FGNOnline - FAST GAME NEWS ONLINE

08/1/09 OPINION : FGNOnline GIVES IT'S TAKE ON SEGA SAMMY'S CURRENT FINANCIAL SITUATION

SEGA SAMMY is teetering on the edge of financial collapse, they are currently not any position to field a consumer electronics product, whether a console or a handheld. They are on the verge of 3 straight years of substantial losses.

The vast majority of the losses stem from the company's consumer division. If the bleeding doesn't stop then SAMMY will be left with no other option but to offload SEGA.

The fact of the matter is that the pure play publishing business of SEGA never really got of the ground. SEGA has been struggling ever since they entered the field in 2001.

In the opinion of this editor the best thing that can happen now is for SAMMY to sell SEGA to a consumer electronics giant such as SAMSUNG or Panasonic, or maybe even Apple. If any of these three want in on the living room battle then purchasing SEGA is their best bet. It is a far safer risk than starting from the bottom and building their own brand.

From SEGA's perpective they need the financial clout to combat the deep pockets of Microsoft, Sony and Nintendo.

Brian Holzheuer
Associate of Mr Zachary Morris