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Sega of America workers have ratified their union contract
Workers at Sega of America, a division of Sega Sammy Holdings Inc., have officially ratified their union contract. This makes it one of the first major North American video-game companies to take this step.
Sega's COO says the company is not for sale
Sega is not for sale, according to company COO Shuji Utsumi. The executive told Bloomberg News that the company isn’t open to acquisition talks at the moment, despite rampant speculation that Microsoft was about to purchase Sega. Some of these rumors popped up due to a general consolidation trend in the gaming industry, with big fish gobbling up everything in sight.
Sega’s Super Game project already has a Crazy Taxi reboot under way
We could see online, multiplayer versions of 'Crazy Taxi' and 'Jet Set Radio' coming in the next four years.
Sega says its 'Super Game' project is actually multiple AAA titles
Sega has revealed that its 'Super Game' might use NFTs — and it's not just one game.
Sega sells its arcade business due to the COVID-19 pandemic
Sega has sold its arcade business to amusement company Genda after the COVID-19 pandemic led to steep losses.
Sega Sammy to cut hundreds of jobs in 'Digital' restructure
Sega Sammy is restructuring to prioritize "Digital Games," a reform that'll see it make job cuts including "soliciting voluntary retirement" for around 300 employees; 120 employees are due to be approached about voluntary retirement next month. Sega of America is among those to be hit by layoffs as it relocates from San Francisco to Southern California. Sega Sammy plans to now pursue growth in smartphone and PC online gaming, an area that's seen rising results for the company in recent years. Despite the success of some packaged games such as million-seller Alien: Isolation, Sega Sammy's consistently reported favorable results from the likes of Phantasy Star Online 2, Puyo Puyo Quest and Chain Chronicle.
Persona Q: Shadow of the Labyrinth ships 250,000 in Japan
With 250,000 copies shipped in under a month, Persona Q: Shadow of the Labyrinth was a bright light in an otherwise quiet quarter for Sega Sammy, games-wise. It's a solid start for Atlus' 3DS RPG, which should have appeal to both Persona and Etrian Odyssey fans. For comparison, Etrian Odyssey 4 shifted 150,000 copies in roughly its first three months on sale in Japan, while Vita entry Persona 4 Golden shipped 700,000 worldwide by the end of 2013. Persona Q is still to come to the West, with releases penned in for North America and Europe on November 25 and 28.
Report: Former Index president arrested for fraud
Masami Ochiai, former president and CEO of Atlus parent company Index Corporation, has been arrested by Japanese authorities who claim Ochiai fraudulently boosted Index's financial records prior to its sale to Sega Sammy Holdings last year. News of the arrest comes from Japanese business periodical Nikkei (via a Gematsu translation), which claims that the 4 billion yen profit shown on Index's records of the third fiscal quarter of 2012 doesn't actually exist. Investigators believe Ochiai fraudulently reported business transactions that never occurred in order to avoid the removal of Index from JASDAQ (the Japanese analogue to the American NASDAQ stock exchange). Unfortunately for Index, even that profit (the first Index had shown in six years), couldn't save the company from bankruptcy, and it was while sorting out that mess that authorities picked up on Ochiai's reported attempts to make his company look a few million yen better than it otherwise would have. Though Ochiai claims that he has "not been engaging in fraud," investigators plan to delve deeply into Index's financial records under the belief that Ochiai wasn't alone in his deception, and that these financial hijinks were systematically plotted out by Index management. [Image: Sega]
Sonic: Lost World tails off at 710,000 units shipped
Sonic: Lost World sales dried up in 2014; as of March 31, the Wii U and 3DS game shipped 710,000 units total since its launch in October 2013. The figures come from Sega Sammy's fiscal year report, and the company doesn't note if they include download sales or not. Total War: Rome 2 was the company's best-performing game in the fiscal year, shifting 1.13 million copies by the end of March 2014. Football Manager 2014 placed second at 790,000 units, with Company of Heroes 2 not too far behind with 680,000 shipments. In roughly its first month on sale in Japan, PS4 and PS3 entry Yakuza Restoration shipped 390,000 units. Sega Sammy's consumer business posted year-on-year decline for packaged software, with the company blaming low sales on the "harsh market environment." The division shipped 8.73 million packaged games across April 2013 to March 2014, down 18 percent from the previous fiscal year. Sega Sammy expects that figure to rise substantially to 12.78 million for the fiscal year ending March 2015.
