Originally posted by: HOWITIS
alot of the gaming sites are saying as of now it is going to happen unless something changes between then and now.
Originally posted by: digitalsm
Originally posted by: HOWITIS
alot of the gaming sites are saying as of now it is going to happen unless something changes between then and now.
With a 22.4%, Sammy won't get its way. They will have to spend about another $1billion more. They'll have to do a hostile takeover. I just dont know how it makes good buisness sense to spend close to $1.5billion on a company then basically gut it.
Originally posted by: digitalsm
Originally posted by: HOWITIS
alot of the gaming sites are saying as of now it is going to happen unless something changes between then and now.
With a 22.4%, Sammy won't get its way. They will have to spend about another $1billion more. They'll have to do a hostile takeover. I just dont know how it makes good buisness sense to spend close to $1.5billion on a company then basically gut it.
Originally posted by: HOWITIS
Originally posted by: digitalsm
Originally posted by: HOWITIS
alot of the gaming sites are saying as of now it is going to happen unless something changes between then and now.
With a 22.4%, Sammy won't get its way. They will have to spend about another $1billion more. They'll have to do a hostile takeover. I just dont know how it makes good buisness sense to spend close to $1.5billion on a company then basically gut it.
sammy doesn't believe the console market will ever make money, and they do not want to enter it. they want sega's arcade brands only, and they do not want to deal with taking any of the loses that sega is known for in the consumer market. this is the only reason they bought the 22%. it is their way, or the highway.
the fact is sammy seems VERY confident that they will have no oppisition to their running of sega. their share holders would probably welcome sammy, as long as they can convince them that it means more money, which is what sammy thinks will happen by cutting sega from the consumer market and focusing on the arcades a buissness they know, and one that sega has ALWAYS made money in.
Originally posted by: Jzero
the fact is sammy seems VERY confident that they will have no oppisition to their running of sega. their share holders would probably welcome sammy, as long as they can convince them that it means more money, which is what sammy thinks will happen by cutting sega from the consumer market and focusing on the arcades a buissness they know, and one that sega has ALWAYS made money in.
For very good reason. Consoles have always been a loss-leader market, and the software for them isn't that much better. Arcades and Pachinko make more money, and businesses exist to make money.
Originally posted by: digitalsm
Originally posted by: Jzero
the fact is sammy seems VERY confident that they will have no oppisition to their running of sega. their share holders would probably welcome sammy, as long as they can convince them that it means more money, which is what sammy thinks will happen by cutting sega from the consumer market and focusing on the arcades a buissness they know, and one that sega has ALWAYS made money in.
For very good reason. Consoles have always been a loss-leader market, and the software for them isn't that much better. Arcades and Pachinko make more money, and businesses exist to make money.
The worldwide console market is around $30billion, and growing. Theres plenty of profits to be made under the right direction. Sammy is looking for a quick buck, long term its not a very wise move. And dont be fooled Sega as a company wouldnt be raking in that much more money. Sammy would be though. This helps Sammy 100 times more than it helps Sega.
Originally posted by: Jzero
Originally posted by: digitalsm
Originally posted by: Jzero
the fact is sammy seems VERY confident that they will have no oppisition to their running of sega. their share holders would probably welcome sammy, as long as they can convince them that it means more money, which is what sammy thinks will happen by cutting sega from the consumer market and focusing on the arcades a buissness they know, and one that sega has ALWAYS made money in.
For very good reason. Consoles have always been a loss-leader market, and the software for them isn't that much better. Arcades and Pachinko make more money, and businesses exist to make money.
The worldwide console market is around $30billion, and growing. Theres plenty of profits to be made under the right direction. Sammy is looking for a quick buck, long term its not a very wise move. And dont be fooled Sega as a company wouldnt be raking in that much more money. Sammy would be though. This helps Sammy 100 times more than it helps Sega.
Revenue != Profits. It's well-known that the profit margins on console hardware are VERY small, and the bulk of the money comes from software sales. Sega has already been trounced multiple times in the console market mainly by their own poor timing and marketing, and the final insult came from the vast piracy market that finally drove the Dreamcast program to destruction. In its current position, Sega is in no position to compete against the megabuck marketing machines of Microsoft, Sony and Nintendo. They just can't hack it in such a tough marketplace.
Gambling has been around forever. The invention of the slot machine revolutionized gambling into a huge moneymaker, and Pachinko is hardly different other than the fact that they have to dilly-dally around to skirt gambling laws. Pachinko hardware is cheap, easily played by anyone, and if it's anythign like slots, it rakes in the profit very quickly and requires a very small footprint.
Arcade consoles, while not as cheap or small or lucrative are still much harder to pirate. A mainstay of Sega's programming has always been astoundingly simple concepts that can be rehashed a hundred different ways, and turn into an amazing quarter-chomping monster that quickly outclasses the original Dragon's Lair. I have watched people pump tons of money into Marine Fishing, Virtua Cop, those skate/ski/bike-type games. They know how to pump out winners, and if they can pump out winners cheaper, that means more money.
Both companies stand to gain from this. The only people who lose are those of us that were fans of Sega's console offerings, and we were always a niche crowd anyway.
Originally posted by: Jzero
the fact is sammy seems VERY confident that they will have no oppisition to their running of sega. their share holders would probably welcome sammy, as long as they can convince them that it means more money, which is what sammy thinks will happen by cutting sega from the consumer market and focusing on the arcades a buissness they know, and one that sega has ALWAYS made money in.
For very good reason. Consoles have always been a loss-leader market, and the software for them isn't that much better. Arcades and Pachinko make more money, and businesses exist to make money.
You seem to think they are going to take Suzuki out behind the bulding and shoot him.they will no longer be making software either. americans will likely NEVER see another sega game, as the new sega products will be those cheap 10c arcade machines. this isn't getting out of the console market meaning no longer making hardware. this is eliminating anything in the consumer market period. along with the elimination of the 8 or so development teams at sega. good bye team sonic. good bye yu suzuki.
Who said it was good for the consumer? It's good for the ENTERPRISE. What good is a consumer base if it is running you out of business?the only way anyone sees this as good for consumer is if your not getting the point. you are unlikly to play a new sega product again.