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Sammy buys up Sega stock..CSK out.


Romier S
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Recently posted at Gamespot:

 

Sammy buys Sega Stock

 

Excerpt:

 

The specific details on how Sega and Sammy will work together will be decided following discussions between the two companies, but Sammy is already considering several plans. The two companies recently worked together on the CR Sonic, a Pachinko machine that featured Sega's mascot character, Sonic the Hedgehog. Sammy hopes to use Sega's other intellectual properties to brand their machines in a similar fashion, and to have Sega assist in the development of new Pachinko games. More importantly, Sammy and its subsidiaries are starting out a business project named NEWS (New Entertainment World of Sammy) to expand into the entertainment content and amusement sectors. Sammy hopes to use Sega to contribute to faster development of the NEWS project, leading to early profits.

 

Call me cynical but I'm not really feeling good about this.... :(

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Woohoo, Sonic should be in the next Guilty Gear game. ;)

 

Really though, it's not like those pachinko machines are going to see the light of day anywhere outside of Asia, where branded ones are probably commonplace. That's one of Sammy's amusement involvements, and it probably brings in a good deal of money for them "over there", but I doubt the relationship (as it stands now) is going to hurt Sega.

 

The exciting prospect (warning: about to jump to wild-ass conclusions) is that of Sega possibly developing for Sammy's new Atomiswave arcade platform (which, iirc is where SNK and Neo-Geo stuff is going to start heading eventually, partially due to bootlegging problems on the Neo). SNK, Sega, and Sammy all working together? Hell, it sounds good to me. :D

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The exciting prospect (warning: about to jump to wild-ass conclusions) is that of Sega possibly developing for Sammy's new Atomiswave arcade platform (which, iirc is where SNK and Neo-Geo stuff is going to start heading eventually, partially due to bootlegging problems on the Neo).

 

You do know the history of Atomiswave, right? Essentially, it's made from a bunch of leftover consumer Dreamcast parts that Sammy bought from Sega a while back. There's yet to be a really standout game on the platform (that I know of), and uptake of it has been slow. It's very low cost technology wise, which is a good thing cost wise, but not necessarily good longterm technology wise.

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You do know the history of Atomiswave, right? Essentially, it's made from a bunch of leftover consumer Dreamcast parts that Sammy bought from Sega a while back. There's yet to be a really standout game on the platform (that I know of), and uptake of it has been slow. It's very low cost technology wise, which is a good thing cost wise, but not necessarily good longterm technology wise.

No, actually I didn't know that. Most of what I've heard about it is things regarding it as the next arcade platform where things that would currently target the NeoGeo would go. The bootlegging has gotten so bad there that NeoGeo games have been released on PCB's only instead of the normal carts (such as SVC Chaos), and still the market got flooded with bootleg carts. So the general consensus is, people will be pulling out of the NeoGeo arcade market and instead start developing games for the Atomiswave. However, if it is indeed based off consumer Dreamcast parts, it really makes me wonder how long that's going to stick around unhacked...

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More good news... :?

 

Sammy on Sega

 

Excerpt:

 

On the subject of home consoles, Satomi commented he will ask Sega to select its game releases for home consoles more strictly. Satomi is scheduled to assume a more influential advisory role within Sega, sometime after a special meeting between the two companies is held next week, and to increase his role again, sometime this spring.
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It gets better, from totalvideogames.com

 

> Date Added: 2003-12-11 13:24:51

 

Sammy President urges SEGA to concentrate on arcade titles and move away from the consumer market?

?

 

In an exclusive interview with Bloomberg, Sammy President Hajime Satomi revealed the worst of SEGA fans fears, by urging the Japanese games developer to concentrate on the arcade market.

 

Having seen their financial year grow beyond all expectations thanks to the strong demand of their arcade titles, it?s clear to see why the recommendation has come from Satomi-san, however to have no SEGA in the consumer market would be worse then the day they pulled out of hardware development.

 

More worrying is recent comments made by Satomi, that suggest if SEGA doesn?t accept his decisions, he?ll simply increase Sammy?s stake in SEGA to a position where they?re forced to do what the Pachinko manufacturer says.

 

Certainly it?s a move considered to promote Sammy?s ?Atomiswave? arcade units, based around the Dreamcast and NAOMI hardware and utilising JAMMA compatible boards. It?s claimed that these units are extremely cheap to produce, with Satomi-san claiming ?It's low cost enough that even a single play at 10 yen a game can turn a profit. We can sell it in third-world countries as well".

 

We?ll have more news soon.

 

Article By: Chris Leyton

 

Well, as a long time sega fan, it's truly sad to see this company being gutted in such a crude fashion. Man, where's big bad microsoft to the rescue. Hey, Bill-san, you got a lot of spare change jingling in your pocket, how about picking up a smilebit for the old ms games division. Couldn't do worse than spending $375 million for Rare and all you got to show so far is GBTG.

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Well, as a long time sega fan, it's truly sad to see this company being gutted in such a crude fashion.

 

We're all rah-rah for Sega, and that's cool, but when exactly was the last time they had a real smash hit anyway?

