Sega expects to post a year-end loss of 58.3 billion yen, up from previous forecasts of 23.6 billion yen. As expected, these values come off of less than expected Dreamcast hardware and software sales. In Japan, Sega managed to sell 280,000 Dreamcast systems. Europe added 560,000 units to that with America adding 1.35 million and Asia adding an additional 130,000. The total number of systems sold worldwide during the term comes to just 2.32 million. To get a grasp of how short Sega came of its goals, take a look at the amount of excess Dreamcast hardware inventory, per territory:
- Japan: 280,000
- America: 1,200,000
- Europe: 460,000
- Asia: 90,000
Sega will be taking numerous steps to make a triumphant move to profitability. We already know that the American Dreamcast is now $99. In Japan, Sega will announce its clearance plans at some point in February. The company will slim its management and will give an overhaul to all related companies both domestic and overseas. Unfortunately, this means layoffs for many.
Although Dreamcast hardware is being phased out, Sega will continue with software sales. The company expects 9,000,000 pieces of Dreamcast software worldwide for the coming term. As an interesting note, this is basically the same number of software units it expected for the current term. Sega has around 30 first party DC titles in development. A total of 10 network titles are being developed for Dreamcast and PC release.
Sega will also begin its multi-platform plans this term. Chu Chu Rocket will launch with the Japanese Game Boy Advance on March 21st. It will be followed, as previously mentioned, by Puyo Puyo and Sonic, the latter of which will launch worldwide when the American Game Boy Advance sees release. PS2 software support includes Virtua Fighter 4, Sakura Wars, the Tsukurou series and more. Additionally, Sega will be porting over titles from the Saturn onto the PSX, with specific mention given, for some reason, to Sonic (was there even a worthwhile Sonic game on the Saturn?). Sega will actually be bringing over its current line of low-end Dreamcast development tools, Ninja and Shinobi (cute) to the PS2 to aid in development.
Development will also take place on a variety of other platforms. The company already has dev kits on order for Xbox and Gamecube. PC development will continue, as will previously mentioned plans for mobile devices such as cell phones. As mentioned yesterday, Sega will also continue to keep the arcade business at the forefront of its plans. In particular, Sega plans to develop 3-4 lines of titles similar in nature to the wildly successful Derby Owners Club games.
Finally, there's the matter of Sega's networking, which the company has been developing as one of the main targets of its business. Sega is working with Sony on network gaming, something that will continue to remain one of the company's pillars. In America, Sega has already said that it will push Seganet towards a multiplatform strategy.
If everything comes together just right, we have the potential for a kinder, gentler Sega - for investors at least. Peer, can we have a sega.ign.com? Pretty please?
-- Anoop Gantayat is saddened that gamers will never again be able to "Own a Sega."
