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About|the video game company|other uses|Sega (disambiguation)Use mdy dates|date=July 2011
Infobox company|company_name=Sega Corporation
??????
|company_type=Subsidiary of Sega Sammy Holdings
|foundation=Standard Games (1940);cite web|url= http://www.referenceforbusiness.com/history/Ro-Sh/SEGA-Corporation.html|title=SEGA Corporation Company Profile, Information, Business Description, History, Background Information on SEGA Corporation|accessdate=August 11, 2008|publisher=Sega|archiveurl= http://web.archive.org/web/20060503073623/ http://www.referenceforbusiness.com/history/Ro-Sh/SEGA-Corporation.html|archivedate=May 3, 2006|quote=SEGA Corporation is a developer of software and games for personal computers, wireless devices, and video-game consoles. SEGA was one of the first american video game companies, although they developed primarily in Japan. SEGA, which once ranked as one of the largest manufacturers of consoles, exited the market in 2001 and began making games for platforms marketed by Sony, Microsoft, and Nintendo. The company merged with Sammy Corporation in 2004, becoming a subsidiary of Sega Sammy Holdings Inc., the largest gaming software company in Japan. Service Games (1951)cite book|last1=Kent|first1=Steven |authorlink1=Steven L. Kent|title=The Ultimate History of Video Games: From Pong to Pokémon and Beyond- The Story That Touched Our Lives and Changed the World|accessdate=November 17, 2010|edition=First|year=2001|publisher=Prima Publishing|location=Roseville, California|isbn=0-7615-3643-4|page=305 |chapter=The Seeds of Competition in 1952
Sega Enterprises (1965)
Sega Corporation (2000)
|location= Original Office :
Ota, Tokyo , Japan

International Offices :
San Francisco, California, USA
Brentford, London, United Kingdom
Sydney, Australia
Seoul , South Korea, Vancouver
|key_people= Executives :
Hajime Satomi , CEO
Okitane Usui, President
Mike Hayes , President and CEO of Sega West

Developers :
Yu Suzuki
Takashi Iizuka (game designer)|Takashi Iizuka
|num_employees=2,600 (2009)
|industry= Video game industry|Video Games
Arcade games|Arcade Games
Third-party developer|Third Party Publisher
|products= Sonic the Hedgehog (series)| Sonic the Hedgehog series
Phantasy Star (series)| Phantasy Star series
Virtua Fighter (series)| Virtua Fighter series
Puyo Puyo (series)| Puyo Puyo series
Shining (series)| Shining series
Yakuza (series)| Yakuza series
The House of the Dead (series)| The House of the Dead series
Valkyria Chronicles| Valkyria Chronicles series
Sakura Wars| Sakura Wars series
Super Monkey Ball (series)| Super Monkey Ball series
Virtua Tennis| Virtua Tennis series
Total War (series)| Total War series
Football Manager| Football Manager series
Shinobi (series)| Shinobi series
Sega SG-1000|SG-1000
Sega Master System|Master System
Mega Drive|Mega Drive/Genesis
Sega Game Gear|Game Gear
Mega-CD
Sega 32X
Sega Saturn|Saturn
Sega Dreamcast|Dreamcast
|revenue= increase Japanese Yen|¥ 396.7& nbsp;billion (2011) US $4.9 billion
|net_income= increase Japanese Yen|¥ 41.5& nbsp;billion (2011) US $512.857 million
|parent = Sega Sammy Holdings
|homepage= http://www.sega.co.jp/ Sega Corporation (Japan)
http://www.sega.com/ Sega of America
http://www.sega-europe.com/ Sega Europe
http://www.playsega.com/ PlaySega

nihongo| Sega Corporation |??????| Kabushiki gaisha Sega, usually styled as SEGA , is a multinational corporation|multinational video game software developer and an arcade games|arcade software and arcade cabinet|hardware development company headquartered in Ota, Tokyo|Ota , Tokyo , Japan , with various offices around the world. Sega previously developed and manufactured its own brand of video game console|home video game consoles from 1983 to 2001, but a restructure was announced on January 31, 2001 that ceased continued production of its existing home console, effectively exiting the company from the home console business.cite web|title=Sega announces drastic restructuring|author=Shahed Ahmed|publisher= GameSpot |url= http://www.gamespot.com/news/2680518.html|date=January 31, 2001|accessdate=September 20, 2009 While arcade development would continue unchanged, the restructure shifted the focus of the company's home video game software development to consoles developed by various third-party manufacturers.
Sega's head offices, as well as the main office of its domestic division, Sega Corporation (Spartata), are located in Ota, Tokyo, Japan. Sega's European division, Sega Europe Ltd. , is headquartered in the Brentford area of London in the United Kingdom. Sega's North American division, Sega of America Inc. , is headquartered in San Francisco; having moved there from Redwood City, California in 1999." http://www.sega.com/corporate/ Corporate." Sega . Retrieved on January 13, 2009.Angwin, Julie and Laura Evenson. " http://www.sfgate.com/cgi-bin/article.cgi? file=/chronicle/archive/1998/06/11/BU14012.DTL Sega Expected to Move HQ To S.F. From Redwood City." San Francisco Chronicle . Thursday June 11, 1998. Retrieved on January 13, 2009. Sega Australia is headquartered in Sydney, and Sega Publishing Korea is headquartered in Jongno , Seoul , Korea . The company also has smaller offices in France , Germany , the Netherlands , Spain , and Italy .

