Feeds

25 per cent of Sega staff for the chop

Colossal loss predicted for fiscal 1998 -- and 1999 doesn't look any better

  • alert
  • submit to reddit

Gartner critical capabilities for enterprise endpoint backup

Sega is to cut 1000 jobs -- 25 per cent of its workforce -- next year, following a poor set of results for the last 12 months. The games console maker yesterday warned it will post of loss of around Y45 billion for fiscal 1998, which ended on 31 March. Sega blamed lower-than-anticipated sales of consoles and software, and poor attendance at its UK and Australian video game arcades. Losses there will see the company writing off around Y33.3 billion as it withdraws its stake in those businesses; writing off inventory of the superannuated Saturn games console will add Y11.5 billion to that figure. All of which leaves the company focusing its hopes on its profitable Asian video game arcade business and sales of its 128-bit Dreamcast console. The trouble is, Dreamcast sales are way behind predictions, partly because of the difficulty chip maker NEC had manufacturing sufficient quantities of the console's graphics PowerVR processor, but also because demand for the machine is growing slowly. Sega originally hoped to shift one million Dreamcasts by the end of calendar 1998. NEC's problems forced it to put that deadline back to fiscal year end, but in the event Sega still missed its target, by 100,000 units. Demand won't be helped by Sony's canny decision to unveil its 128-bit PlayStation 2 early. Ironically, it's the original PlayStation that did for the Saturn. The Sony console isn't set to ship until the end of the year, but it will still hurt Dreamcast sales as buyers decide to wait and see how the two consoles compare. ®

The essential guide to IT transformation

More from The Register

next story
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.