Sega\'s Quick Recovery:

I still think the Dreamcast is still a good system, but I guess focusing on making games was more profitable.  


According to Sega COO Tetsu Kayama, the company recovered from financial peril much quicker than anticipated. As a result, Sega\'s consumer game business will post a profit this year, ahead of expectations. Speaking about the situation, Kayama-san said, \'Our restructuring efforts are bringing positive results much faster than we expected and our key consumer game sector will also likely be able to post profits this year.\'

After posting more than 0 million in losses last year, the company\'s dramatic turnaround is largely being attributed to a complete business restructuring. Thereby, Sega abandoned the hardware console business to focus exclusively on software. Moreover, the company significantly reduced the size of their arcade business and cutback overall corporate spending. When asked about Sega\'s ongoing restructuring, Kayama-san said \'I am very satisfied with what I\'ve achieved in Sega. This year\'s recovery in some areas of our businesses is just a first step. After unloading some negative factors this year, such as valuation losses in stockholdings and shakeup of overseas businesses, Sega will show further growth from the year starting April. One of our promises was to return to positive cash flow by March 2002, and I am confident we will achieve that goal.\'

Looking ahead, the future seems bright for Sega. Specifically, Sega plans to release a new line of amusement sports titles aimed at restaurants in America beginning later this year. Commenting on the future, Kayama-san said, \'I see a lot of growth potential in the overseas game market with an appropriate business strategy. So entry into these markets is our next step in overseas markets. We are also currently studying pricing strategies at the U.S. commercial machine business.\'


 Link:  http://www.xengamers.com/sections/news/6715/

While I\'m still saddened to see that Sega has left the hardware arena, it\'s great to see them turning a profit again. They\'ve always been a premier game maker, but simply couldn\'t get their consoles to sell. Hopefully now more gamers will be able to experience the goodness that is Sega, and see what they\'ve been missing all this time.

Maybe, if profits are good enough, in two or three generations Sega can make a return to the hardware side of gaming. A key to this is getting gamers hooked on their software and build up consumer confidence in their name again.

(*Still hold the candle for the "Sega Pheonix" to be released at some point in the future*)