SEGA To Merge With Sammy

[Lazy8s]

They're going for full business integration into a new holding company called Sega Sammy Holdings, effective October 1st. This news comes as SEGA reports tripled profits for their fiscal 2003 on the back of strength in their arcade business (titles like Out Run 2 being strong contributors).

 

[PC-Engine]

Yay!!! Good to see SEGA making ground in the software biz and especially the arcade sector. 8)

Here's hoping NAOMI 3 comes out with VF5 powered by PowerVR tech. I knew that cloth simulation ImgTech was showing had some uses.

 

[Evil_Cloud]

If this means Sega's management will improve... I am happy... If not, I fear the worst for Sega.

 

[CIN]

Sammy is a HUGE company. I think this is a good move and might enable the return of SEGA in the console hardware biz.

 

[Sonic]

Samkmy may be a huge company, but the guy in charge of it is a dictator. Do not fear the worst just yet, I think the new management will still allow SEGA dev teams to make the games they want without forcing them into conform to what the old terms of the merger were (2003).

 

[matroxgaming]

Is their a reason

Everyone automatically says they hope for VF5 to be on new PowerVR hardware, do you know something everyone else doesn't? Sorry if it's old news, VF is my favorite game and I'd love any info on a new architecture it "Might" be on.

 

[PC-Engine]

What's known so far:

1. SEGA has licensed PowerVR Series 5 and it'll be used for something.

2. Both NAOMI 1 & 2 uses PowerVR.

3. VF4 debuted on NAOMI 2.

4. SEGA has said they're working on NAOMI 3.

5. NAOMI 3 will debut with a very high profile game.

 

[passerby]

Nice summary by gamesindustry.biz

Sammy set to complete Sega takeover with full buy-out
Rob Fahey 13:16 18/05/2004

Sega acquisition set to be concluded in October in massive buyout deal

Japanese game publisher and gambling machine manufacturer Sammy Corp has announced that it is to acquire the remaining 78 per cent of Sega's stock which it doesn't already own, in a deal worth 165 billion Yen (1.2 billion Euro).

The news follows months of intense speculation over the intentions of Sammy president Hajime Satomi, who had indicated that a number of different options were being considered regarding the future relationship of the two companies after Sammy bought a 22 per cent stake in Sega last December.

Under the terms of the arrangement, Satomi will head up a new holding company which will effect a merger of Sega and Sammy in October by buying up all the shares in both companies - with Sega shareholders being given 0.28 shares in the new company for each share they own, while Sammy shares will be exchanged one for one.

In effect, this completes the merger deal between the two companies which was originally proposed in early 2003 - but was eventually rejected by Sega in an acrimonious and highly public debacle which led to the resignation of several of the publisher's senior executives.

The news of the complete take-over comes after Sega announced that its net income for the year to March 31st had more than doubled, with 8.8 billion Yen (64.5 million Euro) of income recorded, largely due to the continuing upswing in the company's arcade machine business.

Crucially, the loss in the company's home console operations narrowed massively - with a loss of 2.8 billion Yen (20.5 million Euro) recorded, down from 8.6 billion Yen (63 million Euro) last year.

Satomi-san, who will be president of the new merged company, has previously expressed his desire to see Sega focusing increasingly on the arcade market, and hopes to use the company's development talent and wealth of intellectual property to build on the success of Sammy's low-cost Atomiswave arcade system.

The Sega acquisition will also give Sammy a strong base from which to build its overseas operations. The company is currently largely focused on the domestic Japanese market, where it is the single largest supplier of the popular "pachinko" gambling machines found in arcades all around the country.

 

[passerby]

http://www.dengekionline.com/data/news/2004/05/18/117d9026dbb5267c294aabcecc1142be.html
According to the report, "management of Sega's 7 studios will be merged", including SegaWow, SegaAM2, HitMaker, AmusementVision, SonicTeam, SmileBit and DigitalRex. The merge will allow Sega to reorganize its R&D resources to more effectively channel them towards software and goods. This is targeted to take effect on 1st July.

 

[Jabjabs]

Here's hoping NAOMI 3 comes out with VF5 powered by PowerVR tech.

Only one word can describe that... ZING!!!

 

[archie4oz]

The merge will allow Sega to reorganize its R&D resources to more effectively channel them towards software and goods. This is targeted to take effect on 1st July

This deserves a great big wow... :? Every re-org claims the same thing, and this will be the third time for my old roomie...

 

[Lazy8s]

archie4oz:

This deserves a great big wow... Every re-org claims the same thing, and this will be the third time for my old roomie...

All that upheaval can be demoralizing. Unlike past scenarios where SEGA was trying to find their way with different reorganizations, though, this one is going to stick for a while.

 

[CIN]

Samkmy may be a huge company, but the guy in charge of it is a dictator. Do not fear the worst just yet, I think the new management will still allow SEGA dev teams to make the games they want without forcing them into conform to what the old terms of the merger were (2003).

Dictator=bad :?