sega posts profit for 3rd consecutive quarter, home consumer division profitable

[MrSega]

I don't consider this modern conglomerate anything but that, they could get back into consoles and they still wouldn't be Sega to me. That said, I'm enjoying Anarchy Reigns quite a bit on Xbox 360, I need to play it more. I guess I need to check into some more games from Platinum.

I would love to hear your thoughts on why they wouldn't be Sega to you.

[TheSonicRetard]

Hard to believe 12 years ago they were on the verge of bankruptcy and people wondered if they would even be around in the next decade.

How ironic, that SEGA couldn't handle publishing rights to most of its multi-platform IPs during 2001-2003 and that THQ was handling its GBA titles.

How ironic that EVERY single one of those publishers, Acclaim,Agetec,THQ are all defunct. And SEGA is still going.

Remember back about 6 or 7 years ago when some big head of Sega was asked which publisher model do they want to pursue in the future, and he replied that he'd like Sega to emulate THQ's model? We're lucky, in retrospect, that Sega decided against that model, and that they've fully embraced DD.

I'm of the opinion that, the moment Sega set up a full branch of their company dedicated to digital distribution, they ensured their viability for decades to come. It was such an incredibly forward thinking decision, classic Sega really. With a decidedly un-classic sega result.

I don't consider this modern conglomerate anything but that, they could get back into consoles and they still wouldn't be Sega to me. That said, I'm enjoying Anarchy Reigns quite a bit on Xbox 360, I need to play it more. I guess I need to check into some more games from Platinum, or I guess I need to check out Vanquish as I've played their other games (not many) or don't care to play them.

There are still bits and pieces of the old Sega still around. Specifically Team Yakuza, which has a history stretching all the way back to when they were called Team Shinobi. There are people around who have been making games for Sega since the original Shinobi.

More importantly, their 5 main development studios - Sonic Team, Team Yakuza, The Creative Assembly, AM2, and now Relic - are all very high quality studios again. You can count on any of the above 5 pumping out a great product year on year. And their second party relations - Sumo Digital and (formerly) Platinum studios - yielded great results. It reminds me of when Sega used to pad their output with stuff from Treasure.

[MrSega]

Remember back about 6 or 7 years ago when some big head of Sega was asked which publisher model do they want to pursue in the future, and he replied that he'd like Sega to emulate THQ's model? We're lucky, in retrospect, that Sega decided against that model, and that they've fully embraced DD.

I'm of the opinion that, the moment Sega set up a full branch of their company dedicated to digital distribution, they ensured their viability for decades to come. It was such an incredibly forward thinking decision, classic Sega really. With a decidedly un-classic sega result.



There are still bits and pieces of the old Sega still around. Specifically Team Yakuza, which has a history stretching all the way back to when they were called Team Shinobi. There are people around who have been making games for Sega since the original Shinobi.

More importantly, their 5 main development studios - Sonic Team, Team Yakuza, The Creative Assembly, AM2, and now Relic - are all very high quality studios again. You can count on any of the above 5 pumping out a great product year on year. And their second party relations - Sumo Digital and (formerly) Platinum studios - yielded great results. It reminds me of when Sega used to pad their output with stuff from Treasure.

Going almost entirely digital caused SEGA to stop spending hundreds of millions on packaged multiplatform media that wasn't selling. It basically completely erased the debt they had and helped put money back in their pockets. Digital content cost only thousands and is bringing in strong returns so they earn even more than they spend. It's smart.

SEGA is saving around $2 billion not developing packaged multi-platform content. It's saving them a ton of cash.

[bultje112]

Great news during a period when most companies are posting losses:

http://www.segasammy.co.jp/english/p...nal_130206.pdf

Biggest take away from all this? For the first time in YEARS, Sega's home consumer division (I.e. console games, not arcade/pachinko games) has turned a profit. Year on year sales are down for Sega, but because they release fewer games, it has resulted in a return to profitability. Every division of SegaSammy is making money right now, which is stellar news for Sega.

Sonic once again has lead the way, with Sonic All-Stars Racing Transformed posting the biggest sales, trumping even Football Manager.

their biggest money maker, pachinko business is dropping down hard and that rend has been going on for some time in japan.

[bultje112]

...and everybody was bashing MrSega for saying Sega was back in black.

bashing because he made up the bullshit about sega making a new console.

The neat thing is that SEGA is making more money and is in STRONGER financial shape then they were in the Dreamcast years.

