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Forums - Gaming Discussion - Sega Sammy posting losses, cutting jobs...despite supporting the Wii?

Kasz216 said:

Lets see....


Games that might have lost money.


Golden Axe (was supposed to have a big budget desptite being garbage.)

Valkira Chronicles (Doesn't look expensive, but it did have a custom engine.)

Viking Battle for Asgard (Mediocre HD game, prolly cost something.)

Condemned 2 (Probly cost a lot.)

Bejing 2008 (?)

Sonic Unleashed (HD)

The Club

Nights

Hey also note that the 5 billion is down from 15 billion despite the economic downturn.... (Because they supported the Wii?)

 

This.    Sega needs to give up HD.  They just aren't producing high enough calibur stuff to compete in that market.  Valkyrie Chronicles was excellent but didn't sell either.

On the flip side, I'm sure they were hoping for better sales out of Samba de Amigo, but M&S is a beast for them.  9m and still going strong.



 

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celine said:
Mr Khan said:

SEGA's never been known for their financial wizardry, i think. why they had to abandon the console race despite having 11 million Dreamcasts on the market by the time they dropped out, which they could have expanded on for an easy second place that generation. Only 15 million more in 4 more years and they would be over both GameCube and Xbox LTD

Joke post ? Business isn't a race.

 

 

That was the point of my post. To be so far ahead when they had to withdraw from the market should indicate their financial ineptitude



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Gamerace said:
Kasz216 said:

Lets see....


Games that might have lost money.


Golden Axe (was supposed to have a big budget desptite being garbage.)

Valkira Chronicles (Doesn't look expensive, but it did have a custom engine.)

Viking Battle for Asgard (Mediocre HD game, prolly cost something.)

Condemned 2 (Probly cost a lot.)

Bejing 2008 (?)

Sonic Unleashed (HD)

The Club

Nights

Hey also note that the 5 billion is down from 15 billion despite the economic downturn.... (Because they supported the Wii?)

 

This.    Sega needs to give up HD.  They just aren't producing high enough calibur stuff to compete in that market.  Valkyrie Chronicles was excellent but didn't sell either.

On the flip side, I'm sure they were hoping for better sales out of Samba de Amigo, but M&S is a beast for them.  9m and still going strong.

500k wasn't enough for a DC port?  Come on now, games like VC sold 350k, Yakuza at 300k (don't ask my why no western release),  and you're talking about samba?  Golden Axe was the mega bomb though, pretty sure they barely made any money back.

 



currently playing: Skyward Sword, Mario Sunshine, Xenoblade Chronicles X

Sega has some major games to be released this year that are in development for a long time, and probably are one of the reasons for the loss on the home gaming division, and then there's stuff like buying the licences for some marvel games the aliens movies and the Olympics that has to cost allot of money

The Olympics have paid off big time with M&S and beijing selling well, marvel may have given them some money but not much so far i think, and the aliens license is yet to launch so its so far a money loser for sega

O and the platinum deal probably also cost them allot of money so far with no games launched at the moment

I think 08 was supposed to be a money loser for sega because of the many deals sega made with external developers and the development cost of some of its games for 09 and some games underachieving like Golden Axe, the club, universe at war, that game with gas powered games also did terrible i cant remember its name and a ton of Japanese only games that sold like garbage there

I think these were the big 3 reasons for sega failing in the home gaming division and if it weren't for M&S it would bean even worst



theRepublic said:
celine said:
theRepublic said:
Interesting chart

http://www.segasammy.co.jp/english/ir/settlement/segment_consumer.html

It looks like their net sales are growing by leaps and bounds, but for some reason they don't profit from it. Part of it is R&D. I couldn't really find anything specific for why costs went up so much.

Seems most of their sales came from abroad ( 24m vs 2m ) so unfavorable exchange rate surely hurt them badly.

Also their R&D more than doubled from  17.7m in 2006/Q3 to 37.2m in 2008/Q3.

 

http://www.segasammy.co.jp/english/ir/library/pdf/200903_3qe.pdf

On page 7, the exchange loss for the whole company is listed as 1423 million yen.  Considering that the loss for the consumer segment was 5647 million yen, that wouldn't account for everything.

The costs in that link you provided are exploding.  I wish there were specifics though.

 

Great stuff guys...I never saw these statements before. Makes me wonder WTH is sega up to?

