Sega-Sammy loses money, lays people off
It doesn’t matter how successful Sega is in the software division, they have Sammy to hold them down. However, the joint company expects to lose about $26 billion yen ($242 million dollars) because of slow pachinko machine sales.
Apparently, the pachinko machine industry has been dented by the Wii console. Due to this, Sega had to fire 400 employees (that made roughly 5 percent of its workforce). Shares in Sega-Sammy fell 5.9 percent, the lowest closing price since the merger.
IGN posted this bit of news:
“Due to Sega failing to respond to changing business environment, the operating performance of its core businesses, including the amusement facilities business and domestic consumer business, has not been performing well,” said Hajime Satomi, chairman and CEO.
I find this quote to be puzzling, when recently a research company said that Sega was leading next gen with the most games and Sega has adapted by expanding its Western studios.
I won’t say that Sega has done everything exactly perfect, but I think it’s Sammy that hasn’t responded to the changing business industry. It continues to rely on pachinko machines even though they are declining in popularity. Maybe Sammy should adapt to the changing market and get studios to make games on the Wii?
[Via the forums, Source: Reuters]
Tags: Financial, George, Pachinko, SEGASammyRelated Stories
POSTED IN: News
6 opinions for Sega-Sammy loses money, lays people off
Ryan
Feb 8, 2008 at 6:38 pm
Due to Sega? piss off!
Sammy should cut their losses and sell that pachinko nonsense and focus on video games.
Kyle
Feb 8, 2008 at 8:05 pm
LOL oh man why does IGN have to suck so hard. Seems lately IGn cannot get their facts straight.
And ive said since the beginning: Sega should sever that SegaSammy Holdings. Sure Sammy helped SEGA get its legs back after that very very dark period, but now Sammy needs to realize “oh shi, pachinko machines arent that hot anymore?!”
Kyle
Feb 8, 2008 at 8:06 pm
OH SHI- my apolgoies i did not read that quote all the way through.
My opinion of IGN still stands but i retaract my statement just now.
City Hunter
Feb 9, 2008 at 4:50 am
A joke?
Sammy and pachislots are the reason because the holding lose lots of money, and Sega is responsible?
nike6 (flickr)
Feb 15, 2008 at 12:40 pm
oh god why it has come to this.
most western arcade saloons which survived (yes they are some remaining) are “combo” enterprises:
-billard
-gamble machines (this las vegas style of money games, card games)
-coin loose machines (offering small gifts)
-crane machines (typically, 6 to 10 tries)
-traditional small-screen game cabinets (people like martial arts and war game cabinets, like metal slug)
-large screen games (such as SEGA house of death)
-car racing (far too many machines sometimes)
-money exchange machines
-vending machines for drinks
guess specialized saloons have a higher risk of…bad times.
sometimes the “adult” gambling machines are put into a seperate section, but often, they are mixed, or both things.
in japan…i have seen pictures of saloons exclusively featuring “pachinko”. it it specialization?
why…
there are not news about SEGA is increazing the business?
OK. the people had SEGA in 1980s and 1990s, now 2000s happened…maybe they are just used to content, and will drop it off after a while.
but i do not think of complete closure. new, younger customers will fill the gap (hopefully).
Steve Stilz
Mar 15, 2008 at 6:50 pm
Some good thoughts but you may want to lock it down..
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