Sega Corporation and usually styled as SEGA, is a Japanese multinational
video game developer, publisher and hardware development company headquartered in Japan, with various offices around the world.
Sega previously developed and manufactured its own brand of home video game consoles from 1983 to 2001, but a
restructure was announced on January 31, 2001 that ceased continued production
of its existing home console, effectively exiting the company from the home
console business While arcade development would continue unchanged, the restructure shifted the focus of the company's home video game software development to consoles developed by various third-party manufacturers.
Sega's head offices, as well as the main office of its domestic division,
Sega Corporation (Japan), are located in Ōta, Tokyo, Japan. Sega's European division, Sega
Europe Ltd., is headquartered in the Brentford area of London in the United Kingdom.
Sega's North American division, Sega of America Inc., is headquartered in
San Francisco, having moved there from Redwood City, California in 1999.
Sega Publishing Korea is headquartered in Jongno, Seoul, Korea. Sega's Australian & European
operations outside of the United Kingdom closed on July 1, 2012 due to world
economic pressures. Distribution of Sega products in Australia as of 1 July 2012
is handled by Five Star Games, made up of all the redundant employees from Sega
Australia. By the end of 2005, Sega experienced strong earnings growth across multiple
divisions. Contributing to the company's success were strong Arcade sales and
sales of software titles Ryu Ga Gotoku (known as Yakuza outside of Asia).
In an effort to appeal to western tastes, they partnered with Obsidian
Entertainment to develop a new RPG
for the PlayStation 3, Xbox 360, and PC based on the Aliens franchise, which was subsequently
cancelled.[33] The
partnership was the latest in a series of collaborations with western video game
studios, including Monolith Productions (Condemned:
Criminal Origins), Bizarre Creations (The
Club), and Silicon Knights (The Ritualyst,
cancelled[34][35]).
That desire to have a more Western appeal for Sega was shortly followed up by
Sega acquiring British developer Sports Interactive after a successful run of
publishing Football Manager 2005 and 2006, in which they managed
to sell 1.5 million copies,[36] the
deal was said to be worth in the region of £30 million ($52 million) by Miles Jacobson,
Sports Interactive's Managing Director.[37] This
was, however, not the only developer Sega acquired, as they also purchased
American developer Secret Level. Although the terms of the deal were not
disclosed,[38]
Secret Level had begun work before being bought by Sega to "recreate a classic
Sega franchise" for the PS3 and Xbox 360 in July 2005, which was revealed to be
Golden Axe: Beast Rider later that year.
While Sega continued its expansion in the West, on May 8, 2006, it was
announced that Sega of Japan had begun helping famed Sega developer and Sonic Team head Yuji Naka (known for being the main programmer
for the original Sonic the Hedgehog games and Nights
into Dreams...) to start up his own company titled "Prope" (Latin for "beside" and "near future") in
which Sega helped provide 10% startup capital and
have the option to publish games produced from the studio if they wished to.
Due to the continued success of Sega's software sales, the company reported
on May 17, 2006 a 31% rise in net profits from that of the previous year of the
period ending March 31, 2006, being posted at ¥66.2 billion ($577 million), as
well as an increase in operating profit growing by 13% from the previous year,
being posted at ¥553.2 billion ($4.82 billion).[41]
Notable titles to have helped Sega increase profits in the West, such as Shadow the Hedgehog (which sold over a
million copies)[42] and
Sonic Riders, while in Japan, games such as Yakuza,
Mushiking, and Brain Trainer Portable continued to have strong
sales.
Although Sega seemed poised to continue increasing profits, the company
reported a massive drop of 93% profits for the period ending June 30, 2006
compared to the same period the previous year. Net income for the company
dropped from $98.3 million (a year earlier) to $7.12 million for this period as
well as total sales dropping from $926.5 million to $809.1 million,[43] Sega
reported that the decrease in profits was due to no significant big releases by
its slot machine division.
Despite this, Sega reported in November a massive 52% rise in profits for the
periods between April and September 2006, compared to the same period last
year.[44]
Software sales for the company had also increased with 5.75 million. Of those
units, 1.76 million were sold in Japan, 1.59 million in Europe, 2.36 million in
the US, and 30,000 in other regions.[45] a
number of titles were said to have performed well, in particular Super Monkey Ball Touch & Roll for the
Nintendo DS and Football Manager 2006 for the Xbox 360 having
sold well. While Sega performed better in 2006, they had slashed their forecasts
for the year ending March 2007 by 20% with an anticipated profit of $536.7
million, down from the initial profits of $656.7 million.
On August 26, 2007, IGN Australia announced that Sega would re-establish
itself in Australia, ending THQ Asia Pacific's distribution of Sega products in
Australia. Sega Australia has a very close relationship with Nintendo Australia, despite Sega Ozisoft and NAL previously being rivals in
the Australian gaming market. Sega Australia currently do not distribute in New
Zealand, instead like most other Australian publishers, they opt to let
retailers take care of the distribution e.g. EB Games Australia and Kmart.
