of the arcade market. Well, if anyone can give us the best in arcade gaming, it's Sega.
I miss having a company in the console business that was able to produce first-party arcade ports...
I miss having a company in the console business that was able to produce first-party arcade ports...
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Kaxxx 22 Sep 2004 06:42
3/4
I still personally believe, maybe misguidedly, that Sega will make a return to the home console market. The Dreamcast was the best console i have ever owned.
Hopefully if they can return to be a good profit maker then the Sammy side of the company may well see the advantages to re-entering the market.
For the moment however im glad to see that development continues as it was looking bad for a while there.
Hopefully if they can return to be a good profit maker then the Sammy side of the company may well see the advantages to re-entering the market.
For the moment however im glad to see that development continues as it was looking bad for a while there.
NiktheGreek 22 Sep 2004 14:42
4/4
I personally hope that if they do enter the console race again, it won't be for a long time yet. The name is too damaged at this point. I'd love to see it happen (that link in my sig is my personal site), it just doesn't make business sense. For now, I'm happy to import Naomi conversions on DC, and hope for some from the Atomiswave board in the future.
You're right though, Sega's future looked decidedly shaky for a while. I can't understand the opposition to Sammy's involvement given that the money they bring to the company provides security, and they appear to hold the Sega name and development ethos in high regard (at least high enough to allow both to continue on).
You're right though, Sega's future looked decidedly shaky for a while. I can't understand the opposition to Sammy's involvement given that the money they bring to the company provides security, and they appear to hold the Sega name and development ethos in high regard (at least high enough to allow both to continue on).