Sega: an annual loss, layoffs, and resale of the Arcade subsidiary

Sega is not at his best. The group has been hit much harder by the health crisis than its peers, largely due to the dissatisfaction of their gambling halls and patchinko in Japan. The results for the quarter from July to September illustrate the ongoing catastrophe: Sega rose from 79.9 million euros in net profit to a net loss of 177 million euros (operating loss of 278 million euros)! Revenue also fell from 1.3 billion euros in the third quarter of 2019 to just 898.7 million euros in the same quarter of the current year.

To survive, the group has just announced a “voluntary departure” from 650 employees and the transfer of the operations of its subsidiary Sega Entertainment (Arcades) to Genda. In addition, managers’ salaries are being revised downwards (-10 to 30%). A world is falling apart. The recent closure of the legendary Sega Akihabara Building 2 in Tokyo heralded even darker moments. And on the game page will you tell me? The reasons for hope are weak on this side. The Total War licensed titles barely hit 2.5 million copies (for 4 games!), And the same goes for the Sonic licensed games (2.3 million copies for 4 games). If we compare these numbers with Nintendo’s, we can easily see that Sega has become a little gamer in the global joint venture today (and it’s very sad).

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