 

I mean, I enjoyed Super Monkey Ball, and I love Beach Spikers, and a bunch of people love Jet Set Radio Future and Panzer Dragoon Orta too.

 

What do all these titles have in common? They didn't exactly burn up the sales charts. I am very far from wishing Sega any bad tidings because I think they're an excellent innovator at times, much more so than almost any company I can think of right now.

 

From a business perspective however, nothing they've made of late, to my mind, has been an unqualified runaway sales hit. No GTA, no Metroid Prime, no Halo, no Devil May Cry, nada. The sad truth is, if they're hauling down the big bucks in the arcade then it makes sense for Sammy to ask them to focus on that aspect since I can't really see any evidence to suggest that they're raking in comparable profits in the home market.

 

The fact that they've folded a couple of studios would seem to support this, and I'm just blue-skying here, but I'm sure somebody can back me up or prove me wrong ;). I may also be not exactly fingering the pulse of the Japanese market either, for that matter.

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We're all rah-rah for Sega, and that's cool, but when exactly was the last time they had a real smash hit anyway?

 

Well see this is where our understanding of the market, understanding of game development and financial well being go right out of the window and the gamer, at least in me, just steps out and says, who really cares?

 

I want Sega making games for a long time to come. Not only for the arcade market but for console owners. I've had this conversation ad nauseum with countless individuals across several boards and it comes down to my inability to care about money when it comes to Sega (mind you I care about thier financial well being but when it comes to game sales I've just stopped looking anymore out of sheer disappointment) because I just love thier games and want to see thier continued release. ;) I would be lying if I didn't say that gaming was missing something over the last few months because there has been nothing substantial out of Sega since thier development studio reorganization.

 

As far as sales success. Well you would be right Mark. PDO, JSRF etc.. have all been commercial failures however thier sports line sells decent enough (Just not anywhere near as well as thier competition). I'm not even sports fan at all and I would say its ashame to not have an ESPN Football 2k5 to look forward too. :( . Furthermore games like Virtua Fighter 4 Evo, Shinobi, Sonic Adventure et al have been successful at retail.

 

My point in all of my rambling? :D Sure I can see more focus being place on the arcade market. Its the smart bet, but not at the expense of thier consumer products. Sega leaving the consumer market to me is akin to Nintendo saying they will never make another cosumer videogame again. In a word it would be heartbreaking to this gamer.

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Oh and the news keeps getting better and better. :cry:

 

WOW lead resigns

 

Excerpt:

 

Sega veteran Rikiya Nakagawa has resigned from his position as president of Sega's arcade development subsidiary Sega WOW, ending two decades of service for the company, with no official explanation forthcoming as yet.

 

 

<-----Hugs several Sega games in the fetal position.

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Bring out your dead! Bring out your dead!

 

*lumps Sega into a barrel*

 

This sucks, consider Sega gone. Only way out of this would be if MS either purchased Sega outright or bought sections of their consumer gaming division from Sammy (rather than Sammy laying them off.)

 

I don't think MS will buy Sega outright for 2 reasons: Sammy already has a lead with the money to finish it, and frankly it's a wash if Sega goes under for MS (they don't get the sega games, but no other consoles gets them either = a wash.)

 

Buying the divisions separately might be an option, or just hiring all those programmers after lay-offs. This might be the only way we continue to see Sega games, under a new company with a new name.

 

This is as bad as if Nintendo sold out to Toyota or something. Blleehhh!!!

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  • 4 months later...

Well it looks as though Sammy is fully buying out the remaining Sega stock. Here is the report:

 

http://www.gamespot.com/news/2004/05/18/news_6098677.html

 

TOKYO--In a joint statement today, Sega and Sammy announced they will be "merging operations" in October by becoming subsidiaries of a new holding company, Sega Sammy Holdings. Once merged, Sega and Sammy's combined annual income for the fiscal year of 2005 are expected to be at 501 billion yen ($4.4 billion), making it one of the biggest game companies in Japan.

 

However, according to Bloomberg News, the announcement is actually a takeover of Sega by Sammy. Under the terms of the deal, Sammy, which already owns nearly 25 percent pf Sega, will exchange about 165 billion yen ($1.45 billion) of stock in the new company for Sega's remaining shares.

 

The part that concerns me:

 

Following the announcements, Sega also revealed it will be merging its divisions together. Starting July 1, Sega's seven subsidiaries--Sega Wow, Sega AM2, Hitmaker, Sonic Team, Smilebit, Amusement Vision, and Digitalrex, will begin integrating back into Sega.

 

:(

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Of interest (to me) at E3 were the 3 or 4 titles Sammy was demoing under their brand name (Sammy, of course). I thought it odd that they would publish games in the US using the Sammy name when they have access to such a respected name like Sega.

 

Sammy is a virtual unknown in the US and it seems to me to be an intelligent move to release these new games under the Sega brand. Why build an entirely new brand when you virtually own the rights to a name as powerful as Sega. It's like Infogrames (or whatever it was) using the Atari name.

 

BTW, that "sammy" game called Darkwatch looks really cool.

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