Sega Sammy losses bring layoffs, arcade closings
by Kyle Orland 
{ Feb 8th 2008 at 10:40AM }
Life comes at you fast if you're Sega Sammy. Just a couple of years after increased profits had the company rolling in money, the company today announced that it plans to lose a whopping 26 billion yen (approx. $230 million) this fiscal year. Compared to the previous projection of a billion yen profit for the year, the turnaround comes as a bit of a shock.The main culprit behind the downturn seems to be the pachinko side of the business, which saw a predicted 85 percent fall in profits, and arcade sales, which switched from a slight profit last year to a 11.4 billion yen loss this year (damn that popular Wii).
To staunch the bleeding, the company will be offering early retirement to 400 employees and closing 110 unprofitable amusement parks and arcades around Japan. Hard to believe the previous incarnation of this company once held the lion's share of the home video game market.
Reader Comments (Page 1 of 1)
NATO_Duke @ Feb 8th 2008 10:52AM
...but the Wii doesn't give us any pachinko balls when we play it....what ever shall we do now?
Nigeria @ Feb 8th 2008 10:55AM
If it's any consalation to Sega, I plugged in my Saturn two weekends ago and played it for forty-fifty minutes. I don't know how that will contribute to Sega's bottom line but dammit: I'm doing my part. I also brought Nights which was surprisingly good.
LongshotX @ Feb 8th 2008 12:11PM
Get a copy of Radiant Silvergun. A must Play.
LongshotX @ Feb 8th 2008 12:12PM
Get a copy of Radiant Silvergun. A must Play.
WiNG @ Feb 8th 2008 12:31PM
Get a copy of Guardian Heroes, and good luck with not dying playing it.
Nigeria @ Feb 8th 2008 12:34PM
Ebay has the game for £139. Plus, I'd need a chip or a Japanese Saturn.
:(
I want to try Panzer Dragoon Saga. They should really re-release that game, or port it to the Wii using Panzer Dragoon Orta's engine. If it is possible.
Zootittles @ Feb 8th 2008 11:12AM
That's a damn shame.
samfish @ Feb 8th 2008 11:23AM
Now's your chance, Nintendo! Hurry! Swoop in and buy Sega from the Yakuza-owned company! REDEEM THEM!
Zertoss @ Feb 8th 2008 11:34AM
Exactly what I was thinking. Get in there and work your magic to make the House that Sonic Built a money printing machine, Nintendo!
WiNG @ Feb 8th 2008 12:33PM
If Nintendo bought SEGA, there would be an unparalleled golden age of gaming the likes of which have never been seen.
Either that or maybe the next 3D Sonic game would be good.
Zertoss @ Feb 8th 2008 12:37PM
Same thing, right?
ThornedVenom @ Feb 8th 2008 2:11PM
Sega+Nintendo vs. Microsoft and Sony?
Old school vs. Newcomers?
My bet is on old-school. ;P (Too bad the good ol' Atari isn't there anymore)
Burnt Meatloaf @ Feb 9th 2008 6:16AM
Nintendo should do what they do best: buy the company, make it slightly profitable, then sell it to Microsoft at a huge profit, and then laugh while watching it go downhill from there.