Sammy Becomes SEGA's Largest Shareholder

[Silanda]

They had a Streets of Rage 4 in development for Dreamcast... looked totally ass.

Yeah, but it was just the concept video. The whole SOR 4 debacle did really prove how inept Sega's management was ("Streets of Rage, never heard of it").

 

[Qroach]

tag,

All I know about Sammy, is that Guilty Gear X2 is one of the best games ever made, period, and would be the all-around best 'traditional 1v1 fighter' ever if Soul Calibur 2 didn't exist.

As I said, anyone (sammy in this case) that thinks there's more money to be made of arcade games compared to console games, doesn't know that they are doing Imo.

Regardless of the one or two popular console games they have, they came out and stated that they think sega should concetrate more on arcaede games instead of consoles.

 

[passerby]

As I said, anyone (sammy in this case) that thinks there's more money to be made of arcade games compared to console games, doesn't know that they are doing Imo.

I think only financial analysts with access to detailed reports, accounts and knowledge of both console and arcade markets can deliver a good opinion. How much potential does the arcade market offer? - What solid numbers? What proportion did arcades contribute to Sega's profits in the last financial report?

We shall see the wisdom or folly of such decisions perhaps in... 2005 financial report.

 

[London Geezer]

I think only financial analysts with access to detailed reports, accounts and knowledge of both console and arcade markets can deliver a good opinion. How much potential does the arcade market offer? - What solid numbers? What proportion did arcades contribute to Sega's profits in the last financial report?

We shall see the wisdom or folly of such decisions perhaps in... 2005 financial report.

All hail this piece of brain that is passerby! At last something intelligent in this thread.

 

[Qroach]

Perhaps t sammy was only talking about Japan for all we know. I can't recall if arcades there are still popular or not. I do know the arcade market in north america has shrunk to something small from what it was 10-15 years ago (street fighter 2 was teh last hurrah).

Or look at it this way, how often do you or anyone you know feel the urge to go to an arcade to play some video games? I know at one time I used to live in arcades, and now most arcade games are just quarter munchers ad don't provide teh interest level I once had.

 

[London Geezer]

Perhaps t sammy was only talking about Japan for all we know. I can't recall if arcades there are still popular or not. I do know the arcade market in north america have shrunk to something small from what it was 10-15 years ago. Or look at it this way, how often do you or anyone youknow feel the urge to go to an arcade to play some video games? I know at one time I used to live in arcades.

Maybe we've all grown up since then? That's one reason. Arcades have gone down, but i think our mind plays a big role in this too. As passerby said we would need analysts to give us numbers, because saying "i don't go to arcades anymore, therefore the arcade market is dead" is a bit simplistic and ambiguous if you know what i mean....

 

[notAFanB]

Or look at it this way, how often do you or anyone you know feel the urge to go to an arcade to play some video games?

depends, I go around twice a week back in the UK until they started cloing alot of the local arcades.

currently (in AP) popping in almost every night for multiplayer and/or one-one-one tournaments.

 

[Qroach]

As passerby said we would need analysts to give us numbers, because saying "i don't go to arcades anymore, therefore the arcade market is dead" is a bit simplistic and ambiguous if you know what i mean....

That's NOT what I based my opinion on. That's just something to cinsider when looking at why they have died out from the most popular days. I based my opinion on the fact that the arcade market has already shrunk over the years (at least as far as NA goes). There's been numberous reports about this regarding north america arcades over the last 5-6 years. Then again, you're in London, right? I can't speak for europe or japan on this matter as I've only seen information regarding north america in the past. Arcade games once drive console sales with the many arcade game ports, these days, arcade game ports don't have the same meaning.

 

[maskrider]

Isn't arcades more than just video games now ?

From my visits to Japan, on the ground floor of a games center, you can find the UFO catcher and something like that, if there are video games, there will be usually another floor/section for them.

In Japan, SEGA has quite many stuffed dolls (e.g. Winnie the pooh dolls) in those catchers. Other franchise may be making more money than the supposed main stream video game business.

Anyway, I don't think Sammy is stupid, they will sort the things out and hopefully bring SEGA back to even better shape.

 

[London Geezer]

I think one other reason why the focus has shifted from Arcades to Home Consoles is the fact that Coin-ops used to be the best games available, especially technologically. Then home consoles started pulling out faithful (if not better) versions of the same arcade games, and today the best games (both technologically and gameplay-wise) are one home consoles. With a very very few exceptions.

Personally, i used to go to arcades because i knew i could find games that were miles better than home console versions, nowadays i can just pop in a ps2/GC/Xbox game and experience the best games available now. Also, i've grown out of "quick fixes", as in 10 minutes worth of gameplay, i want deep long games now, and arcades do not offer that.

 

[maskrider]

Well, the last time I went into an Arcade (about a week ago, a big one with only video games), there are not much people, almost all the games there have better versions or ports on console, some even really outdated. The latest one being the SEGA MMORPG arcade (key of avalon or something like that), the others are Konami, Namco or Taito's racers which is way behind the graphics on consoles. The exception is Initial D Arcade Stage V.2 which is definitely looking a lot better than the PS2 version.

I definitely know console is taking over the arcade scene here, but I can only know the supposed situation (just supposed, if it is really that bad I doubt the game center can even survive with such a big avenue) where I live. I wouldn't doubt Sammy, a profit making company, who want SEGA to focus more on arcade. I don't think the reason that Sammy bought the major stake just to screw SEGA because of the failed deal.