Sega slashes profit forecasts by 36 percent
Sega announced an adjustment to its earnings forecast for the fiscal year ending March 31, cutting its expected net income by 36.2 percent. The company adjusted its projected net income to be 30 billion yen ($293.5 million), down from its previously-reported amount, 47 billion yen ($459.8 million). Additionally, it expects its net sales to be 377 billion yen ($3.69 billion), a 22.3 percent decrease from its original projection of 485 billion yen ($4.75 billion). Sega cited a decline in its pachislot and pachinko machine business for the change in projections. The company cut its pachislot machine sales projection by 171,000 units and its pachinko machine sales projection by 304,700 units for the fiscal year. The biggest cut comes to Sega's projected operating income: a 49.3 percent slide from 73 billion yen ($714.2 million) to 37 billion yen ($362 million). Should Sega meet its new projections, it would amount to a year-on-year increase in net sales and operating income by 17.3 percent and 94 percent, respectively, but would also represent a 10.3 percent decrease in net income. [Image: Sega]
Sega reveals plan to make Atlus into Atlus once more
In its first major move since acquiring the company in 2013, Sega has revealed plans to split Index Corporation into two separate divisions, according to a Gematsu translation of a Sega press release. Come April 1, Index Corporation will cease to exist and in its place will be two new divisions of the overarching Sega corporate umbrella. Atlus will continue to create the sort of quirky, Japanese games the company is most famous for, while Index Corporation - this new division borrows its name from the now-split subsidiary - will handle things like advertising and content distribution. Sega managing director Yukio Sugino will serve as representative for Atlus while Yasuhiko Hamada, Index executive vice president, will lead Index Corporation. Additionally, Index Digital Media, Inc. (Index Corporation's international arm) will be rebranded Atlus USA Inc. According to Sega, this corporate restructuring will allow both Atlus and Index Corporation to function more smoothly, yet remain independent to create the kind of content that made Atlus an attractive acquisition for Sega in the first place. [Image: Sega]
Sonic: Lost World shipped 640,000 copies last year
Sega Sammy revealed Sonic: Lost World shipped 640,000 units across Wii U and 3DS in 2013, as the company looks ahead to the mascot's new guise in the also Nintendo-exclusive Sonic Boom. The figure comes via newly published financial reports for the nine months ending December 31, 2013, in which Sega Sammy also shipped 680,000 units of Football Manager 2014 on PC. The company didn't state if either figure included download sales. The two games contributed to total packaged software shipments of 6.31 million across the nine months, down year-on-year by 9 percent. However, Sega Sammy noted "favorable" performances for Phantasy Star Online 2, and other downloadable games like smartphone entries Puyopuyo Quest and Chain Chronicle. Sega put down 14 billion yen to acquire Persona dev Atlus from Index in November 2013, but the company's nine-month figures show a net profit of 44.3 billion yen, which converts to around $434 million. The company made substantial gains in the period through sales of investment securities and non-current assets. Sega Sammy's financial report comes the day after the company unveiled Sonic Boom, a game with a new art style that looks to take the mascot in yet another fresh direction. It's due this year, with western studios Big Red Button and Sanzaru handling the Wii U and 3DS versions respectively.