History


Company Origins (1940–1982)



Sega's roots can be traced back to a huge company based in Honolulu, Hawaii named Service Games, which began operations in 1940. In 1951, Raymond Lemaire and Richard Stewart moved the company to Tokyo, Japan to develop and distribute coin-operated amusement-type games such as jukeboxes and slot machines. Within a few years Service Games began importing these machines to American military bases throughout Japan.

In 1954, David Rosen, an American officer in the Air Force, launched a two-minute photo booth business in Tokyo. This company eventually became Rosen Enterprises, and in 1957 began importing coin-operated games to Japan. By 1965, Rosen Enterprises grew to a chain of over 200 arcades, with Service Games its only competitor. Rosen then orchestrated a merger between Rosen Enterprises and Service Games, who by then had their own factory facilities, becoming chief executive of the new company, Sega Enterprises, which derived its name from the first two letters of SE rvice GA mes.cite web|url= http://www.fundinguniverse.com/company-histories/Sega-of-America-Inc-Company-History.html|title=SEGA History|accessdate=May 11, 2011|publisher=FundingUniverse|quote=Sega of America, based in San Francisco, California, was established in 1986 as the wholly owned subsidiary of Sega Corporation of Japan. However, its rich history of gaming goes back 50 years.

Within a year, Sega began the transition from importer to manufacturer, with the release of the Rosen designed submarine simulator game Periscope . The game at that time sported innovative light and sound effects, eventually becoming quite successful in Japan. It was soon exported to both Europe and the United States, becoming the world's first 25 cent arcade game .

In 1969, Rosen sold Sega to Gulf+Western|Gulf & Western Industries , remaining on however as CEO of the Sega division. Under Rosen's leadership, Sega continued to grow and prosper, and in 1972 G& W made Sega Enterprises a subsidiary, and took the company public. Sega prospered heavily from the Golden age of video arcade games|arcade gaming boom of the late 1970s, with revenues climbing to over $100& nbsp;million by 1979.

Entry into the home console market (1982–1989)



In 1982, Sega's revenues would eclipse $214& nbsp;million, and they introduced the industry's first three-dimensional game, SubRoc-3D|SubRoc 3D . The following year, an overabundance of arcade games led to the video game crash of 1983|video game crash , causing Sega's revenues to drop to $136& nbsp;million. Sega then pioneered the use of laser disks in the video game Astronbelt , and designed and released its first home video game console, the Sega SG-1000|SG-1000 . Despite this, G& W sold the U.S. assets of Sega Enterprises that same year to pinball manufacturer Bally Technologies|Bally Manufacturing Corporation , and in January 1984 Rosen resigned his post with the company. He was replaced by Hayao Nakayama, who had been serving as the head of Sega's Japanese operations after his own company, Esco Boueki (Esco Trading) was acquired by Sega in 1979." http://www.nytimes.com/1993/07/04/business/sega-takes-aim-at-disney-s-world.html? pagewanted=4 Sega Takes Aim at Disney's World (Page 4 of 4)" The New York Times by Andrew Pollack: Sunday, July 4, 1993

The Japanese assets of Sega were purchased for $38& nbsp;million by a group of investors led by Rosen and Hayao Nakayama, a Japanese businessman who owned Esco Boueki (Esco Trading) an arcade game distribution company that had been acquired by Rosen in 1979. Nakayama became the new CEO of Sega, and Rosen became head of its subsidiary in the United States.

In 1984, the multibillion dollar Japanese conglomerate CSK Holdings Corporation|CSK bought Sega, renamed it to Sega Enterprises Ltd., headquartered it in Japan, and two years later, shares of its stock were being traded on the Tokyo Stock Exchange . David Rosen's friend, Isao Okawa , the chairman of CSK, became chairman of Sega.

In 1986, Sega of America was poised to take advantage of the resurgent video game market in the United States.

Sega would also release the Sega Master System and the first Alex Kidd game, who would be Sega's unofficial mascot until 1991, when Sonic the Hedgehog (character)|Sonic the Hedgehog took over. While the Master System was technically superior to the Nintendo Entertainment System|NES ,cite web|url= http://classicgaming.gamespy.com/View.php? view=ConsoleMuseum.Detail& id=28& game=10 |title=Sega Master System (SMS) – 1986–1989 – Classic Gaming |publisher=Classicgaming.gamespy.com |accessdate=February 23, 2011 it failed to capture market share in North America and Japan due to highly aggressive strategies by Nintendo and ineffective marketing by Tonka in the United States. It performed somewhat better, however, in the UK, Australia, New Zealand, and Brazil.

