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(Reuters) Sega's Profit Slumps as Game Prices Fall in N.America

Trevelyon

Member
"TOKYO, Aug 5 (Reuters) - Japanese video game publisher Sega Corp. (7964.T: Quote, Profile, Research) said on Thursday its quarterly profit tumbled 51 percent, hurt by higher costs to open new arcades and price falls in the North American game market.

But Sega, which is scheduled to merge with slot machine maker Sammy Corp (6426.T: Quote, Profile, Research) in October, said that unit sales of video games were better than expected and maintained its forecast that group net profit would fall about 9 percent in the year to March.

Since ending its loss-making Dreamcast game console business in 2001, Sega has shifted its focus to software development but has come up against tough competition in the sports games genre from other developers, notably Electronic Arts Inc (ERTS.O: Quote, Profile, Research) .

Sega, currently owned 22.4 percent by Sammy and known for its popular Sonic the Hedgehog game, said group net profit totalled 932 million yen ($8.40 million) in the three months to June 30, compared with 1.89 billion yen in the same quarter last year. "

http://www.reuters.com/newsArticle.jhtml?type=topNews&storyID=5881828
 

Alcibiades

Member
NFL 2k5 should do really well, plus their older releases are continuing to do very well on GCN, so they probably are going to have a good July/Aug/Sept. quarter...
 

P90

Member
With Sega being so successful as a third party, does that mean Nintendo should follow in Sega's footsteps, like the media pundits have been preaching? <sarcasm>
 

djtiesto

is beloved, despite what anyone might say
With the exception of the Monkeyball games and Panzer Dragoon Orta, SEGA hasn't made a good, original game since the move toward multiple consoles. I miss the days of the Dreamcast, they were at their best/most creative then... Hopefully Phantasy Star Universe will start to turn things in their favor...
 

thorns

Banned
Isn't phantasy star universe another MMORPG? Sega only seems interested in MMORPGS these days sadly..
 

Trevelyon

Member
Well Sega's US schedule for the rest of the year is looking a tad bit thin, really nothing major on the table with exception of maybe Outrun 2, which Microsoft are publishing, the Astroboy titles, ESPN Sports & the Matrix Online.

The Rest:

Otogi 2: Immortal Warrior (Publishing) XBOX
Amazing Island GCN
PSO - Episode I&II PLUS GCN
Puyo Pop Fever GCN
Blood Will Tell PS2
NHL Eastside Manager PC
Headhunter Redemption PS2/XBOX
Sonic Mega Collection PLUS PS2/GCN
Sonic DS (???)
Project Rub (???)

2005
Spikeout: Battle Street XBOX
Sega Superstars PS2/Eye Toy
Virtua Quest GCN/PS2
 

doncale

Banned
Microsoft could get Sega at a bargin if Sammy decides to let go. or MS could just buy em both. make one massive attack on the industry Sammy-SEGA-Microsoft. they'd kill Nintendo can be able to compete with Sony..

nevermind this, just dreamin'
 
Note how the article doesn't say if Sega is profiting in the console publishing business or what. Just 'group profit,' which I think they were making anyway when the DC was losing money.
 

B E N K E

Member
Eastside is doing well in Sweden ;)

Multiformat weeks 28-32
1. Driv3r (PS2)
2. Spider-Man 2 (PS2)
3. Counter-Strike: Condition Zero (PC)
4. Athens 2004 (PS2)
5. NHL Eastside Hockey Manager (PC)
6. Driv3r (Xbox)
7. UEFA Euro 2004 (PS2)
8. Spider-Man 2 (Xbox)
9. The Sims On Holiday (PC)
10. Joint Operations: Typhoon Rising (PC)

But the line-up for the remainder of 2004 is weak.
 

Greekboy

Banned
P90 said:
With Sega being so successful as a third party, does that mean Nintendo should follow in Sega's footsteps, like the media pundits have been preaching? <sarcasm>


Sega never had an empire called the GB/GBA to both build upon, lean on and fall back on.




djtiesto said:
With the exception of the Monkeyball games and Panzer Dragoon Orta, SEGA hasn't made a good, original game since the move toward multiple consoles. I miss the days of the Dreamcast, they were at their best/most creative then... Hopefully Phantasy Star Universe will start to turn things in their favor...


Totally agree.
 

Deg

Banned
Lisa Lashes said:
Sega never had an empire called the GB/GBA to both build upon, lean on and fall back on.

SEGA didnt well anything for a long time actually. Anything Nintendo does that SEGA do, Nintendo do far better in.
 

Greekboy

Banned
Deg said:
SEGA didnt well anything for a long time actually. Anything Nintendo does that SEGA do, Nintendo do far better in.

Precisely why saying Nintendo wouldn't be turning a profit as a third party because Sega might not be makes no sense at all.
 

Deg

Banned
Lisa Lashes said:
Precisely why saying Nintendo wouldn't be turning a profit as a third party because Sega might not be makes no sense at all.

No actually the whole point is that SEGA just dont do well.
 

Greekboy

Banned
Deg said:
No actually the whole point is that SEGA just dont do well.

Ya. Exactly why comparing their third party profits and saying it would typify Nintendo into such a similar foray makes no sense at all. Sega limped into the third party world dirt poor and hurting. Nintendo would walk in with 6 billion plus dollars in the bank.

Apples and oranges.
 

Deg

Banned
Lisa Lashes said:
Ya. Exactly why comparing their third party profits and saying it would typify Nintendo into such a similar foray makes no sense at all. Sega limped into the third party world dirt poor and hurting.

true true.

Nintendo would walk in with 6 billion plus dollars in the bank.

Apples and oranges.

Indeed. Nintendo make profits on all their lines right now.
 

cybamerc

Will start substantiating his hate
Kobun Heat said:
Note how the article doesn't say if Sega is profiting in the console publishing business or what. Just 'group profit,' which I think they were making anyway when the DC was losing money.
No. Also Sega's sales were higher as a 1. party. The reason why they're profitable these days is because of the reorganization under Tetsu Kayama.
 

jarrod

Banned
cybamerc said:
No. Also Sega's sales were higher as a 1. party. The reason why they're profitable these days is because of the reorganization under Tetsu Kayama.
No, they reason they're profitable these days is due to consistant AM sales, which has been their only profitable sector for about the last decade. The consumer division ran at a loss even last year.
 

Deg

Banned
I havent enjoyed SEGA for a long time now. They need to sort themselves out. They used to make great games.
 

cybamerc

Will start substantiating his hate
jarrod said:
No, they reason they're profitable these days is due to consistant AM sales, which has been their only profitable sector for about the last decade. The consumer division ran at a loss even last year.
No they're profitable because of the reorganization. It doesn't matter that the arcade segments are profitable if the results are offset by losses made elsewhere.
 
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