Neoseeker : News : Sega's finances not doing so well

Sega's finances not doing so well
Sean Ridgeley - Friday, May 16th, 2008 | 11:04AM (PT) 0 Like


Solution: get back in the console race?

Sega's finances not doing so well Image 1

Since about 2006, and after that unpleasant period of Dreamcast failure, Sega's success has been a mixed bag. Profits go up, profits go down; its 2008 fiscal year say $501 million in losses, $56.3 million for its games division. Some titles do well, other times the company seems to completely lack anything resembling a killer app. Don Reisinger of CNet says drastic times call for drastic measures:

"..in an environment where we're seeing a significant push towards consolidation, the company really only has two options: sell the company to the highest bidder or develop a console."

Well, there you have it.

Of course, there are questions and concerns that arrive with this hypothesis.

One: could the current industry even support four consoles? It seems maybe already too crowded with three. Four? That'd be some kind of record, wouldn't it? I'm no economics expert, but I'm guessing this would make software and hardware cheaper though, due to increased competition, wouldn't it? Would it? Or would Sega fizzle, having the least capital, and being least able to lower prices?

Two: could they make a successful console? Despite the huge misstep with the Saturn (despite some solid and innovative games, the timing and pricing were just all off), the Dreamcast in its own right should've been a successful platform. Personally, I blame that mean old nasty PlayStation 2 for coming along and ruining everything. Just kidding, we all know the PS2 was a great console, right? But it was at least partly responsible for the woeful "death of the Dreamcast." The ol' DC had a solid library of games from the get-go (especially that lovely Soul Calibur), it was the first system to offer online play (I was drooling at the thought of playing Phantasy Star Online at the time), and offered voice chat support as well. What's not to love?

Naturally, if they gave it another go-round, they'd have to really do it right. Reisinger points out three major things to follow (listen up, Sega):

1) Develop forward-thinking hardware very much tied to the online world. Make it the most powerful system and give 'er a Blu-Ray drive.

2) Make friends. Become liked. Repair and develop relationships with retailers and developers. Make lots of third-party deals to make up for selling the console at a loss.

3) Hype the crap out of it, milk the 'return of Sega' thing, but don't rush things, make sure it's done right.

He says a new Sega console would be welcomed by the gaming community with open arms. So, community, what do you say? Can ya, can ya give it another shot?

Source: CNet

Section: Console Games

  • 0 thumbs!
    bruceleethree since Nov 2005 | May 16, 08
    Anyone else get extremely enamored with their Dreamcast "It's thinking" marketing campaign?

    I thought it was so revolutionary and made me believe I'm buying more than just a console. The directing of the commercials and their style were get on their own.

    Anyway, I think Sega had the most talented developers, marketers etc... in the video game industry and I don't understand why they let Dreamcast's short-comming's financially ruin their company goals and sights set on the future of console development.

    Mind boggling.
  • 0 thumbs!
    OmegaFury since Jan 2008 | May 16, 08
    The Dreamcast's collapse was so sudden, I didn't even know what was happening. I would actually be quite interested to see the revival of Sega on the console scene.
  • 0 thumbs!
    chautemoc since Mar 2008 | May 16, 08
    bruce> Yeah, I can relate. It was definitely an interesting thing to see and an interesting time.

    Omega> Same. I just wonder if it'd be actually possible.
  • 0 thumbs!
    VeGiTAX2 since Apr 2001 | May 16, 08
    Odd that there's no mention of the whole Sega/Sammy amusement deal of the past and even prior to that you had Sega releasing their development houses into the wild.

    This isn't 9/9/99, 2K moved on, Bizzare moved on, and many of their own houses merged in on each other without a stable direction to go in or they sold to the higher bidder.
  • 0 thumbs!
    auron586 since Mar 2007 | May 17, 08
    i think it would be intresting to see how a 4th console would change the console "war"

    personally i think sega should work on a NEXT gen console and forget this generation, releasing it before the other companies, like microsofts successful Xbox
  • 0 thumbs!
    DeathMonkey since Sep 2007 | May 17, 08
    I agree with Auron that it if Sega do come back (which I would love to see) they should make a next gen console rather than compete late in this one. I reckon its only another 2 or 3 years before we start hearing about the next gen consoles anyway.
  • 0 thumbs!
    chautemoc since Mar 2008 | May 17, 08
  • 0 thumbs!
    OmegaFury since Jan 2008 | May 17, 08
    I took a small break from my computer, and look what happens- I missed that article
  • 0 thumbs!
    OmegaFury since Jan 2008 | May 17, 08
    Hehehe. That picture is funny. Looks like a pimped out Dreamcast.
  • 0 thumbs!
    chautemoc since Mar 2008 | May 17, 08
    The Neoseeker gods frown upon you today, sire.
  • 0 thumbs!
    | May 17, 08
    Guys r u all crazy???

    SEGA even have not enough money to do their games well on all platforms, and new console development cost a lot of money.
    Saga was always looser and was doing bad moves against their customers in earlier 90th and even now!!! They r gayest lazzy asses in the world.

    Latest Example is IRON MAN, when XBOX 360 and PS3 have superior gfx and pretty good gameplay, pc version have inferior gfx and its crappiest ever port in the world of PS2 version wich is honestly looks like not even like PS2 game but more like PS1 game made in 99 year (they did 100% same gfx game for PSP and PS2, so look like its more PSP port than PS2 port)
    Wtf they was thinkin about? To make "lot" of cash by delivering game to maximum auditory including loosers who still have Riva tnt and pentium 3?
    THEY was LIYING and cheated everyone and was showing 360 screenshots as screenshots of PC version, even on cover of game box you can c 360\ps3 screenshots when actual PC version 10 years behind of it.
    Thats a good subject of lawsuite against SEGA because their cheated customers, so soon if sega will continue acting like that it will lost last money and will be finished!
    Its stupid, they just lost few thousends customers and last respect they have had.

    Shame on sega! True Sonic is dead and there is nothing good remains in sega...
  • 0 thumbs!
    OmegaFury since Jan 2008 | May 18, 08
    @chautemoc

    LAWL
  • 0 thumbs!
    | May 18, 08
    sonic team should be bought out by nintendo, then tasty sonic games will reign out upon all wii owners!
    anyway, sonic is still awesome...he'll never die.

    dreamcast 2...but will it play crysis?
  • 0 thumbs!
    | May 18, 08
    @Voodooman

    I killed thousands of brain cells when I tried reading your paragraph.

    Hi /v/
  • 0 thumbs!
    | May 25, 08
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