Bigger home console manufacturer (1989–2001)


Mega Drive


Main|Sega GenesisWith the introduction of the Sega Genesis, the American release of the Sega Mega Drive, Sega of America launched an anti- Nintendo campaign to carry the momentum to the new generation of games, with its slogan "Genesis does what Nintendon't." This was initially implemented by Sega of America President Michael Katz.
cite web|url= http://www.sega-16.com/feature_page.php? id=103& title=Interview:%20Michael%20Katz|title=Interview: Michael Katz|author=Ken Horowitz|publisher=Sega-16.com|accessdate=March 28, 2009|date=April 28, 2006
When Nintendo launched its Super Nintendo Entertainment System in 1991, Sega changed its slogan to "Welcome to the next level."

The same year, Sega of America's leadership passed from Michael Katz to Tom Kalinske, who further escalated the " console wars|console war " that was developing.
cite web|url= http://www.sega-16.com/feature_page.php? id=245& title=Tom%20Kalinske:%20American%20Samurai|title=Tom Kalinske: American Samurai|author=Ken Horowitz|publisher=Sega-16.com|accessdate=March 28, 2009|date=February 18, 2005
As a preemptive strike against the release of the SNES, Sega re-branded itself with a new game and mascot, Sonic the Hedgehog (character)|Sonic the Hedgehog . With his hip attitude and style, he was marketed to seem "cooler" than Mario , Nintendo's mascot.cite web|url= http://www.ce2.coos-bay.k12.or.us/Studentwebs/Danny/90s.htm|title=The 1990's|publisher=Ce2.coos-bay.k12.or.us|accessdate=February 23, 2011 This shift led to a wider success for the Genesis and would eventually propel Sega to 65% of the market in North America for a brief time. Simultaneously, after much previous delay, Sega released the moderately successful Mega-CD as an add-on feature, allowing for extra storage in games due to their CD-ROM format, giving developers the ability to make longer, more sophisticated games, the most popular of which was Sega’s own Sonic CD .cite web|url= http://www.gamespot.com/games.html? type=games& platform=1002|title=Top Sega CD Games – Best Sega CD Video Games – Best Sega CD Games – Top Sega CD Video Games |publisher=Gamespot.com|accessdate=February 23, 2011 Sonic the Hedgehog 2 (16-bit)|Sonic the Hedgehog 2 was also released at this time, and became the most successful game Sega ever made,cite web|url= http://www.gamasutra.com/view/feature/1851/a_detailed_crossexamination_of_.php|title=Gamasutra – Feature – A Detailed Cross-Examination of Yesterday and Today's Best-Selling Platform Games|accessdate=February 14, 2011|last=Boutros|first=Daniel|date=August 4, 2006|work= United Business Media|UBM |publisher=Gamasutra
selling six million copies as of June 2006.

In 1994, Sega released the Sega 32X in an attempt to upgrade the Mega Drive|Mega Drive to the standards of more advanced systems. It sold well initially, but had problems with lack of software and hype about the upcoming Sega Saturn and Sony 's PlayStation .cite web|url= http://www.thegameconsole.com/videogames94.htm |title=A History of Home Video Games from Atari to Xbox, Playstation and Wii|publisher=Thegameconsole.com|accessdate=February 23, 2011 Within a year, it was in the bargain bins of many stores.cite web|url= http://www.planetdreamcast.com/about/sega/ |title=PlanetDreamcast: About – Sega History |date=June 16, 2008|accessdate=February 23, 2011|archiveurl= http://web.archive.org/web/20080616093349/ http://www.planetdreamcast.com/about/sega/ |archivedate=June 16, 2008 Also in 1994, Sega launched the Sega Channel , a subscription gaming service delivered by local cable companies affiliated with Time-Warner Cable , or TCI, through which subscribers received a special cartridge adapter that connected to the cable connection. At its peak, the Sega Channel had approximately 250,000 subscribers.cite web|last=Buchanan|first=Levi |url= http://retro.ign.com/articles/880/880968p1.html|title=The SEGA Channel – Retro Feature at IGN|publisher=Retro.ign.com|date=June 11, 2008|accessdate=February 23, 2011

Sega versus Accolade


In 1992, Sega lost the Sega v. Accolade case, which involved independently produced software for the Sega Mega Drive/Genesis console. Accolade (company)|Accolade had copied a small amount of Sega's code to achieve compatibility with the Sega Genesis platform. The verdict set a precedent that copyright s do not extend to non-expressive content in software that a system requires to be present to run the software.cite web|url= http://cse.stanford.edu/class/cs201/projects-99-00/intellectual-property-law/reverse_engineering.htm |title=Reverse Engineering |date=June 11, 2007 |accessdate=February 23, 2011 |archiveurl= http://web.archive.org/web/20070611160338/ http://cse.stanford.edu/class/cs201/projects-99-00/intellectual-property-law/reverse_engineering.htm |archivedate=June 11, 2007 The case in question stems from the nature of the console video game market. Hardware companies often sell their systems at or below cost, and rely on other revenue streams such as in this case, game licensing. Sega was attempting to "lock out" game companies from making Mega Drive games unless they paid Sega a fee (something its competition has done in the past). Their strategy was to make the hardware reject any cartridge that did not include a Sega trademark. If an unlicensed company included this trademark in their game, Sega could sue the company for trademark infringement. Though Sega lost this lawsuit, all later Sega systems seemed to incorporate similar hardware requirements.

