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[Jonnyram]

This PDF gives a bit more info than the Reuters release:
http://www.segasammy.co.jp/english/pdf/release/notice_080208_sega_e.pdf

They've already shut down 110 amusement facilities in the last year.
They are looking to shed 400 of their current ~3500 workforce.
Not just amusements, consumer software too.

This is a lot bigger than anyone in this thread seems to realise. And Sega themselves have been losing money, not just Sammy. As the Reuters article suggests, amusement arcades have had less visitors since the Wii became popular. Maybe we can blame Nintendo for killing Sega again :/

 

[Aeris130]

Quick, announce Shenmue

Spoiler

pachinko densetsu vol.

3!

 

[My6cats]

Boo!

Well if I don't sell the Dreamcast, and games. How else I am I going to afford a PS3. I still play the Ps2, X-box and x-box 360.

 

[Borys]

So much fanboys wanting Nintendo/Microsoft to buy Sega :|

I hate Xbox but Microsoft is the only company that could breathe a new life into SEGA. They have the money and time to do this that no other company has, see Microsoft financing of every Rare bomb since they bought them.

 

[Maztorre]

If they're cutting 400 jobs they should ditch Sonic Team and basically all that is left of their consumer software division aside from Nagoshi and his team. We're seeing time and again that Sega is having more success licensing Sonic to actual competent developers these days (Sonic RPG/Smash Bros/Sega Superstar Tennis), instead of throwing money at shit like Sonic 2006 and NiGHTS 2. Keep M2 (Sega Ages) and the arcade divisions around as well.

Basically everyone that made Sonic Team a real success is gone. Sega Europe/Sumo Digital have already treated Sega's brands better with their work on Outrun, Sega Rally and now Sega Tennis than Sega have done for the last 7 or 8 years.

Frankly the Japanese management seem to be holding Sega Europe/Sega America back instead of helping. Where are the Model 2/Model 3 emulators? Why are we only seeing Rez up for download instead of a huge number of Saturn/Dreamcast titles? Where the fuck are all the franchises pre-Sammy Sega spent 15 years building up?

 

[My6cats]

Sega ages stuff, make the good stuff downloadable and i'll pay.

I agree. I would love to have all those Sega Ages on the American PS2 or XBLA/PSN.

 

[Chao]

this is Ironically announced when I am sselling my Dreamcast games and sytem on E-bay. I used to be a Sega fan, but I have moved on.

That's weak.

 

[Kurosaki Ichigo]

Bring us Ryu ga Gotoku 2 quickly please Sega ;_;

1up better not be fucking us with that story...

 

[Defuser]

I hate Xbox but Microsoft is the only company that could breathe a new life into SEGA. They have the money and time to do this that no other company has, see Microsoft financing of every Rare bomb since they bought them.

Buying out Sega is as good as killing Sega since Japanese don't buy 360 hence low sales,their next gen efforts so far in the west is kinda crap.Microsoft already have Rare that make bomba games which sucking out cash,they don't need another 'Rare'. It's best for Sega to be third party.

 

[Jonnyram]

Buying out Sega is as good as killing Sega since Japanese don't buy 360 hence low sales,their next gen efforts so far in the west is kinda crap.Microsoft already have Rare that make bomba games which sucking out cash,they don't need another 'Rare'. It's best for Sega to be third party.

Japanese didn't buy Megadrive, Saturn and Dreamcast. That's why Sega died. What Sega needs is funding.

 

[jarrod]

I'm all for a Microsoft buyout if it means I get Oshima made Sonic and Futatsugi made Panzer again. Do it to it MGS!

 

[RyuHayate]

I know I'm stating the obvious, but SEGA has been in a rut for years now.

Hopefully this will wake them up and help them realize that they've got so much valuable IP that can be used to create a AAA title and grant all of their development teams a sufficient period to produce one. If they can't do that, then they should collaborate with other developers capable of doing it for them (like BioWare's work on the Sonic RPG).

 

[TJ Spyke]

Japanese didn't buy Megadrive, Saturn and Dreamcast. That's why Sega died. What Sega needs is funding.

