Sega took a 70% Financial hit loss + how to make Sega great again.

It's weird to hear this news, when SEGA feel like they're killing it lately. They must wonder what they have to do to catch a break these days :cautious:
 
This is gonna sound weird but I think it was a mistake on SEGAs part to port VC4 to XB1. Ports cost money and frankly not many people buy Japanese rpgs on Xbox. Yeah, it sucks for consumers but really I dont think itd be worth the investment most of the time for SEGA. Also, its weird Switch is great for sales small indie or AA games but as soon as AAA third party games are released it seems to kinda have trouble, think as Ive read both VC1 and VC4 did quite poorly on the system.
 
Haven't watched the full video yet, but a bit skeptical if the reporting on SEGASAMMY's financials are being reflected accurately given the clickbait title.

Here's the report, if anybody wants to have a look through themselves.

Actually, just skimming the first few minutes it doesn't appear he separates SEGA from SEGASAMMY. Pachinko, Pachislot, and Digital Games (mobile, online, etc) were all below expectation in FY2019, less products were launched than in their original plan, and they had a one-off relocation cost too.

I don't know enough about business finance to really parse the rest, but the "OMG 70% LOSS" stuff and trying to solely relate it to the SEGA we commonly think of rather than the whole business entity of SEGASAMMY... yeah, it's clickbait.
 
It could be because they're spending a lot of money to set up pipelines in 2018 to recoup it back+profit in 2019-2020 now that I think about it...It'd be a good idea to keep an eye on Sonic Racing,Judgement,& Mega-drive mini if they sell gangbusters or not...oh and their other flagship title Persona 5 Royal & Sakura Taisen VI hitting domestic market later this year too.
 
高野和泉 said:
It could be because they're spending a lot of money to set up pipelines in 2018 to recoup it back+profit in 2019-2020
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Looking at several different documents regarding the results of the 2018 fiscal year and the plans for the 2019 fiscal year, this is precisely what it appears to me. Sega doesn't seem terribly bothered by the loss in 2018, with sensible explanations as to what caused certain losses (like pachislot and pachinko machines facing new anti-gambling regulations in 2018, resulting in machines needing new certification, as well as R&D to explore new directions to compensate for the loss of gambling appeal), and plans for 2019 that, I think, are very reasonable. People see "down 70%!" and freak out, but most big companies have years where there's big losses, and oftentimes that one bad year sets them up for several much better years.
 
Inno said:
Looking at several different documents regarding the results of the 2018 fiscal year and the plans for the 2019 fiscal year, this is precisely what it appears to me. Sega doesn't seem terribly bothered by the loss in 2018, with sensible explanations as to what caused certain losses (like pachislot and pachinko machines facing new anti-gambling regulations in 2018, resulting in machines needing new certification, as well as R&D to explore new directions to compensate for the loss of gambling appeal), and plans for 2019 that, I think, are very reasonable. People see "down 70%!" and freak out, but most big companies have years where there's big losses, and oftentimes that one bad year sets them up for several much better years.
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But if their plans fail tho...I hope Sega has a big enough war chest! :eek::oops:
 
高野和泉 said:
But if their plans fail tho...I hope Sega has a big enough war chest! :eek::oops:
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Not sure if I'm reading this correct, but the consolidated balance sheet part of the report tells us how much cash SEGASAMMY has on hand... at least I think. I know fuck all about business finance or how to read these reports, so don't take this as gospel. I'm trying to parse through it with some help from Google.

Anyway, looks like they have just over $1 billion USD in cash assets. Sounds reasonable for the SEGASAMMY group in total. They took a 20% knock to cash assets in the last fiscal year, which isn't a surprise considering the rest of the report. They aint' going out of business tomorrow though, so don't worry.
 
It's not really accurate to describe it as a "70% loss." Their overall profits were down by 70% compared to last year, but they were still profitable. This idea that Sega is constantly on the brink is just a figment of the internet echo chamber.
 