Saturn


Main|Sega SaturnOn May 11, 1995, Sega released the Sega Saturn (with Virtua Fighter (arcade game)|Virtua Fighter ) in the American market, which utilized two 32-bit processors and preceded both the Sony PlayStation and the Nintendo 64 . However, poor sales in the West (including the traditional stronghold markets in Europe) led to the console being abandoned. The lack of a strong Sonic title (and titles based on other Genesis franchises) and its high price point in comparison to the PlayStation were among the reasons for the failure of the console."What Hath Sonic Wrought? Vol. 10." Buchanan, Levi. IGN. February 2, 2009. http://retro.ign.com/articles/950/950189p1.html "There are a number of reasons why the SEGA Saturn failed. The botched surprise launch. Lack of third-party support. And while the lack of a true Sonic sequel for the Saturn certainly didn't wholly destroy the console's chances, the lack of appearances by the SEGA mascot sure didn't help matters much. Nintendo had proven up to this generation the value of launching with a mascot game. The accelerated launch isn't to blame for the critical oversight, either. During its truncated lifecycle, the Saturn hosted not one Sonic platformer." Notable titles include several titles exclusive to the Japanese market, like Radiant Silvergun and Sakura Wars|Sakura Taisen , involving fighting games like Last Bronx , rail shooters, such as Panzer Dragoon and The House of the Dead (video game)|The House of the Dead and a few well regarded RPGs; Panzer Dragoon Saga , Grandia , Albert Odyssey: Legend of Eldean , Shining Force 3 , Dragon Force , Shining Wisdom , Shining the Holy Ark and Magic Knight Rayearth

In 1997, Sega entered into a short-lived merger with Bandai . However it was later called off, citing "cultural differences" between the two companies.cite web|last=Johnston |first=Chris |url= http://www.gamespot.com/news/2466444.html |title=Sega, Bandai Merger Canceled – News at GameSpot |publisher=Gamespot.com |date=May 27, 1997 |accessdate=February 23, 2011 Entertainment fun center GameWorks was founded in 1997 as well as the now defunct Sega World theme parks.

Dreamcast


Main|DreamcastOn November 27, 1998, Sega launched the Dreamcast game console, Sega's final console, in Japan. The Dreamcast was competitively priced, partly due to the use of off-the-shelf components, but it also featured technology that allowed for more technically impressive games than its direct competitors, the Nintendo 64 and PlayStation . An analog 56k modem was also included, allowing gamers to play multi-player games online on a home console for the first time, featuring titles such as the action-puzzle title Chu Chu Rocket , Phantasy Star Online , the first console-based Massively multiplayer online role-playing game|MMORPG , and the innovative Alien Front Online , the first console game with online voice chat.

The Dreamcast 's launch in Japan was a failure. Launching with a small library of software and in the shadow of the upcoming PS2, the system would not gain great success, despite several successful games in the region. The Western launch a year later was accompanied by a large amount of both first-party and third-party software and an aggressive marketing campaign. It was extremely successful and earned the distinction of "most successful hardware launch in history," selling a then-unprecedented 500,000 consoles in its first week in North America.cite web|url= http://www.vidgame.net/SEGA/DC.html|title=Vidgame.net: Sega Dreamcast (archive.org|accessdate=February 23, 2011|archiveurl= http://web.archive.org/web/20080213224518/ http://www.vidgame.net/SEGA/DC.html|archivedate=February 13, 2008 On November 1, 2000, Sega changed its company name from Sega Enterprises, Ltd to Sega Corporation. " http://sega.jp/corp/release/2000/1101_1/ Sega Enterprises, Ltd. Changes Company Name". November 1, 2000 – Sega Corporation. Sega was able to hold onto this momentum in the US almost until the launch of Sony's PlayStation 2 . The Dreamcast is home to several innovative and critically acclaimed games of the time, including one of the first cel-shaded titles, Jet Set Radio ( Jet Grind Radio in North America); Seaman (video game)|Seaman , a game involving communication with a fish-type creature via microphone; a rhythm game involving the use of maracas, Samba de Amigo ; and Shenmue , an adventure game of vast scope with open world|freeform gameplay and a striking attempt at creating a detailed in-game city. Despite receiving critical acclaim, these titles failed to garner much public attention in the face of the upcoming PlayStation 2 launch.

Faced with debt and competition from Sony, Nintendo, and Microsoft, Sega discontinued the Dreamcast hardware in 2001. The final game Sega released for it was Puyo Puyo Fever in 2004.

Shift to third-party software developer (2001–2005)


In late 1999, Sega Enterprises Chairman Isao Okawa spoke at an Okawa Foundation meeting, saying that Sega's focus in the future will shift from hardware to software, but adding that they were still fully behind the Dreamcast. On January 23, 2001 a story ran in Nihon Keizai Shimbun that said Sega was going to cease production of the Dreamcast and develop software for other platforms.
cite web|title=Sega Sinks Console Efforts? |author=Brandon Justice|publisher=IGN |url= http://dreamcast.ign.com/articles/090/090435p1.html |date=January 23, 2001
After the initial denial, Sega Japan then put out a press release confirming they were considering producing software for PlayStation 2 and Game Boy Advance as part of their "New Management Policy".cite web|title=?????????????????????????|publisher=Sega|url= http://sega.jp/corp/release/2001/0124/|date=January 24, 2001cite web|title=Sega Confirms PS2 and Game Boy Advance Negotiations|author=Anoop Gantayat|publisher=IGN|url= http://dreamcast.ign.com/articles/090/090442p1.html|date=January 23, 2001 Then on January 31, 2001, Sega of America officially announced they were becoming a third-party software publisher.
The company has since developed primarily into a platform-neutral software company, known as a "third-party publisher", that creates games that will launch on a variety of game consoles produced by other companies, many of their former rivals, the first of which was a port of ChuChu Rocket! to Nintendo's Game Boy Advance .

