Feeds

Sega out to steal lead in console software biz

Wants 25 per cent marketshare

  • alert
  • submit to reddit

SANS - Survey on application security programs

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

Top three mobile application threats

More from The Register

next story
Ubuntu 14.04 LTS: Great changes, but sssh don't mention the...
Why HELLO Amazon! You weren't here last time
Next Windows obsolescence panic is 450 days from … NOW!
The clock is ticking louder for Windows Server 2003 R2 users
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
Half of Twitter's 'active users' are SILENT STALKERS
Nearly 50% have NEVER tweeted a word
Microsoft TIER SMEAR changes app prices whether devs ask or not
Some go up, some go down, Redmond goes silent
Batten down the hatches, Ubuntu 14.04 LTS due in TWO DAYS
Admins dab straining server brows in advance of Trusty Tahr's long-term support landing
Red Hat to ship RHEL 7 release candidate with a taste of container tech
Grab 'near-final' version of next Enterprise Linux next week
Windows 8.1, which you probably haven't upgraded to yet, ALREADY OBSOLETE
Pre-Update versions of new Windows version will no longer support patches
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.