 

[Evil_Cloud]

Well, the last time I went into an Arcade (about a week ago, a big one with only video games), there are not much people, almost all the games there have better versions or ports on console, some even really outdated. The latest one being the SEGA MMORPG arcade (key of avalon or something like that), the others are Konami, Namco or Taito's racers which is way behind the graphics on consoles. The exception is Initial D Arcade Stage V.2 which is definitely looking a lot better than the PS2 version.

I definitely know console is taking over the arcade scene here, but I can only know the supposed situation (just supposed, if it is really that bad I doubt the game center can even survive with such a big avenue) where I live. I wouldn't doubt Sammy, a profit making company, who want SEGA to focus more on arcade. I don't think the reason that Sammy bought the major stake just to screw SEGA because of the failed deal.

But remember it was Sega who screwed the merger talks in the first place.

 

[maskrider]

Well, the last time I went into an Arcade (about a week ago, a big one with only video games), there are not much people, almost all the games there have better versions or ports on console, some even really outdated. The latest one being the SEGA MMORPG arcade (key of avalon or something like that), the others are Konami, Namco or Taito's racers which is way behind the graphics on consoles. The exception is Initial D Arcade Stage V.2 which is definitely looking a lot better than the PS2 version.

I definitely know console is taking over the arcade scene here, but I can only know the supposed situation (just supposed, if it is really that bad I doubt the game center can even survive with such a big avenue) where I live. I wouldn't doubt Sammy, a profit making company, who want SEGA to focus more on arcade. I don't think the reason that Sammy bought the major stake just to screw SEGA because of the failed deal.

But remember it was Sega who screwed the merger talks in the first place.

That shows Sammy wants (or needs) SEGA so much. Business is business, I won't believe Sammy buy major stake of SEGA just for the sake of screwing her.

 

[bbot]

According to this article, Sammy might eliminate Sega's sport game division.

http://gamesindustry.biz/content_page.php?section_name=pub&aid=2705

Maybe MS should try to get Visual Concepts. MS' own sports games aren't that good..

 

[passerby]

From the article:

Satomi-san hopes Sega will make use of Sammy's Atomiswave system, a low-cost, cartridge-based, JAMMA-compatible arcade setup that runs on the same CPU as Sega's Dreamcast console and Naomi arcade systems, and which the company has rolled out on a worldwide basis. "It's low cost enough that even a single play at 10 yen [around eight cent] a game can turn a profit," he said this week. "We can sell it in third-world countries as well."

In its last reported six-month figures, Sega posted a massive loss - 2.5 billion yen (€19 million) - in the home console business, which was only offset by a similarly gigantic 5.6 billion yen (€42.5 million) profit in the arcade sector. Its home console titles continue to review relatively well, but Sega has struggled to harness that critical momentum.

I don't think we can really find a lot of fault with Sammy's decisions...

 

[Sonic]

The situation is getting very hostile. The feeling we're all getting is "my way or the high way." I don't know whether to be in fear of my job or not, but hopefully everything will go well.

Sammy wants to push arcade a lot more. They better be willing to put the funding into SEGA to make it happen. The business decisions will probably end up better in the end for SEGA. But not all the decisions will be good. There are rumors of layoffs in the coming months. These aren't rumors passed around the net either, these are from employees in offices.

 

[Cyborg]

Im really not in agreement with sammy wanting sega to focus more on arcades. Lets face it, its a dead market and nothing will revive it at this point with the influence home consoles has on gamers. In japan arcades still have some breath left in them but you can mainly thank DDR for that as the arcades there have a ratio of DDR stations compared to other arcades to almost three to one from what i was told. Other popular games there are racing dogs and horses.. slapping your boss' ass, pachinko obviously and the rest being fighters. Its still not a market i would like to see sega focus on, and if they would, they would target pretty much only japan. Arcades in north america have become a big joke, just try to find an arcade that has FzeroAX, sure in big cities its probably doable but north america is bigger than a few select cities. Even if you find one, thats not really the point, go ask the owner of that arcade how profitable it has been in the past few years.

If it gets hostile and sammy twist sega's arm to the point of almost dictating what sega should be making, i'll be hoping for a massive exodus, sorry for your job Sonic but i would prefer having sega's talent leave and form new studios or enhance existing ones than be forced to bend over a company that really has no success worthy of mentioning outside of stupid pachinko coin up machines. As a gamer it would actually be exciting to see an exodus from sega, starting from scrath, creating new franchises, sharing their knowledge or ideas with other studios who can potentially pull off and finance such projects. Sometimes i wish that NCL would do the same with EAD, wipe it out entirely, lock Miyamoto away and start from scratch with their younger talent, it will never happen of course but one can dream. A massive exodus from Sega would bring much to the japanese development community if you ask me. It would be sad but better than seeing sega crippled by Sammy.

 

[passerby]

a company that really has no success worthy of mentioning outside of stupid pachinko coin up machines.

Not related to the topic and nit-picking. But I urge all to adjust any degratory conception of pachinkos' worth in profit-making. Quite the contrary, pachinkos make big $$$. I've seen them in action while in Tokyo. If they ever get introduced to other countries, I won't be surprised if they get classified as gambling and are restricted to "above 21 only" premises.

 

[Sonic]

I guess pachinko's are relatively as addictive as slot machine are?

 

[maskrider]

Pachinko centers are making a mass amount of money in Japan, that is a cultural thing that others won't understand.

I can't believe any one can stand that long in front of a damn boring metal balls falling machine (the same issue to me like the boring slot machines). But there are really that many Japanese doing it all day long.