Feeds

Sega out to steal lead in console software biz

Wants 25 per cent marketshare

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

Sega has confirmed hints that the company intends to recast itself as a software and services business and move away from its traditional game console focus.

Central to the strategy is support for rival vendors' machines, a plan that's been hinted at before by Sega staffers, and made official when the company reported its latest financial results last week.

Speaking in Japan today, Sega Strategic Counsel Tetsu Kayama confirmed Sega's plan and its main goal: to boost Sega's console software marketshare to 25 per cent. Currently its code accounts for just 4.2 per cent of the market.

If it achieves that, it will overtake Nintendo's market leading 19.6 per cent share.

"We plan to expand our profit by utilizing our attractive and affluent software assets to appropriate devices," he said.

Kayama has only just joined the company, brought in to shape the company's strategy as it seeks to find a role in an increasingly competitive market. The console business was given a mighty shaking when Sony entered the arena with its PlayStation and quickly stole the market from its traditional leaders, Sega and Nintendo. PlayStation 2 will cement Sony's leadership, at least until Microsoft's X-box machine launches late next year.

Sega has fared badly against such heavyweights. Its marketshare has diminished and it has been forced to offer huge rebates on its Dreamcast console to persuade gamers to buy it. That has had a detrimental effect on the company's finances - last week it admitted that it will post a loss this financial year, instead of the profit it had predicted, thanks to the extent to which it has been subsidising Dreamcast sales.

Kayama is likely being groomed to succeed Sega president Isao Okawa, the company's chief strategist and who admitted today he is suffering from throat cancer.

It's not yet known which consoles Sega will support, but presumably it will hope to persuade vendors to cough up for exclusive launches, common in the console software business. Sega's financial report noted a joint venture project with erstwhile arch-rival Nintendo, so the GameCube has to be a prime candidate for Sega support. ®

Related Stories

True luv - Sega 4 Nintendo
Sega to turn ¥1.5bn profit to ¥22.1bn loss

Secure remote control for conventional and virtual desktops

More from The Register

next story
The Return of BSOD: Does ANYONE trust Microsoft patches?
Sysadmins, you're either fighting fires or seen as incompetents now
China hopes home-grown OS will oust Microsoft
Doesn't much like Apple or Google, either
Sin COS to tan Windows? Chinese operating system to debut in autumn – report
Development alliance working on desktop, mobe software
Linux turns 23 and Linus Torvalds celebrates as only he can
No, not with swearing, but by controlling the release cycle
Eat up Martha! Microsoft slings handwriting recog into OneNote on Android
Freehand input on non-Windows kit for the first time
Linux kernel devs made to finger their dongles before contributing code
Two-factor auth enabled for Kernel.org repositories
This is how I set about making a fortune with my own startup
Would you leave your well-paid job to chase your dream?
prev story

Whitepapers

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.
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.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
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?