Sega Sammy posting losses, cutting jobs...despite supporting the Wii?

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While the article talks about Sega Sammy as a whole which includes a lot more than console gaming division, it does mention the financial workings of Sega s a game developer/publisher.

"During the reporting period, the segment posted an operating loss of ¥5 billion ($62.4 million) on revenues of ¥96 billion ($1.06 billion) for the period. Sega Sammy said game sales were led by current fiscal-year releases Sonic Unleashed and Football Manager 2009, as well as continued sales of Mario & Sonic at the Olympic Games."

I really don't understand this. How can Sega lose money in its gaming division? Yes they had a few commercial flops last year(Golden Axe, Valkyra Chronicles) but it was mostly a successful year for Sega.

-Mario & Sonic continued to sell great for DS and Wii

-Condemned 2 sold a million units across ps360

-Ironman sold a shitload despite being a terrible game and probably costing very little to make

-House of dead 2&3 , ghost squad, samba de amigo all sold very well on the Wii considering they were ports of old titles

-Sega Superstar Tennis sold over 2 million units across all platforms

-Sonic Unleashed sold relatively well across all platforms

-Phantasy star PSP sold a shitload in Japan

-Segas Football manager for PC always sell well and this year was no different

Furthermore, I didn't see Sega developing too many "HD" games in 2008 year so developing costs should be down.

Can someone explain how a company that did relatively well can still lose 60 million dollars. Remember, Sega supported the Wii quite a bit...only companies supporting HD consoles are supposed to fail no?

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I think it's mainly about Sammy, not Sega

Neos - "If I'm posting in this thread it's just for the lulz."
Tag by the one and only Fkusumot!


Sega has thrown quite a lot of money into publishing for the Wii in 2009. Perhaps that is where some of the money has gone?

Neos said:
Troll topic is trollish

You are allowed to think that but there are a few topics blaming HD gaming for every loss that is posted.

Besides, nothing presented here was manipulated and is fact based. You need to re-define the word troll or not throw it around without reason.

 Lol...nevermind. post was changed.

Neos said:

I think it's mainly about Sammy, not Sega

Sammy losses are much larger than that. Those are Sega gaming division only.


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Haha yea sorry disolitude, my brother invaded my PC for a sec and thought he was funny =P

Neos - "If I'm posting in this thread it's just for the lulz."
Tag by the one and only Fkusumot!


Their Wii ventures is the one that actually giving them profit. Most likely the HD department is hurtn them a bit. Just imagine how much further the lost would be if they had no wii games. Even if they didnt develop that many HD games it still a large sum which needs a high sell through to get a good ROI.


Most sales for game companies are actually down. As Iwata said, this recession hasn't hit the industry overall, however it has enlarged the gap between what sells and what doesn't sell (ie. people are more likely to buy games in a recession, however they are less likely to buy multiple games. Thus, only the most desirable games are bought, reducing the sales for most companies).

A game I'm developing with some friends:


It is largely a technical exercise but feedback is appreciated.

wow.. sammy really being a letdown for sega.. i was expecting SEGA to atleast have $50mil in profits.. oh well.. I guess next year could be better.. a lot of titles didnt go as well as expected and some really unexpected ones did. The losses arent too bad though and their revenue is growing- just a tough year for everyone ahead

Doubt is not a pleasant condition, but certainty is absurd.

owner of : atari 2600, commodore 64, NES,gameboy,atari lynx, genesis, saturn,neogeo,DC,PS2,GC,X360, Wii

5 THINGS I'd like to see before i knock out:

a. a AAA 3D sonic title

b. a nintendo developed game that has a "M rating"

c. redesgined PS controller

d. SEGA back in the console business

e. M$ out of the OS business

They have some secret HD games in development that cost 100 mil each. They are graphical powerhouses and M$ didn't moneyhat this time. They refused to take fan advice even though a wii version of these projects would have cost only $70 000. Take that sega!

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