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Sega merger!

cyberbricyberbri MemberFull Members
edited February 2003 in Site & Forum Support
http://www.japantoday.com/e/?content=news&cat=4&id=249381

'Game over' for Sega after Sammy merger


Friday, February 14, 2003 at 09:20 JST
TOKYO ?Sega Corp and Sammy Corp said Thursday they will integrate
business
operations by Oct 1, essentially bringing up the "game over" screen for
Sega which once boasted a global presence as one of the three biggest
video-game makers along with Nintendo Co and Sony Corp.

Sega and Sammy, a major producer of pachinko slot machines, said they are
aiming to eventually create an internationally competitive entertainment
company.

But industry analysts said the deal is effectively a bailout of Sega which
has suffered from dwindling sales of game software and its withdrawal from
the household game console market in 2001 as its Dreamcast lost out to
heavyweight products from Nintendo and Sony.

The two companies said they plan to decide on details of the business
integration by the end of March, including a possible merger.

If the two decide to merge, the president of the new company is expected to
be Sammy President Hajime Satomi, a Sega official said.

The merger allows Sammy to absorb Sega's technological prowess in
developing game software to boost business in commercial-use amusement
equipment, an arena it recently entered.

"With the merger, we will be able to raise our presence in the world
market," Satomi told a joint press conference with Sega President Hideki
Sato.

The two executives said the companies began considering the integration
this year.

Sega also said it has revised downward its earnings forecast for the year
to March 31 mainly due to worse-than-expected software sales for home video
games especially in the United States.

It expects a group net profit of 500 million yen, down from the 5 billion
yen projected Nov 20, on group sales of 195 billion yen, down from the
earlier projected 200 billion yen.

Sega also expects a consolidated pretax profit of 6 billion yen, down from
the earlier projected 9 billion yen.

Sammy posted a net profit of 23.9 billion yen in fiscal 2001 on sales of
164.2 billion yen. (Kyodo News)

Comments

  • Anna Marie PrivitereAnna Marie Privitere Purr RPGamer Staff
    edited February 2003
    I'd question what this has to do with, yaknow, RPGs. Slot machines aren't exactly up there with our usual coverage.

    Generally we don't cover hardware news, and the company mergers we tend to report is those that directly affect RPGs. Though I can't speak for the newsies, I'd guess this is why there's been no story on it.
  • LordBrianLordBrian Member Full Members
    edited February 2003
    Covering this story was discussed, and for the very reasons Paws mentioned it was not posted.
  • cyberbricyberbri Member Full Members
    edited February 2003
    Okay. I guess Sega's not big enough news... wink.gif
  • KamikazeKamikaze Member Full Members
    edited February 2003
    Since we've already stated this is not news worth covering, there is no further reason to beat around the bush.
This discussion has been closed.