Sega beats Profits Forecast

Sega, Sega, Sega, what a strange little company you are.Though you continue to antagonise fans with games masquadering as a progression of a classic series or not releasing much wanted games and bringing out mediocre ones half the time that are bombing in the charts your still managering to generate profits…

iht.com/articles/2005/11/15/ … sxsega.php

Sounds more like Sammy is the one making a profit…

Actually it’s both. The sales are attributed to Sega’s software hits like MUSHI KING,SAKURA TAISEN 5 and the arcade games like LOVE AND BERRY as well as Sammy’s Panchinko games. Panchinko is cheap enough to produce and they get a huge return on them so it’s obvious that would help with the development.

[quote=“D-Unit”]

Sounds more like Sammy is the one making a profit…[/quote]

OH I get so very sick of that view.
I guess strong sales of Musha King inthe the Arcades and inthe Home count for nothing. Never mind the GBA games cost next to nothing to make and is still selling like hot cakes.

The problem is ,TA , that a lot of gamers only judge things on how companies are performing in their own world and never consider anything outside of it(Where pratically Sega is the EA of japan ,now) Also some people can’t accept the fact that Sega has become a big shot again and try to make an excuse to explain that they couldn’t possibly become succesful on their own. Anyone who has looked at the Profit reports in depth knows it’s a combination between Sega and Sammy’s operations. The big boost in profits are mainly due to the AAA titles that was released in the last quarter of this year by Sega’s publishing division. Add the Sammy made games that Sega publishes that have done ok in the Japanese chart THEN add the arcade market with the big hit MUSDHI KING and then Panchinko you will find why every analyst has been saying that Sega will be if not already, the dominant Japanese games producer in the next two years.The merger to those guys always looked good on paper since both companies are the leaders in their chosen fields. Now it has happened SegaSammy is becoming bigger each day.And that means more decent Sega games again.

Sega of course has yet to translate that success to america. Their strategy in employing leading American game developpers to create IP for Sega is a clever idea to see if they finally get a decent foothold in the U.S. market.
We shall see if this plan pays off with how well CONDEMNED performs when it hits the shops next week.

“(Where practically Sega is the EA of japan ,now)”

shudder

Remember that adage be careful what you wish for?

They’re hardly excuses, I just read between the lines. Correct me if I’m wrong, but in the first quarter Sega-Sammy’s video game division lost $18 million, while the total net income consisted of $95.5 million. The article you posted also mentions slowing software sales, and the fact that Sega-Sammy is focusing on their gambling business to offset game-development costs. That said, I haven’t seen any details about Sega’s part in the total first-half income so perhaps you can show me a link to that in depth profit report you mentioned?

I just wish Sega would pick one console and release all their games on it. I can’t get every console out there to follow all the series I like. So I’m stuck missing out on great sega games no matter what I pick… They would get more cash from me if it was easier to get all the games ._.

[quote=“D-Unit”]

They’re hardly excuses, I just read between the lines. Correct me if I’m wrong, but in the first quarter Sega-Sammy’s video game division lost $18 million, while the total net income consisted of $95.5 million. The article you posted also mentions slowing software sales, and the fact that Sega-Sammy is focusing on their gambling business to offset game-development costs. That said, I haven’t seen any details about Sega’s part in the total first-half income so perhaps you can show me a link to that in depth profit report you mentioned?[/quote]

Overall SEGA made a profit, but its consumer dision made a loss , but that was more than offset by another great round of Arcade profits

Sega Sammy Reports $210 Million Profit

TOKYO - Sega Sammy Holdings Inc., a company formed from a merger between a game-maker and a pinball maker, reported a net profit of 25 billion yen ($210 million) for the half-year through September.

Sales for the six-month period ended Sept. 30 totaled 248.6 billion yen ($2 billion), Sega Sammy Holdings Inc. said in a statement.

There were no comparative numbers for the previous year’s fiscal half profit or sales because Sega, which makes Sonic the Hedgehog games, and Sammy, a pinball manufacturer, merged to form Sega Sammy Holdings Inc. in October last year.

But the company did forecast that earnings for the full fiscal year through March would rise 12 percent to 56 billion yen ($470 million) profit on 567 billion yen ($4.8 billion) sales.

That growth projection is based on a combined profit figure of 50.6 billion yen for the two companies for the last fiscal year.

http://news.yahoo.com/s/ap/20051121…an_sega_sammy_1

For those that care

"In the amusement machine sales business, although sales of prize games, including ?UFO Catcher,? experienced a
cyclic downturn in Japan, overall performance was strong thanks to brisk sales of high-value-added products. These
included ?Sangokushi Taisen,? a network-enabled trading card game launched in the previous fiscal year that
remained popular, and ?Star Horse 2 NEW GENERATION? (winner of the Fiscal 2005 Good Design Award), the
latest in the Star Horse series, featuring significant upgrades to a broad spectrum of game features.
As a result, net sales in this segment were ?30,835 million and operating income was ?4,512 million.
《Amusement center operations》
In the amusement center operations business, ?MUSHIKING: the King of Beetles? saw steady increases in
installations and card sales underpinned by its unparalleled popularity. ?Oshare Majo Love and Berry,? which created
a new genre for girl gamers, enjoyed a further boost in popularity. The success of special card game events held in
various regions, mainly during the extended golden-week holiday in May and the summer vacation period, also made
a strong contribution to operating results.
During the first half of the fiscal year ending March 31, 2006, 6 new amusement centers were opened in Japan,
including ?Festival Walk Soga,? while 32 locations were closed, resulting in a total of 451 locations at September 30,
2005.
As a result, net sales in this segment were ?48,559 million, and operating income was ?4,333 million.