Sega to continue 3D Classics series on 3DS, US release depends on sales
The remainder of Sega's first round of 3D Classics for the 3DS eShop will be made available in the US store over the next few weeks, but it seems like another batch is already in the works. Siliconera noticed a Twitter exchange between James Booth, an assistant producer at Sega's mobile-oriented Hardlight Studio, and Yosuke Okunari, a producer at Sega CS3. When Booth congratulated Okunari on the 3D Classics series, Okunari's reply thanked him and said "we develop the 2nd series for Japan. If this overseas release succeeds, it may release these in the world." Okunari did not hint at which games might be included in a future round of 3D Classics. So, there you go. If you're gunning for more 3D Classics in the US beyond those that have already been announced, the series' performance across our shores will need to satisfy Sega, first. The question is, will you love the 3D effect and features added to Streets of Rage, Shinobi and Sonic the Hedgehog enough to buy them again?
Sega: 'No plans to undertake' Index projects, IPs available to Atlus
Sega Sammy's recent acquisition of Atlus' parent company, Index Corporation, left fans concerned that the business transaction would result in fewer Atlus RPGs making it overseas or Sega meddling with their projects. Thankfully, Famitsu magazine's interview with Sega Sammy COO Naoya Tsurumi (translated by Siliconera) suggests that everyone's worrying for nothing. When questioned about the structure of Index's development going forward, Tsurumi stated that Sega has "no plans to undertake any of their work" and that Index will be "working as an independent company." With that said, Tsurumi said he would "love to have them utilize any of Sega's dormant IPs." It's kind of fun to think what Atlus would cook up with the Jet Set Radio or Space Channel 5 franchise, especially with their upcoming venture onto the dance floor. Of course, a new Valkyria Chronicles might make a lot more sense, given the studio's reputation with RPGs. Update: This article originally credited the involved interview to Siliconera. While Siliconera provided a translation, the interview was conducted by Famitsu magazine. We apologize for the mistake.
Sega of America confirms unspecified number of layoffs
Sega of America revealed this week that it's laid off a number of employees, although the company didn't say how many jobs were lost. GamesBeat, who confirmed the news with a Sega spokesperson, believes the number of those laid off is "small." "As the gaming industry continues to evolve," Sega told GamesBeat, "Companies must adapt and adjust in order to compete and succeed in an ever-changing environment. As a result of this, Sega of America has recently undergone a restructure that will enable the company to focus efficiently on developing new and existing content across digital platforms as well as continuing to focus on key brands for packaged goods." Sega Sammy purchased Atlus parent company Index Holdings recently for around $141 million, after posting $331 million in fiscal net profit in May. However, over the last 18 months the company endured global closures and layoffs, seeking to drastically reduce operating costs in the face of decreased forecasts.
Report: Sega to purchase Atlus' parent company for 14 billion yen [update: confirmed]
Following reports of Sega bidding on Atlus parent Index Holdings, parent company of Atlus, Japanese media company Nikkei has reported that Sega Sammy will purchase Index Holdings for 14 billion yen ($141.6 million). The deal is to be concluded in November. Sega rattled its cup at the grave of THQ in July, seeking revenue from the publisher that was made through pre-orders for Sega's Company of Heroes 2. We've reached out to Atlus and will update as we learn more. Update: Atlus Japan has confirmed the purchase.
Report: Sega bidding on Atlus parent company
Sega is among about 20 companies bidding on Index, parent company of Atlus (Shin Megami Tensei, Persona), reports Bloomberg (translated by Siliconera). The bidding for Index has reportedly gone as high as 20 billion yen ($203.3 million), and the company could be sold by the end of the month. Index filed for "civil rehabilitation," a form of bankruptcy under Japanese law, in late June. Plans to sell of its operations were announced in mid-July. At the time, an Atlus representative assured Joystiq that its upcoming release plans would be unaffected. The publisher's latest game, Dragon's Crown – which we thoroughly enjoyed – should launch tomorrow. A Sega acquisition would make sense, given that the company already distributes Atlus games in Japan. It would also help expand Sega's growing pool of talent – the company acquired Company of Heroes 2 developer Relic earlier this year.