Arcade cabinet|Arcade units are still being produced, first under the Sega NAOMI name, and then with subsequent releases of the Sega NAOMI 2 , Sega Hikaru , Sega Chihiro , Triforce (arcade system board)|Triforce (in collaboration with Nintendo and Namco ), Sega Lindbergh , and more recently, List of Sega arcade system boards#RingEdge|RingEdge .


The shift to software development affected Sega's Australian operations. Sega Ozisoft ceased to operate in its current form with Sega Enterprises selling its share in Sega Ozisoft and was bought over by Infogrames in 2002. This led to Infogrames having an Australian presence for the first time but decided to change the company name for its Australian operations to GameNation. Sega then went to find an Australian distributor, and made a deal with THQ Asia Pacific, who at the time until 2006 had deals with Capcom. In 2003 GameNation was changed to Atari Australia and then challenged THQ Asia Pacific to the distribution rights to Sega's IP's in Australia but failed. In early 2008 Sega Corporation announced that Sega would re-establish an Australian presence, effectively ending THQ's distribution of Sega's products in Australia and would be a subsidiary of Sega of Europe, rather than being a separate local subsidiary like Atari Australia , Nintendo Australia and THQ Asia Pacific.

In August 2003, Sammy bought the outstanding 22% of shares that CSK had,cite news|first=Hirohiko|last=Niizumi|coauthors=Tor Thorsen|title=Sammy merging with Sega|date=May 18, 2004|url= http://www.gamespot.com/news/2004/05/18/news_6098677.html|work= GameSpot |accessdate=February 18, 2011|quote=$1.45& nbsp;billion deal will see the Sonic publisher become a subsidiary of a new Sammy-controlled company. and Sammy chairman Hajime Satomi became CEO of Sega. With the Sammy chairman at the helm of Sega, it has been stated that Sega's activity will focus on its profit-making arcade business rather than its loss-making home software development. In late December, Sega released Sonic Heroes selling over 2 million copies. It was the first multi-platform Sonic game, with identical versions on the Xbox , the PlayStation 2, and the GameCube .

During mid-2004, Sammy bought a controlling share in Sega Corporation at a cost of $1.1& nbsp;billion, creating the new company Sega Sammy Holdings , one of the biggest game manufacturing companies in the world. With the merger, Sega reabsorbed its second party studios and began to reorganize them. Tetsuya Mizuguchi , father of Sega Rally and Space Channel 5 , cited the changes in the corporate culture after the Sega-Sammy merger.Kikizo Staff. http://archive.videogamesdaily.com/features/tetsuya_mizuguchi_iv_oct05_p1.asp Tetsuya Mizuguchi Interview 2005. October 13, 2005. Retrieved August 13, 2008.

On January 25, 2005, Sega's Visual Concepts , a studio Sega dubbed a "1.5" developer, was sold to Take-Two Interactive . Sega used the parlance "1.5" as a mid-point of sorts between first-party and second-party developer status: that is, a wholly owned studio that would otherwise be known as a first-party developer, but was outside of internal development teams. Visual Concepts was known for many Sega Sports games including the ESPN NFL Football series, formerly NFL2K . The sale also came with Visual Concept's wholly owned subsidiary Kush Games . Take Two subsequently announced the start of the publishing label 2K Games because of this purchase.

Current status (2005–present)


By the end of 2005, Sega experienced strong earnings growth across multiple divisions. Contributing to the company's success were strong pachinko sales,cite web|url= http://www.segasammy.co.jp/english/pdf/release/Notice070206-Adjustment%20_2_.pdf|date=February 7, 2006|title=Notice of Adjustment to the Forecast of Whole-Year Operating Results and sales of software titles Yakuza (video game)|Ryu Ga Gotoku (known as Yakuza (series)|Yakuza outside of Asia) and Mushiking .