《Consumer Business》
In the consumer business, videogame software sales during the fiscal first half totaled 1,540 thousand copies in Japan
and Asia, 1,010 thousand copies in the U.S. and 1,930 thousand copies in Europe. These sales were underpinned by
better-than-forecast record sales of ?The King of Beetle MUSHIKING: Road to Greatest Champion? for Game Boy
Advance. Another strong seller was ?Sakura Taisen V: Saraba Itoshiki Hito yo,? the latest addition to the ?Sakura
Taisen? series of adventure games, which has posted cumulative sales of 3.5 million copies since its debut in 1996.
The latest title in the ?Tsukuro!? series?, ?Pro Yakyu Team wo Tsukuro! 3? was also launched.
The SEGA SAMMY Group also performed well in the toy and mobile phone content fields. As a result, the consumer
business posted net sales of ?28,593 million. However, the segment recorded an operating loss of ?4,332 million as
sales were unable to offset higher R&D expenditures and other upfront costs required mainly to develop videogames
for next-generation videogame consoles."

Thanks TA. Now i hope this settles the matter and stop this Sammy doing better than Sega mythology that is pandering around the internet.

I don’t care anymore,as long as these profits from their kiddie girlie games and panchinko enables Sega to finace a new PANZER DRAGOON RPG,than i would be a very happy Rub Bunnie.

I don’t know how the finances break down (well, I could find out, but am too lazy to even care), but in the end, why does it matter? Who cares which part of the same damn company is doing better, unless you actually work for the company?

I mean, do you care if, say, Jeep is less profitable than Chrysler? They’re part of the same company. I mean heck, all I care about is whether or not the products that any given company provides me are good enough for me to want to buy.

[quote=“Goonboy Panzer”]Thanks TA. Now i hope this settles the matter and stop this Sammy doing better than Sega mythology that is pandering around the internet.

I don’t care anymore,as long as these profits from their kiddie girlie games and panchinko enables Sega to finace a new PANZER DRAGOON RPG,than i would be a very happy Rub Bunnie.[/quote]

Exactly. If the SF NEOs, Shadow the Hedgehogs and Fist of the North Star pachinko machines fund the Rez, Shenmues and PD’s of the future, then long may they continue.

[quote=“Abadd”]I don’t know how the finances break down (well, I could find out, but am too lazy to even care), but in the end, why does it matter? Who cares which part of the same damn company is doing better, unless you actually work for the company?

I mean, do you care if, say, Jeep is less profitable than Chrysler? They’re part of the same company. I mean heck, all I care about is whether or not the products that any given company provides me are good enough for me to want to buy.[/quote]

It means a bit to sad people like me. Who get quite sick of people knocking SEGA, and that its all down to Sammy for the profits.

In the end though it all about the games and I just hope that money goes towards SEGA Rally III, Out Run III ect . Then I’ll be one happy gamer

Like I said, I don’t know the breakdown of the profitability, but considering that Sammy is one of the top (if not the top) pachinko company, it’s not really that much of a stretch of the imagination to think that the majority of the money comes from them.

That being said, to me, at least, it simply doesn’t matter, as long as you get to play the games that you like. That’s what it’s all about in the end, I think.

I don’t see how it could ever be quite that simple Abadd. It still matters since unless the SEGA side of SegaSammy at least proves itself to be an asset then few liberties will be given for more “risky” projects. And the majority of titles people on this board want to see would probably qualify as risky projects, or certainly require some risks to achieve the experience people hope for.

Hopefully they have succeeded enough so far?

Yes the money that Sammy supplied Sega at the begining of the merger gave Sega the oppurtunity to finace their plans to have a presence in the American market again,hench the result of this were these deals with several American development studios and the aquisition of The Creative Assembly as well as the new UK Sega development studio that have opened it’s doors lately.

Whether this will lead to a new SHENMUE 3? I think yes. Since Sega wants to cater to the American/western market SHENMUE was always popular with american gamers and that reason alone is probably why they would create another SHENMUE for the next gen systems. At the moment the X360 is the only viable next gen system(with the PC) to start making their new presence felt in American game charts.

Exactly.

That’s not my intention. However, I can’t really read the following line in any other way:

Now apparently, it doesn’t matter if it would be “Sega Sammy is looking at its videogame business to offset rising costs in their gambling business…”. Personally, I find it hard to believe that it wouldn’t make any difference.

I just get sick of people thinking SEGA makes no money and thats it all down to Sammy. SEGA been making profits since 2001 (all thanks to its Arcade divsions granted) it was saddled with dept that was SEGA big problem and Sammy fixed all that.

Sammy wouldn’t have not have bought SEGA is it was not making money , or it couldn?t make Sammy any money.