If their gaming sector is doing well while other sectors are losing profitability then we may see an increase in investment when it comes to video games. This may actually be good news for traditional SEGA fans. but I haven't read the report so we may see a decrease in game investment too if it hasn't been performing well either.
 
Here are some ideas I'd like to see happen with Sega but never will, but I can still dream. Firstly, I'd like to see Sega merge its video gaming division with Nintendo. IMO besides Yakuza Sega doesn't make great games anymore. Sonic Mania was good but that was a rehash of old Sonic games. Even though Nintendo has had there struggles one thing no one can deny is there first party titles. I believe Nintendo could turn things around for Sega and breathe new life in Sega first party titles. Secondly, I've read articles where the media is interviewing the developers of the Yakuza series and the question was asked if Yakuza will ever come to the Switch. I'm paraphrasing but the answer given was that the Switch wouldn't be the right platform. The Nintendo Switch is selling like hotcakes and you don't want to put the one popular series you have on the Switch. How does that make any sense? At least take Yakuza 0 or Kiwami release it and see what happens. I'm not a psychic but IMO Yakuza would do great on the Switch. What do you guys and gals think?
 
A merger with Nintendo would basically remove one of their key revenue sources right now - which is in the PC space. Unless they twist Nintendo's arm to let them remain active on PC or operate autonomously in some respects (unlikely, but you never know), SEGA would have to sell all their PC-exclusive IP and studios and stop releasing titles in general on PC. It would be a decent cash injection, but that kind of money isn't needed right now.

You should take a look in the 70% loss thread we have already. That figure has been used in a pretty clickbaity way and doesn't tell the full story of SEGASAMMY's fiscal year 2019 report.
 
I think mods should merge this thread with mines? @spud1897

@OP

Nintendo and Sega have clashing ideology/philosophy so It'd be a bad idea honestly.

Ninties are way behind the times while Sega are way too ahead of their time. If Sega's creativity cylinders are cranked to the max, Ninty's hardware would be more of a detriment...sadly.:(
 
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I'd like to see traditional Sega back at least software wise, if HW truly is out of the que. I hope everything pans out.

I read somewhere on Era that SEga top heads do still yearn for some of that same HW success they've had a taste of back in the days again...:geek:
 
Merged and edited the title to take account of the other posts.

Cheers for the heads up
 
高野和泉 said:
I think mods should merge this thread with mines? @spud1897

@OP

Nintendo and Sega have clashing ideology/philosophy so It'd be a bad idea honestly.

Ninties are way behind the times while Sega are way too ahead of their time. If Sega's creativity cylinders are cranked to the max, Ninty's hardware would be more of a detriment...sadly.:(
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I 100% agree that Nintendo is behind the times, but Nintendo has hit a grand slam with the Switch. I don't want to see Sega lose their identity I'd just like to see Nintendo work their first party charm on titles like: Sonic, Knights, Altered Beast, Comix Zone, Streets of Rage, GunStar Heroes, Ecco the Dolphon, Crazy Taxi, Jet Set Radio, Golden Axe, Out Run and Skiies of Arcadia.

Also the problem with Sega's creativity is that it's almost non existent. Besides Sonic Racing, Yakuza and Judgement(which I think will do great) Sega doesn't do anything but make bad Sonic games.

I understand that Sega isn't the financial powerhouse they once were and that they have to be more reserved and calculated about what they do. That's why partnering with Nintendo or Sony and leaning on their money and creativity would be the best option. Things are only going to get worse for Sega if they keep doing what they've been doing for the past decade.
 
In my respective opinion, Sega has potential to be SEGA again and save itself through these forward-looking options:

1. SEGA Subscription App: Every game on any device for a monthly or annual subscription.

2. Dreamcast 2: The Chomecast of SEGA, compatible with any TV or computing device with a pre-bundle OS, classic titles, and its own SEGA Store, featuring new & exclusive apps, games, and media of all kinds.
 
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