In an effort to appeal to western tastes, they partnered with Obsidian Entertainment to develop a new role-playing game (video games)|RPG for the PlayStation 3 , Xbox 360 , and PC based on the Alien (franchise)| Aliens franchise , which was subsequently cancelled.
cite web|url= http://www.gamesindustry.biz/articles/sega-signs-obsidian-for-next-generation-rpg|title=SEGA signs Obsidian for next-generation RPG|date=March 23, 2006|author=Tom, Bramwell
The partnership was the latest in a series of collaborations with western video game studios, including Monolith Productions ( Condemned: Criminal Origins ), Bizarre Creations ( The Club (video game)| The Club ), and Silicon Knights (who have yet to announce their project with Sega).
That desire to have a more Western appeal for Sega was shortly followed up by Sega acquiring British developer Sports Interactive after a successful run of publishing Football Manager 2005 and 2006 , in which they managed to sell 1.5& nbsp;million copies,
cite web|url= http://www.gamesindustry.biz/articles/sega-acquires-sports-interactive|title=SEGA acquires Sports Interactive|date=April 4, 2006|author=Tom, Bramwell
the deal was said to be worth in the region of pound sterling|£ 30& nbsp;million ($52& nbsp;million) by Miles Jacobson, Sports Interactive’s Managing Director.cite web|url= http://www.gamesindustry.biz/articles/sega-deal-is-worth-circa-gbp-30m-sports-interactive-boss|title=Sega deal is worth "circa GBP 30m" – Sports Interactive boss //|publisher=Gamesindustry.biz|date=October 1, 2010 |accessdate=February 23, 2011 This was, however, not the only developer Sega acquired, as they also purchased American developer Secret Level. Although the terms of the deal were not disclosed,cite web|url= http://www.gamesindustry.biz/articles/sega-establishes-new-internal-development-arm-in-us|title=SEGA establishes new internal development arm in US //|publisher=Gamesindustry.biz|date=October 1, 2010|accessdate=February 23, 2011 Secret Level had begun work before being bought by Sega to “recreate a classic Sega franchise" for the PS3 and Xbox 360 in July 2005, which was revealed to be Golden Axe: Beast Rider later that year.
While Sega continued its expansion in the West, on May 8, 2006, it was announced that Sega of Japan had begun helping famed Sega developer and Sonic Team head Yuji Naka (known for being the main programmer for the original Sonic the Hedgehog (series)|Sonic the Hedgehog games and Nights into Dreams... ) to start up his own company titled " Prope " (Latin for "beside" and "near future")cite web|url= http://prope.jp/|title=??????? ?????|publisher=Prope.jp|accessdate=February 23, 2011 in which Sega helped provide 10% startup capitalcite web|url= http://www.gamesindustry.biz/articles/sonic-creator-sets-up-new-studio-with-help-from-sega|title=Sonic creator sets up new studio with help from SEGA //|publisher=Gamesindustry.biz|date=October 1, 2010|accessdate=February 23, 2011 and have the option to publish games produced from the studio if they wished to.

Due to the continued success of Sega’s software sales, the company reported on May 17, 2006 a 31% rise in net profits from that of the previous year of the period ending March 31, 2006, being posted at ¥66.2& nbsp;billion ($577& nbsp;million), as well as an increase in operating profit growing by 13% from the previous year, being posted at ¥553.2& nbsp;billion ($4.82& nbsp;billion). http://www.segasammy.co.jp/english/pdf/release/tanshin_english_final.pdf Notable titles to have helped Sega increase profits in the West, such as Shadow the Hedgehog (video game)|Shadow the Hedgehog (which sold over a million copies)cite web|url= http://www.gamesindustry.biz/articles/sega-sammy-reports-31-per-cent-rise-in-profits|title=Sega Sammy reports 31 per cent rise in profits //|publisher=Gamesindustry.biz|date=May 17, 2006|accessdate=February 23, 2011 and Sonic Riders , while in Japan, games such as Yakuza , Mushiking , and Brain Trainer Portable continued to have strong sales.

Although Sega seemed poised to continue increasing profits, the company reported a massive drop of 93% profits for the period ending June 30, 2006 compared to the same period the previous year. Net income for the company dropped from $98.3& nbsp;million (a year earlier) to $7.12& nbsp;million for this period as well as total sales dropping from $926.5& nbsp;million to $809.1& nbsp;million, http://www.segasammy.co.jp/english/pdf/release/200703_1q_e.pdf Sega reported that the decrease in profits was due to no significant big releases by its slot machine division.

Despite this, Sega reported in November a massive 52% rise in profits for the periods between April and September 2006, compared to the same period last year. http://www.segasammy.co.jp/english/pdf/release/200609tanshin_englishver_1110.pdf Software sales for the company had also increased with 5.75& nbsp;million. Of those units, 1.76& nbsp;million were sold in Japan, 1.59& nbsp;million in Europe, 2.36& nbsp;million in the US, and 30,000 in other regions.cite web|url= http://www.gamesindustry.biz/articles/sega-sammy-bolstered-with-52-per-cent-profits-rise|title=Sega Sammy sees 52 per cent profits rise //|publisher=Gamesindustry.biz|date=November 13, 2006|accessdate=February 23, 2011 a number of titles were said to have performed well, in particular Super Monkey Ball: Touch & Roll for the Nintendo DS and Football Manager 2006 for the Xbox 360 having sold well. While Sega performed better in 2006, they had slashed their forecasts for the year ending March 2007 by 20% with an anticipated profit of $536.7& nbsp;million, down from the initial profits of $656.7& nbsp;million.

On August 26, 2007, IGN Australia announced that Sega would re-establish itself in Australia, ending THQ Asia Pacific's distribution of Sega products in Australia. Sega Australia has a very close relationship with Nintendo Australia , despite Sega Ozisoft and NAL previously being rivals in the Australian gaming market. Sega Australia currently do not distribute in New Zealand, instead like most other Australian publishers, they opt to let retailers take care of the distribution e.g. EB Games Australia and Kmart .