Continuing to prepare more games for the Western market, Sega was able to
bridge a partnership with New Line Cinema in September to develop a game for the
movie tie-in game The Golden Compass[46] and
also partnered themselves with Fox to develop two new games based on the Alien franchise.[47] Sega
then assigned critically acclaimed developers Gearbox Software to develop a first person
shooter (Aliens: Colonial Marines) and Obsidian
Entertainment to develop an RPG based on the popular film
franchise for the PlayStation 3, Xbox 360, and PC. The latter was
cancelled for undisclosed reasons by Sega. In February 2013, Aliens:Colonial
Marines was released on Xbox 360, PS3, and PC. Sega has also been publishing
games from independent studios (such as Platinum Games), and is currently considering
turning them into franchises.
Sega has also designed an online flash game site dubbed "PlaySEGA," which
includes both original games and ports of classic games, with retro Sonic games
being promised in the long run.[48] Users
of this site earn various amounts of "PlaySEGA Rings", which they can use to
customize and house their avatar or enter weekly cash drawings.
In September 2009, evidence was uncovered[49] that
suggests Sega is expanding into the online gambling sector with the launch of an
online casino and poker room in October 2009.
Sega would also go on to release several blockbuster Sonic games for the Wii, Xbox 360, and PlayStation 3. Some of these are Sonic Unleashed (2008), Sonic
and the Black Knight (2009), and Sonic Colors (2010). All of these games sold well
in North America and Europe, but they did not sell well in Japan.
In 2010, Sega published a sequel to the original Sonic series with Sonic the Hedgehog 4: Episode I.
On January 22, 2013, Sega acquired the Vancouver-based developer Relic Entertainment from THQ (who had recently filed for bankruptcy).[50]
On May 17, 2013, Sega announced a worldwide partnership with Nintendo for the
Sonic the Hedgehog franchise and announced that
the next three Sonic games (Sonic Lost World, Mario & Sonic at the Sochi
Olympic Winter Games and an unannounced Sonic title) will be exclusive to
Nintendo consoles.[51] The
same day, Sega Europe announced that the publishing and distribution rights for
the next three Sonic games in Europe and Australia will be handed to Nintendo.[52]
However Sega will continue to publish Sonic Lost World in North
America and Japan.
Currently, the Consumer R&D Division focuses on development of game
software for consoles, handhelds and mobiles. The division is headed by
Toshihiro Nagoshi.[53] The
Amusement R&D Division focuses on the development of game software for
arcades. The division is headed by Hiroshi Yagi
video game developer, publisher and hardware development company headquartered in Japan, with various offices around the world.
Sega previously developed and manufactured its own brand of home video game consoles from 1983 to 2001, but a
restructure was announced on January 31, 2001 that ceased continued production
of its existing home console, effectively exiting the company from the home
console business While arcade development would continue unchanged, the restructure shifted the focus of the company's home video game software development to consoles developed by various third-party manufacturers.
Sega's head offices, as well as the main office of its domestic division,
Sega Corporation (Japan), are located in Ōta, Tokyo, Japan. Sega's European division, Sega
Europe Ltd., is headquartered in the Brentford area of London in the United Kingdom.
Sega's North American division, Sega of America Inc., is headquartered in
San Francisco, having moved there from Redwood City, California in 1999.
Sega Publishing Korea is headquartered in Jongno, Seoul, Korea. Sega's Australian & European
operations outside of the United Kingdom closed on July 1, 2012 due to world
economic pressures. Distribution of Sega products in Australia as of 1 July 2012
is handled by Five Star Games, made up of all the redundant employees from Sega
Australia. By the end of 2005, Sega experienced strong earnings growth across multiple
divisions. Contributing to the company's success were strong Arcade sales and
sales of software titles Ryu Ga Gotoku (known as Yakuza outside of Asia).
In an effort to appeal to western tastes, they partnered with Obsidian
Entertainment to develop a new RPG
for the PlayStation 3, Xbox 360, and PC based on the Aliens franchise, which was subsequently
cancelled.[33] The
partnership was the latest in a series of collaborations with western video game
studios, including Monolith Productions (Condemned:
Criminal Origins), Bizarre Creations (The
Club), and Silicon Knights (The Ritualyst,
cancelled[34][35]).
That desire to have a more Western appeal for Sega was shortly followed up by
Sega acquiring British developer Sports Interactive after a successful run of
publishing Football Manager 2005 and 2006, in which they managed
to sell 1.5 million copies,[36] the
deal was said to be worth in the region of £30 million ($52 million) by Miles Jacobson,
Sports Interactive's Managing Director.[37] This
was, however, not the only developer Sega acquired, as they also purchased
American developer Secret Level. Although the terms of the deal were not
disclosed,[38]
Secret Level had begun work before being bought by Sega to "recreate a classic
Sega franchise" for the PS3 and Xbox 360 in July 2005, which was revealed to be
Golden Axe: Beast Rider later that year.