Actually, Saturn did quite well in Japan. It even out continued to outsell the PlayStation until 1998. This is why Sega of Japan basically forced Sega of America to drop support for the Genesis (which bombed in Japan but was still doing very well in North America) and put their whole weight behind Saturn, even though NPF numbers showed that sales of 32-bit games made up something like 17% of game sales in 1995.

I think Microsoft buying Sega would be terrible. It would mean the end of Sega games on any system except Xbox 360 (duh), PC, and the DS (since MS doesn't seem to mind their IP's being on Nintendo handhelds).

 

[eve241]

Everyone likes to bash Sega. Have some respect for what they have done in the past. They are in a tough spot but they still managed to deliver the likes of Yakuza, PDO and Condemned.

 

[harSon]

Actually, Saturn did quite well in Japan. It even out continued to outsell the PlayStation until 1998. This is why Sega of Japan basically forced Sega of America to drop support for the Genesis (which bombed in Japan but was still doing very well in North America) and put their whole weight behind Saturn, even though NPF numbers showed that sales of 32-bit games made up something like 17% of game sales in 1995.

I think Microsoft buying Sega would be terrible. It would mean the end of Sega games on any system except Xbox 360 (duh), PC, and the DS (since MS doesn't seem to mind their IP's being on Nintendo handhelds).

I don't think Sega being confined to a single platform is a bad thing considering the majority of their multiplatform work is complete shit. Their games tend to be a lot better when they are not focusing on every single platform in existence.

 

[Xav]

this is Ironically announced when I am sselling my Dreamcast games and sytem on E-bay. I used to be a Sega fan, but I have moved on.

Well if I don't sell the Dreamcast, and games. How else I am I going to afford a PS3. I still play the Ps2, X-box and x-box 360.

 

[Amir0x]

Totally deserve this for the franchise raping it recently did to NiGHTS.

 

[TJ Spyke]

Sega had some of their best game sales on the GameCube last gen, and Sonic and the Secret Rings (and Mario & Sonic at the Olympic Games) and been pretty good. I don't want any of the console makers to buy Sega, but I would rather Nintendo buy them than Microsoft since it seems a lot of Sega's fans are also Nintendo owners.

 

[Phife Dawg]

This PDF gives a bit more info than the Reuters release:
http://www.segasammy.co.jp/english/pdf/release/notice_080208_sega_e.pdf

They've already shut down 110 amusement facilities in the last year.
They are looking to shed 400 of their current ~3500 workforce.
Not just amusements, consumer software too.

This is a lot bigger than anyone in this thread seems to realise. And Sega themselves have been losing money, not just Sammy. As the Reuters article suggests, amusement arcades have had less visitors since the Wii became popular. Maybe we can blame Nintendo for killing Sega again :/

Thanks. Is the effect of Wii that big? I always got the impression that arcades are dying a slow death anyways. It'll be interesting to see the direction Sega is taking.

Apart from amusement centers I guess the Golden Compass was also pretty desastrous, neither film nor game met the expectations (both quality and sales-wise, even with low expectations for licensed stuff). Though the film failing doesn't affect Sega directly of course.

 

[My6cats]

Japanese didn't buy Megadrive, Saturn and Dreamcast. That's why Sega died. What Sega needs is funding.

They did buy the saturn. it was America who didn't buy the saturn.

 

[Haunted]

Sega Sammy Holdings warned on Friday that it expects to lose 26 billion yen ($242 million) this business year amid slow sales of pachinko machines and said it would cut 400 jobs at its game software unit.

wtf? Fuck you, Sammy.

 

[My6cats]

Everyone likes to bash Sega. Have some respect for what they have done in the past. They are in a tough spot but they still managed to deliver the likes of Yakuza, PDO and Condemned.

Yes, and I still buy there games. I just got Yakuza from Circuit City for $8.95. I may Get a wii just for the Sega games.

 

[My6cats]

LOL at the reaction. Well when your 80 games are in the closet with the system, like my saturn was, it time to move on. Some of the games you cna buy on other systems. If Sega continues with making the type of games they have been making, the Wii could become the Wiicast.

 

[kswiston]

LOL at the reaction. Well when your 80 games are in the closet with the system, like my saturn was, it time to move on. Some of the games you cna buy on other systems. If Sega continues with making the type of games they have been making, the Wii could become the Wiicast.