Continuing to prepare more games for the Western market, Sega was able to bridge a partnership with New Line Cinema in September to develop a game for the movie tie-in game The Golden Compass cite web|url= http://www.sega-europe.com/en/NewsStory/1293.htm|title=SEGA|date=November 9, 2006|accessdate=February 23, 2011|archiveurl= http://web.archive.org/web/20061109161314/ http://www.sega-europe.com/en/NewsStory/1293.htm|archivedate=November 9, 2006 and also partnered themselves with Fox to develop two new games based on the Alien (franchise)|Alien franchise.cite web|url= http://aliens.sega-europe.com/en/index.html|title=ALIENS|publisher=Aliens.sega-europe.com |accessdate=February 23, 2011 Sega then assigned critically acclaimed developers Gearbox software to develop a first person shooter ( Aliens: Colonial Marines ) and Obsidian Entertainment to develop an RPG based on the popular film franchise for the PlayStation 3 , Xbox 360, and PC. The latter was cancelled for undisclosed reasons by Sega. However, as of January 2011, Aliens: Colonial Marines is still in production by Gearbox. Sega has also been publishing games from independent studios (such as Platinum Games ), and is currently considering turning them into franchises.

Sega has also designed an online flash game site dubbed "PlaySEGA," which includes both original games and ports of classic games, with retro Sonic games being promised in the long run.cite web|author=Sega Europe – Online Services|url= http://playsega.com/|title=PlaySEGA|publisher=PlaySEGA|accessdate=February 23, 2011 Users of this site earn various amounts of "PlaySEGA Rings", which they can use to customize and house their avatar or enter weekly cash drawings.

In September 2009, evidence was uncoveredcite web|author=bbonline Newbie|url= http://www.casinolistings.com/news/2009/09/sega-online-casino-and-poker-rumours-confirmed|title=Sega online casino and poker rumours confirmed|publisher=Casinolistings.com|date=September 21, 2009|accessdate=February 23, 2011 that suggests Sega is expanding into the online gambling sector with the launch of an online SEGACasino|casino and SEGAPoker|poker room in October 2009. In 2010, Sega published a sequel to the original Sonic series with Sonic The Hedgehog 4: Episode I .

Games in development


  • Virtua Fighter 5|Virtua Fighter 5: Final Showdown ( Xbox Live Arcade , PlayStation Network )

  • London 2012 (video game)|London 2012 ( Xbox 360 , PlayStation 3 , Personal computer|PC )

  • Super Monkey Ball (series)|Super Monkey Ball: Banana Splitz ( PlayStation Vita )

  • Jet Set Radio (Xbox Live Arcade, PlayStation Network, Microsoft Windows )

  • Arkedo Studio|Hell Yeah& #33; Wrath of the Dead Rabbit (PlayStation Network, Xbox Live Arcade, PC)

  • Sonic_the_Hedgehog_4#Episode_II_2|Sonic the Hedgehog 4 Episode II ( Windows Phone 7 , Android (operating system)|Android )

  • Anarchy Reigns (Xbox 360, PlayStation 3)

  • Sonic & All-Stars Racing Transformed (Xbox 360, PlayStation 3, Nintendo 3DS , PlayStation Vita, PC)

  • Phantasy Star Online 2 (PC, PlayStation Vita, iOS , Android (operating system)|Android )

  • Aliens: Colonial Marines (Xbox 360, PlayStation 3, Wii U , PC)

  • The Cave (video game)|The Cave (PlayStation Network, Xbox Live Arcade, PC)


  • Software studios


    See also|List of Sega software development studios|List of Sega audio studios
    Currently, the Consumer R& D Division focuses on development of game software for consoles, handhelds and mobiles. The division is headed by Toshihiro Nagoshicite web|url= http://www.segasammy.co.jp/english/pdf/release/20090331_e_.pdf|title=Sega Sammy Notice of Personnel and Organizational Changes|first= Hajime|last= Satomi|date= March 31, 2009 The Amusement R& D Division focuses on the development of game software for arcade and slot machines. The division is headed by Hiroshi Yagi.

    | SEGA Studios
    Consumer Entertainment R& D Division
  • Sonic Team – Sonic the Hedgehog (series)|Sonic the Hedgehog series, Nights into Dreams , Phantasy Star Online , Puyo Puyo series, Burning Rangers ,
  • New Entertainment R& D Dept. – Yakuza (series)|Yakuza series, Super Monkey Ball series,
  • Yakuza Studio – Binary Domain , Yakuza 5 , Yakuza Black Panther Sequel ,
  • SEGA Sports R& D – Mario and Sonic at the Olympic Winter Games , Mario and Sonic at the Olympic Games , Virtua Striker 4 ,
  • Mobile Contents Development Dept –
  • Amusement R& D Division
  • AM Software R& D Dept. 1 – Valkyria Chronicles series, The House of the Dead (series)|The House of the Dead series,
  • AM Software R& D Dept. 2 – Virtua Fighter (series)|Virtua Fighter series, Daytona USA (video game)|Daytona USA series, After Burner series, Out Run series, Virtua Cop series, Shenmue series,
  • AM Software R& D Dept. 3 – Initial D series, Crazy Taxi series, Virtual On series, Virtua Tennis series,
  • Family Entertainment R& D Dept. –
  • Acquired Studios
  • The Creative Assembly – Total War (series)|Total War series, Viking Battle for Asgard ,
  • SEGA Studios Australia – London 2012 (video game)|London 2012 ,
  • Sports Interactive – Football Manager series,
  • Three Rings Design – Doctor Who: Worlds in Time ,
  • Hardlight -


