Feeds

Sega issues ‘Dreamcast bonds’ to fund console launch

The name's Bond... Dreamcast Bond

  • alert
  • submit to reddit

Security and trust: The backbone of doing business over the internet

Sega has come up with a curious method of financing the launch of its next-generation video games console, Dreamcast -- it is selling what it calls 'Dreamcast bonds'. The Japanese company today issued Y10 billion ($81 million) of bonds, each with a three-year term and a 2.15 per cent rate. Every bond comes with a Y500 card that can be used as petrol stations and convenience stores, and offers buyers the chance to win one of 100 Dreamcast consoles or 1000 memory modules. It's a novel concept for Western IT companies, but not uncommon in Japan. Sega, which recently posted a 75.9 per cent collapse in half-year profits, makes a pile of cash up front and promises to pay bond-holders back plus interest out of the money it hopes to make out of the new console. Of course, the snag is part of the money made from these bonds will be used to pay off previous bond issues -- it has too; the company hasn't made enough money in the meantime to cover the repayments through its own profitability -- leaving the company in a potential debt spiral unless the Dreamcast generates the high level of profit Sega is gambling on. ®

New hybrid storage solutions

More from The Register

next story
Hey, Scots. Microsoft's Bing thinks you'll vote NO to independence
World's top Google-finding website calls it for the UK
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Israeli spies rebel over mass-snooping on innocent Palestinians
'Disciplinary treatment will be sharp and clear' vow spy-chiefs
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
OECD lashes out at tax avoiding globocorps' location-flipping antics
You hear that, Amazon, Google, Microsoft et al?
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.