Its almost like Tom Kalinske is back in charge of sega and is using his "spend money to make money" tactics that worked before for the genesis, except they are not working anymore :)



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johnsobas said:
Gamerace said:
Kasz216 said:

Lets see....


Games that might have lost money.


Golden Axe (was supposed to have a big budget desptite being garbage.)

Valkira Chronicles (Doesn't look expensive, but it did have a custom engine.)

Viking Battle for Asgard (Mediocre HD game, prolly cost something.)

Condemned 2 (Probly cost a lot.)

Bejing 2008 (?)

Sonic Unleashed (HD)

The Club

Nights

Hey also note that the 5 billion is down from 15 billion despite the economic downturn.... (Because they supported the Wii?)

 

This.    Sega needs to give up HD.  They just aren't producing high enough calibur stuff to compete in that market.  Valkyrie Chronicles was excellent but didn't sell either.

On the flip side, I'm sure they were hoping for better sales out of Samba de Amigo, but M&S is a beast for them.  9m and still going strong.

500k wasn't enough for a DC port?  Come on now, games like VC sold 350k, Yakuza at 300k (don't ask my why no western release),  and you're talking about samba?  Golden Axe was the mega bomb though, pretty sure they barely made any money back.

Is Kenzan even included in these reports?



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As far as I can tell no HD release managed to break 1 million units other than SST (a pack-in that earned less $ per sale) and Condemned 2 which can be had for $20 (not a good sign, and also 1 mil is not confirmed by Sega IIRC). With their success being more in the west, the fact that their most expensive projects failed isn't looking good for them. Plus, there's little doubt that a lot of their less expensive ones failed as well.

disolitude lists a handful of potential bright spots that are badly out numbered by the things we'd all like to forget, and even many of those were financially moderate successes at best. The HD consoles absolutely crushed Sega (see above), and outside of S&M the SD business wasn't great either. I mean, people are saying that Samba de Amigo is nothing but a port when it does have new tracks and they had to pay licensing costs for all of the songs not in public domain or their own, and they are selling that for $20 too. Some rehashed franchises made decent returns, but they can't in anyway make up for the failures.



You do not have the right to never be offended.

Kasz216 said:

Lets see....


Games that might have lost money.


Golden Axe (was supposed to have a big budget desptite being garbage.)

Valkira Chronicles (Doesn't look expensive, but it did have a custom engine.)

Viking Battle for Asgard (Mediocre HD game, prolly cost something.)

Condemned 2 (Probly cost a lot.)

Bejing 2008 (?)

Sonic Unleashed (HD)

The Club

Nights

Hey also note that the 5 billion is down from 15 billion despite the economic downturn.... (Because they supported the Wii?)

 

Don't forget Yakuza: Kenzan!.



Well, they ARE publishing Empire: Total War, The Conduit and MadWorld right now, as well as developing Yakuza 3. Their costs must be high, and let's not forget, we ARE in a recession...



(Former) Lead Moderator and (Eternal) VGC Detective

ChichiriMuyo said:
As far as I can tell no HD release managed to break 1 million units other than SST (a pack-in that earned less $ per sale) and Condemned 2 which can be had for $20 (not a good sign, and also 1 mil is not confirmed by Sega IIRC). With their success being more in the west, the fact that their most expensive projects failed isn't looking good for them. Plus, there's little doubt that a lot of their less expensive ones failed as well.

disolitude lists a handful of potential bright spots that are badly out numbered by the things we'd all like to forget, and even many of those were financially moderate successes at best. The HD consoles absolutely crushed Sega (see above), and outside of S&M the SD business wasn't great either. I mean, people are saying that Samba de Amigo is nothing but a port when it does have new tracks and they had to pay licensing costs for all of the songs not in public domain or their own, and they are selling that for $20 too. Some rehashed franchises made decent returns, but they can't in anyway make up for the failures.

 

Im perfectly ok with Sega not developing for HD consoles. The problem with that idea is developers. Sega owns a few external studios as well as internal ones...and they still should have creative inputs on what projects they do.

I am pretty sure employees from Creative Assembly, WoW Entertainment, AM2, Secret Level (those fuckers!) still would like to work on these HD consoles. If Sega goes to them and says "ok, Wii and DS games only from now on" some studios will just look for publishers other than sega and other studios will have a massive exodus of people. You'd get Sonic Team accross the board for all studios.

I believe Sega is trying to stay current with technology and development tools and this is why its good for them to venture in to the HD. They still are the 2nd (or 3rd now) largest gaming company in Japan afterall...