Also, if you think SEGASammy is profitable, imagine what it will be like IF SEGA does become SEGA Orbi and is able to profit in dozens of different markets. This would definitely allow them to have a first party game division to be safe and secure.

it couldn't have been any worse either than in the dreamcast days or they'd be gone

[MrSega]

their biggest money maker, pachinko business is dropping down hard and that rend has been going on for some time in japan.

Panchinko's are NOT SEGA's biggest money maker. It never has been SegaSammy's biggest moneymaker. It's always been a rollercoaster for them by Quarterly. Up one period,down the next.

You forgot that they also are an Arcade company. You also forgot TMS Entertainment,Joyopolis, SEGA TOYS,Sega Repblic all these divisions pull in enough revenue to make up for slow Panchinko sales and operations.

[TheSonicRetard]

Going almost entirely digital caused SEGA to stop spending hundreds of millions on packaged multiplatform media that wasn't selling. It basically completely erased the debt they had and helped put money back in their pockets. Digital content cost only thousands and is bringing in strong returns so they earn even more than they spend. It's smart.

SEGA is saving around $2 billion not developing packaged multi-platform content. It's saving them a ton of cash.

That, and they also stopped putting out shovelware. There is less overhead involved in DD compared to publishing, say, Iron Man 2. I saw so much doom and gloom on the internet when Sega announced they were cutting the bloat from their release schedules and didn't get it at all. Focusing on a few, high quality releases is much preferable to releasing dozens of shitty games each year. It saves sega money and makes their portfolio look more attractive. Sega's average metacritic score for the last year, for example, was higher than Activision and Konami's.

It's better to be the master of one, than the jack of all trades.

[Silanda]

Oh wow, PSO2 is at 1.7 Million users.

Yes, now wouldn't it be nice if SOA and SOE got with the program and released the damn thing outside of Japan? There's been a deafening silence for months.

[shrap]

this is great news with more to come hopefully! I have to admit I'd love to see sega back in the console business but as long as they can continue developing (love the yakuza series) and publishing games it's good enough for me.

[MrSega]

That, and they also stopped putting out shovelware. There is less overhead involved in DD compared to publishing, say, Iron Man 2. I saw so much doom and gloom on the internet when Sega announced they were cutting the bloat from their release schedules and didn't get it at all. Focusing on a few, high quality releases is much preferable to releasing dozens of shitty games each year. It saves sega money and makes their portfolio look more attractive. Sega's average metacritic score for the last year, for example, was higher than Activision and Konami's.

It's better to be the master of one, than the jack of all trades.

SEGA's problem during 2006-2009 was that they simply published too much mediocre quality games and big licenses that had been outsourced by independent developers. Most of the lackluster quality wasn't SEGA's fault. It was the developers contracted by SEGA who weren't putting effort into their properties. Games like the The Golden Compass weren't SEGA properties. It was just lazy development studios.

That,combined with under promotion and poor management in America, made SEGA look very negative as well as spending close to $200-300 million a year on multi-platform releases that had little chance of success in the first place.

@shrap. Read my User Signature and tell me what you think via PM.

[Moirai]

this is great news with more to come hopefully! I have to admit I'd love to see sega back in the console business but as long as they can continue developing (love the yakuza series) and publishing games it's good enough for me.

That, and they need to release Sonic racing transformed in Japan dammit!

Also Sega should buy Treasure. With funding from Sega, Treasure would be unstoppable!

[TrekkiesUnite118]

Yes, now wouldn't it be nice if SOA and SOE got with the program and released the damn thing outside of Japan? There's been a deafening silence for months.

Install the English patch and play the game on the Japanese servers with the rest of the English players.

[shrap]

@shrap. Read my User Signature and tell me what you think via PM.

has there been any elaboration as to what orbi is? is it a codename for a console or just a new division?

[MrSega]

has there been any elaboration as to what orbi is? is it a codename for a console or just a new division?

The latter. Based on its description. Basically the second thing you said.

[bultje112]

Panchinko's are NOT SEGA's biggest money maker. It never has been SegaSammy's biggest moneymaker. It's always been a rollercoaster for them by Quarterly. Up one period,down the next.

You forgot that they also are an Arcade company. You also forgot TMS Entertainment,Joyopolis, SEGA TOYS,Sega Repblic all these divisions pull in enough revenue to make up for slow Panchinko sales and operations.

yes it is. by far it is.