Unless you grow out of videogames (happens with some people), selling systems is almost never a good idea. Some day down the road you are really going to wish you had some of those games, and will end up paying more to get them back, than you're going to make selling them now.

 

[Pachael]

Everybody bashes Sega because it's justified. They're in no man's land at the moment, and obviously it looks like Suzuki's team should get the chop (New R&D). They haven't done anything over the past few years but try to get Psy-Phi (in some arcades, limited distribution), Shenmue Online (ha, ha, ha, canned), and Sega Race TV (which looks OK but derivative).

I don't blame Sega haters, most of them being former Sega lovers who've hated their own product more as a form of tough love, I remember the crying over JSR's non-sales due to marketing - not even bad publicity helped it! Obviously there are greater pastures these days with the Wii/DS/PS3/X360, which ironically is where the Sega base split up.

Funnily enough, I think Sega's a better publisher and developer these days, what with their European studios producing good stuff (Sports Interactive, Creative Assembly, Sega Racing Studio) and publishing things like, say, Crush. And Chromehounds in the States. Though Golden Axe (Secret Level) doesn't look good, but there's hope, right?!

It's just that Sega has always had their lot in the arcades when people were pulling out (See Capcom, who've gone on to make $$$ in action gaming). So the decline of arcades are affecting Sega and Namco the most, which is why they're (kinda) pointing the finger at the Wii.

So it looks like Sega is doing what Nintendon't. Failure.

 

[Gagaman]

Sega really have the worst luck of any game company I've ever known. They've tried everything in the last few years: reviving old franchises, setting up new studios in the West, buying up studios, publishing movie licensed games: basically everything EA does. The poor sods just seem to lose money no matter what they do.

 

[solid2snake]

Sega really have the worst luck of any game company I've ever known. They've tried everything in the last few years: reviving old franchises, setting up new studios in the West, buying up studios, publishing movie licensed games: basically everything EA does. The poor sods just seem to lose money no matter what they do.

but they don't have any brain training games for DS in their portfolio.

 

[Gagaman]

but they don't have any brain training games for DS in their portfolio.

They don't?

 

[Phife Dawg]

but they don't have any brain training games for DS in their portfolio.

http://www.amazon.de/dp/B00116DZ9A/

 

[solid2snake]

http://www.amazon.de/dp/B00116DZ9A/

blame SEGA, burn their HQ in the tokio Ghetto!

 

[Kittonwy]

Sega really have the worst luck of any game company I've ever known. They've tried everything in the last few years: reviving old franchises, setting up new studios in the West, buying up studios, publishing movie licensed games: basically everything EA does. The poor sods just seem to lose money no matter what they do.

In business you make your own luck, it's all about effective management, something that Sega has never had.

 

[[Nintex]]

Sell Amusement Vision to Nintendo SEGA and give us F-Zero WX, Do it!!

 

[Panajev2001a]

In business you make your own luck, it's all about effective management, something that Sega has never had.

In SEGA's defense they are priceless as a case study in effective business management classes .

 

[Kittonwy]

In SEGA's defense they are priceless as a case study in effective business management classes .

That's true.

 

[ComputerNerd]

Strange how the article blames the Wii for Sega's slowing arcade and gambling units, yet doesn't compliment the Wii regarding Sega's very profitable Wii software sales.

 

[brain_stew]

serves you right SEGA, no Shenmue -> no future for you!

Financial abortions such as Shenmue are precisely the reason why Sega had to be bought by Sammy in the first place. Persuing such dumb business moves is not the way back to profitability.

 

[Hcoregamer00]

I am not shocked.

Sega hasn't been profitable. They go 3rd party and we think they would be the best company ever.

Nope.

They have to deal with the crap that goes with 3rd party, licensing costs, console marketing research, multiple platform development, and all that good stuff. The worst part is that they stopped being the crazy, wacky-jappy Sega we used to love. It is a skeleton of what it used to be, publishing western styled games when Capcom does it far better.

 

[My6cats]

Unless you grow out of videogames (happens with some people), selling systems is almost never a good idea. Some day down the road you are really going to wish you had some of those games, and will end up paying more to get them back, than you're going to make selling them now.

