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

Top 5 reasons to deploy VMware with Tegile

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. ®

Internet Security Threat Report 2014

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.