Sammy tells Sega to focus on arcade

Sammy president and CEO Hajime Satomi has told Bloomberg Japan that he wants Sega to concentrate on the arcade games business and be more strict about pouring money into loss-making home console releases, news which is likely to further inflame Sega's loyal fanbase at the end of a tumultuous week for the venerable games publisher.

Not only does Satomi-san hope Sega will increase its arcade output, but he also hopes Sega will make use of Sammy's Atomiswave system, a low-cost, cartridge-based, JAMMA-compatible arcade setup that runs on the same CPU as Sega's Dreamcast console and Naomi arcade systems. "It's low cost enough that even a single play at 10 yen a game can turn a profit," he said this week. "We can sell it in third-world countries as well."

Although the news will have Sega fans up in arms, it's only a reflection of Sammy's own focus on profit. As a business decision, the logic is plain to see. In its last reported six-month figures, Sega posted a massive loss - 2.5 billion yen - in the home console business, which was only offset by a similarly gigantic 5.6 billion yen profit in the arcade sector. Its home console titles continue to review relatively well, but Sega has clearly struggled to harness that critical momentum.

News source: Eurogamer

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