I already went through that some with the Genesis and the Super Nintendo. I traded them in when they had the trade in for the Luanch PS1 at Babbages. I slowly started to miss 2d games. so later I found some online stores that sold Genesis and super Nes games. I regreted it becuase the games were not as fun the 2nd time around, and nostalgia blurred my memories.
I have owned the Saturn with alot of rare games ( Panzer Dragoon saga, Burning Rangers, Radiant silvergun, Guardain Heroes, Saturn bomberman, Sghing force 3 , Dragon Force ,ect...), and I had to sell that to help my family out of debt. Overall I don't miss them. I relizied I can get games just as good now. I have moved past the Nostalgia that many seem to fall into. I can see how many people would want to keep it, and Iam happy thier are others that want it.

 

[My6cats]

People say thier games are awful adter the dremacast. the X-box games were good, and they had Virtua fighters 4 for ps2. They Brought over most of the popular Dreamcast games to the Gamecube, and Monkeyball was really good. It was at the wend of the Generation that Sega started to suck. with games like shinin wisdom, and Virtua quest. BUt now they are better, Besides the Sonic on PS3.360 most of their games have been decent. Sega just has alot bad luck. I was going to say that Japanese games don't sell unless you are Nintendo, Capcom or Square, but that is not why Segas games don't sell as well. It becuase they do alot of arcade type games, and those don't sell these days.

 

[DECK'ARD]

I was going to post "Another Space Channel 5 + Jet Set Radio before you go down the shitter please".

But then I thought about how they'd probably turn out.

And then I thought of NiGHTS.

And PSU.

Sega is practically dead to me these days

 

[Linkup]

Strange how the article blames the Wii for Sega's slowing arcade and gambling units, yet doesn't compliment the Wii regarding Sega's very profitable Wii software sales.

Sega killing themselves, just like they've always done.

 

[ethelred]

Sega had some of their best game sales on the GameCube last gen, and Sonic and the Secret Rings (and Mario & Sonic at the Olympic Games) and been pretty good. I don't want any of the console makers to buy Sega, but I would rather Nintendo buy them than Microsoft since it seems a lot of Sega's fans are also Nintendo owners.

Not really.

 

[ComputerNerd]

Lots of you seem to be misreading the article.

From the numbers in the Reuters article, it's the Sega division that is losing money. Apparently the Sammy division was keeping the Sega division afloat.

The Sammy division is still profitable. Just less profitable than before. However, when the whole company is in the red, something is amiss. That appears to be the result of Segas arcade division, and the retiring packages being offered.

At least from what the article tells us. The Sega division is losing money. They're cutting jobs in the Sega division. Seems logical to me.

 

[jarrod]

Oh, and I'd only be for a Microsoft buyout if they continued making DS games. <3 <3

 

[Flakster99]

I was going to post "Another Space Channel 5 + Jet Set Radio before you go down the shitter please".

But then I thought about how they'd probably turn out.

And then I thought of NiGHTS.

And PSU.

Sega is practically dead to me these days

 

[Deku]

The last oil shock in the 70s hit the amusement industry pretty hard as well. The Japanese economy is slowing again after a fairly weak recovery. Sammy may be in from some tough times and oil isn't going to go down anytime soon.

 

[[Nintex]]

I don't understand why Sammy bought SEGA in the first place. They had no connection to them and the only business that they had that could've been profitable/doable for Sammy were the arcades. SEGA would've been in better shape if another software/game company bought them.

 

[Deku]

I don't understand why Sammy bought SEGA in the first place. They had no connection to them and the only business that they had that could've been profitable/doable for Sammy were the arcades. SEGA would've been in better shape if another software/game company bought them.

That's the mystery of Japanese corporate conglomeration.

 

[Lobster]

I don't understand why Sammy bought SEGA in the first place. They had no connection to them and the only business that they had that could've been profitable/doable for Sammy were the arcades. SEGA would've been in better shape if another software/game company bought them.

Funny that SEGA would be better off alone atm :-\

Are SEGA allowed to buy themselves back or something?

 

[Tyrone Slothrop]

2009 can't come soon enough

hang in there, sega