While Sega continued its expansion in the West, on May 8, 2006, it was
announced that Sega of Japan had begun helping famed Sega developer and Sonic Team head Yuji Naka (known for being the main programmer
for the original Sonic the Hedgehog games and Nights
into Dreams...) to start up his own company titled "Prope" (Latin for "beside" and "near future") in
which Sega helped provide 10% startup capital and
have the option to publish games produced from the studio if they wished to.
Due to the continued success of Sega's software sales, the company reported
on May 17, 2006 a 31% rise in net profits from that of the previous year of the
period ending March 31, 2006, being posted at ¥66.2 billion ($577 million), as
well as an increase in operating profit growing by 13% from the previous year,
being posted at ¥553.2 billion ($4.82 billion).[41]
Notable titles to have helped Sega increase profits in the West, such as Shadow the Hedgehog (which sold over a
million copies)[42] and
Sonic Riders, while in Japan, games such as Yakuza,
Mushiking, and Brain Trainer Portable continued to have strong
sales.
Although Sega seemed poised to continue increasing profits, the company
reported a massive drop of 93% profits for the period ending June 30, 2006
compared to the same period the previous year. Net income for the company
dropped from $98.3 million (a year earlier) to $7.12 million for this period as
well as total sales dropping from $926.5 million to $809.1 million,[43] Sega
reported that the decrease in profits was due to no significant big releases by
its slot machine division.
Despite this, Sega reported in November a massive 52% rise in profits for the
periods between April and September 2006, compared to the same period last
year.[44]
Software sales for the company had also increased with 5.75 million. Of those
units, 1.76 million were sold in Japan, 1.59 million in Europe, 2.36 million in
the US, and 30,000 in other regions.[45] a
number of titles were said to have performed well, in particular Super Monkey Ball Touch & Roll for the
Nintendo DS and Football Manager 2006 for the Xbox 360 having
sold well. While Sega performed better in 2006, they had slashed their forecasts
for the year ending March 2007 by 20% with an anticipated profit of $536.7
million, down from the initial profits of $656.7 million.
On August 26, 2007, IGN Australia announced that Sega would re-establish
itself in Australia, ending THQ Asia Pacific's distribution of Sega products in
Australia. Sega Australia has a very close relationship with Nintendo Australia, despite Sega Ozisoft and NAL previously being rivals in
the Australian gaming market. Sega Australia currently do not distribute in New
Zealand, instead like most other Australian publishers, they opt to let
retailers take care of the distribution e.g. EB Games Australia and Kmart.
Continuing to prepare more games for the Western market, Sega was able to
bridge a partnership with New Line Cinema in September to develop a game for the
movie tie-in game The Golden Compass[46] and
also partnered themselves with Fox to develop two new games based on the Alien franchise.[47] Sega
then assigned critically acclaimed developers Gearbox Software to develop a first person
shooter (Aliens: Colonial Marines) and Obsidian
Entertainment to develop an RPG based on the popular film
franchise for the PlayStation 3, Xbox 360, and PC. The latter was
cancelled for undisclosed reasons by Sega. In February 2013, Aliens:Colonial
Marines was released on Xbox 360, PS3, and PC. Sega has also been publishing
games from independent studios (such as Platinum Games), and is currently considering
turning them into franchises.
Sega has also designed an online flash game site dubbed "PlaySEGA," which
includes both original games and ports of classic games, with retro Sonic games
being promised in the long run.[48] Users
of this site earn various amounts of "PlaySEGA Rings", which they can use to
customize and house their avatar or enter weekly cash drawings.
In September 2009, evidence was uncovered[49] that
suggests Sega is expanding into the online gambling sector with the launch of an
online casino and poker room in October 2009.
Sega would also go on to release several blockbuster Sonic games for the Wii, Xbox 360, and PlayStation 3. Some of these are Sonic Unleashed (2008), Sonic
and the Black Knight (2009), and Sonic Colors (2010). All of these games sold well
in North America and Europe, but they did not sell well in Japan.
In 2010, Sega published a sequel to the original Sonic series with Sonic the Hedgehog 4: Episode I.
On January 22, 2013, Sega acquired the Vancouver-based developer Relic Entertainment from THQ (who had recently filed for bankruptcy).[50]
On May 17, 2013, Sega announced a worldwide partnership with Nintendo for the
Sonic the Hedgehog franchise and announced that
the next three Sonic games (Sonic Lost World, Mario & Sonic at the Sochi
Olympic Winter Games and an unannounced Sonic title) will be exclusive to
Nintendo consoles.[51] The
same day, Sega Europe announced that the publishing and distribution rights for
the next three Sonic games in Europe and Australia will be handed to Nintendo.[52]
However Sega will continue to publish Sonic Lost World in North
America and Japan.
Currently, the Consumer R&D Division focuses on development of game
software for consoles, handhelds and mobiles. The division is headed by
Toshihiro Nagoshi.[53] The
Amusement R&D Division focuses on the development of game software for
arcades. The division is headed by Hiroshi Yagi