Company of Heroes 2 shipped 380K in five days
Sega's consumer division, which handles its video game business, reported a small operating profit of ¥39 million, or just under $400,000, thanks in part to Company of Heroes 2, which shipped 380,000 copies in five days. MMORPG Phantasy Star Online 2 chipped in, reaching the 500,000 mark on Vita three months after coming to the portable in Japan, taking into account both physical and downloaded copies. The division saw a year-on-year decline in packaged software shipments across the period, despite the launches of Phantasy Star Online 2 on Vita and Company of Heroes 2, although the strategy sequel only had five days at retail to contribute. Sega Sammy announced a net profit of ¥12.9 billion for its first fiscal quarter ending June 30, which converts to around $132 million. The company's net profits reflected a sizable 409 percent year-on-year growth, which it partly attributed to sales of noncurrent assets.
Sega Sammy posts fiscal net profit, Aliens: Colonial Marines shipped 1.3M [update]
Sega Sammy reported financial results for the fiscal year ending March 31 2013 today, noting a net profit of ¥33.5 billion, which converts to $331 million. The figure represents annual growth of 53.3 percent. However, the company's operating profit decreased year-on-year by 67.3 percent, down now to ¥19.1 billion, or $189 million. While Sega Sammy made significant net profit, largely through gains on the sales of "investment securities" and transfers of employees' pension benefits, the company noted decreased demand for packaged games in light of global economics. Sega Sammy said it must adapt to a market leaning towards games on social networks and smartphones. That decreased demand was coupled with a year of restructuring at Sega Sammy's US and European divisions. With less games coming out as a result, it's no surprise Sega Sammy saw decline in packaged software shipments, down to 10.8 million overall. They include 1.31 million units of the critically panned Aliens: Colonial Marines, as well as 1.36 million for Sonic & All Stars Racing Transformed and 940,000 for Football Manager 2013. Meanwhile, Yakuza 5 shipped 590,000 units since its launch in Japan in December 2012. Sega Sammy's biggest success gaming-wise looks to be Phantasy Star Online 2. The PC and Vita MMO has a subscription base of over 2.5 million now, and the company said revenue from in-game purchasable items "exceeded forecasted levels." Sega Sammy forecasts it will ship 11 games on PC, 7 on Wii U, 7 on PS3, 6 on 3DS, 5 on Vita, 4 on Xbox 360, and 2 on PSP in the fiscal year ending March 31 2014 - of course there'll be some crossover there. The company estimates a 41 percent growth in net profit for the next fiscal year, up to ¥47 billion, or $464 million. Update: Sports Interactive's Miles Jacobson tweets Football Manager 2013 has now passed the 1 million mark for sales, having done so five months earlier than FM2012 did.
Sega Sammy sales and profits down in first half, consumer business sees growth
Sega Sammy has reported its financial results (PDF) for the first half of its fiscal year, ending March 31, 2012. The company reported sales of over ¥136 billion ($1.7 billion) a decrease of ¥16 billion ($199,000) over the same period last year. Net income reached ¥3.87 billion ($48 million), a slight decrease over the ¥3.98 billion ($49 million) reported for the same period last year.Sega Sammy attributes the decline to "turmoil in the global financial markets, mainly in Europe, and the economic slowdown of emerging nations." As a result, sales of amusement machines (pachinko, etc) slowed, as did the sale of packaged video games.It's not all bad news, however, as Sega's consumer video game business is one of the few sectors of the company to see some growth. The division posted an operating loss of ¥780 million ($9.7 million), a dramatic improvement over the ¥6 billion loss ($74.7 million) posted during the same period last year. Part of this growth is attributed to strong Japanese sales of Hatsune Miku Project Diva F for the PlayStation Vita. Phantasy Star Online 2 has also done well, registering over a million players and exceeding Sega's in-game purchase forecasts.Earlier this year, the company announced plans to restructure and streamline its consumer video game business, resulting in staff cuts in Europe and America and the closure of offices in Europe and Australia. Going forward, the publisher plans to focus on digital distribution and its core brands, including Sonic the Hedgehog, Total War, Football Manager and Aliens.
