Top
190°

Sega Losing Money, Closing Arcades, Cutting Jobs

Sega just reported their financial results for the nine months ending in December 2008. And they're not good reading. The company is losing money, and as a result, will be losing staff and arcades as well.

Across Sega Sammy Holdings as a whole - which includes Sammy's pachinko/pachislot machines, along with Sega's arcade machines and home video games - a downturn in revenue has led to the company revising its forecast for the financial year, with Sega now bracing for a USD$235,424,993 loss come March.

That's a lot of money. Businesses can't survive bleeding that kind of money. So belts are to be tightened across the company. And especially at Sega.

Firstly, 110 of Sega's Japanese arcade centres (presumably those in the 'burbs, not downtown Shinjuku) are to be closed or sold off.

Next, Sega will look to cut loose 560 of its 3100 employees. At the moment, this is being done via a policy of voluntary redundancies, with the first of these "volunteers" to cease employment in March 2009.

Finally, across both Sega and Sammy there will be a 20% reduction in research & development, "by consolidating titles to be developed". That means we'll likely see some upcoming Sega games canned.

There once was a time it was probably good to be a Sega employee. Especially one in Japan. Now does not seem to be one of those times.

The story is too old to be commented.
aspergersyndrome3232d ago (Edited 3232d ago )

They should have made Valkyria Chronicles a 360 exclusive!

ultimolu3232d ago

...Why?

So you guys can brag about having yet another rpg?

No...Valkyria Chronicles is fine where it is. If anything, it should have been multiplatform if Sega was going through rough times. That would have helped.

FantasyStar3232d ago

Who knows? There are more 360 owners, it might've done well..."might've". Tough times: but then again SEGA never really wow'ed me to begin with so I guess it's just the times that old and new leadership switch places.

CrazzyMan3232d ago (Edited 3232d ago )

Thanks. =)

3232d ago
SiLeNt KNighT3232d ago

Can't wait for that new Sega console!

Keowrath3232d ago

Agreed! The 360 has more than enough Jrpg's and the PS3 needs some lovin' VC is a great game (I was actually shocked it was from Sega!) Making the game 360 exclusive wouldn't have helped IMO, if it had been multiplatform then they could probably be looking at double if not more sales figures.

Sega just needs to seriously step their game up. VC was the first game in a long line of poo to actually rise above their usual crap. They delivered Golden Axe last year and from day dot that game looked ropey as hell, their recent ultimate collection is even missing some of their more ultimate games. I'm sorry Sega, you were a great company a while ago but not anymore. If you want your fans back, then offer them quality titles.

I still own my Dreamcast with a ton of titles (mainly 2d fighters) so I wouldn't say I hate the company but in this generation they need to do more than dig up old megadrive (genesis) titles and destroying old time greats like Golden Axe.

That being said, I'd love to see a current gen Shinobi.

Obama3232d ago

haha you can't play VC if you only have a 360. Great. IF it is a 360 exclusive it would have sold even less for sure.

+ Show (5) more repliesLast reply 3232d ago
PS3isBUST3232d ago

Pretty much on the same boat.

Fishy Fingers3232d ago

Everyone, pretty much in (not "on") the same boat. Japanese companies have just been hit hard because of the Yen.

Off topic: What was previous account called?

ultimolu3232d ago

Because you know, the other companies are all fine and dandy. I love how you placed Sony and Sega in the same sentence. They're not the only companies going through rough patches dear.

I don't know what profits a person to create multiple accounts just to hate on a piece of hardware.

ape0073232d ago (Edited 3232d ago )

I guess that was after you played the killzone 2 demo lol

CrazzyMan3232d ago (Edited 3232d ago )

Trying to find a logic..... No logic here, you FAIL.

+ Show (1) more replyLast reply 3232d ago
ape0073232d ago

I want HD crazy taxi for psn\xbla so bad

"hey hey hey it's time to get some crazyyyy money,are ya ready,HERE WE GO!YA YA YA YA YA"

THAT GAME RULES

dylantalon3232d ago

sega needs to release 'Crazy Taxi' and House of the dead' in playstation home , along with a few other titles like outrun.

killzone 2> all fps and tps.

xbl/psn - dylantalon.

ps. 2009 6SP g37 awd coupe FTW

dylantalon3232d ago

APE 007, what's the most amount of money you've collected in crazy taxi?

ape0073232d ago (Edited 3232d ago )

I can't remember but I remember playing"YOU HAVE 10 CRAZZZZY MINUTES"

all day and night

after that I got crazy taxi 2,I tear it apart and JET GRAND RADIO WAS 1 OF FAVORITE GAMES EVER

I played my first tony hawk game on DC(th2:pro skater)and I was amazed

kof:98,marvel vs capcom:2 and 1,sonic,ready to rumble

I mean the dreamcast WAS TOTALLY UNIQUE

Show all comments (33)
The story is too old to be commented.