  • Company personnel



    Corporate executives


    Japanese


  • Okitane Usui: President of Sega Japan (2008-present)

  • Hayao Nakayama : cofounder, president SOJ (1984–1998)

  • Shoichiro Irimajiri : president SOJ (1998–2000)

  • Isao Okawa : President SOJ (2000–2001) (died shortly after Dreamcast was discontinued, forgave the debts Sega owed him, and gave the company his $695& nbsp;million worth of Sega and CSK stock to Sega Corporation.)cite book|last=Kent|first=Steven|authorlink=Steven L. Kent|title=The Ultimate History of Video Games: From Pong to Pokémon and Beyond- The Story That Touched Our Lives and Changed the World|year=2001|edition=First|publisher=Prima Publishing|location=Roseville, California|isbn=0-7615-3643-4|page=589|chapter=Three Horses and a Pony|quote=In his last days, Okawa forgave Sega's debts to him and returned all of his shared of Sega and CSK stock as a gift-in Sega's case, a $695& nbsp;million gift that would help the company survive the transition of becoming a mulitplatform software manufacturer.

  • Hisao Oguchi: President SOJ (2001–2004)


  • North American


  • Mike Hayes : President of Sega of America (2009-present)

  • Charles Hawk: former vice president of strategy and corporate affairs

  • Simon Jeffery : recruited from LucasArts, Simon Jeffery President SOA (2003–2009)

  • Zachary Brown: executive producer of Billy Hatcher and the Giant Egg as well as head writer for Sonic Colors

  • Tom Kalinske : president SOA (1991–1996), former board member (1990s)

  • Michael Katz: president SOA (1989–1991)

  • Peter Moore (business)|Peter Moore : vice president (199X–1999) President SOA (1999–2003)

  • David Rosen (business)|David Rosen : cofounder, board member

  • Scott Steinberg: vice president of marketing SOA (2003–2007)

  • Bernie Stolar : recruited from Sony, President SOA (1996–1999)

  • Aaron Bannerman: CEO (2007–2009)

  • Bruce Lowry: President SOA (1986–1988)cite web|url= http://www.linkedin.com/pub/bruce-lowry/9/391/bb7 |title=Bruce Lowry |publisher=LinkedIn |accessdate=February 23, 2011


  • European


  • Mike Hayes : President of Sega of Europe (2009-present)

  • Robert Deith: cofounder/chairman Sega Europe (1991–2001)

  • Paul Williams: Sega Amusements Ltd CEO (heretofore)


  • Australian


  • Jonathan Clavin: Former Sega President of Australian Intercontinental Operations (1987–2001)

  • Darren MacBeth: Managing Director of Sega Australia 's operations.cite web|url= http://www.ieaa.com.au/members/ieaa-members-profiles_Sega.pdf|title=IEAA Report on Sega Australia|format=PDF|accessdate=February 23, 2011|archiveurl= http://web.archive.org/web/20080719105924/ http://www.ieaa.com.au/members/ieaa-members-profiles_Sega.pdf|archivedate=July 19, 2008

  • Vispi Bhopti: PR for Sega Australia Pty Ltd and former Nintendo Australia PR.


  • Korean


  • Yasutaka Sato : President SPK (2005–2008)

  • Kazunobu Takita: President SPK (2008–2011)

  • Tooru Matsuo: President SPK (2011–present)


  • Research & Development


    Hardware Division


  • Hideki Sato Head of Sega Away Team (1985–2001) (also called Sega Hardware Team R& D)


  • Video Game Software Division


  • Toshihiro Nagoshi : head of NE R& D 1, also known as CS1 Team.

  • Mie Kumagai : head of AM R& D 3, only studio with a female HOD.

  • Yuji Naka : cocreator of company mascot, owner of development studio Prope .

  • Yu Suzuki : head of New Entertainment R& D 2, also called DigitalRex.


  • Seal of Quality


    The Sega Seal of Quality was an icon placed on the packaging of all video games that had Sega's official approval to be played on a Sega console system. As was the case with the Nintendo Seal of Quality , the intention behind the "seal" was to avoid the mistakes that led to the Video Game Crash of 1983 by ensuring that games were compatible with the intended Sega console system, and to censor content that Sega felt was inappropriate for their image.

    The Sega Seal of Quality was an icon that Sega put on its own video games along with certain video games published by a third party software developer. As was the case with the Nintendo Seal of Quality , the Sega seal appeared on a video game's box and marketing as a means of informing the consumer that Sega had previewed the game before its release to ensure that the game was fully compatible for its intended home console system, and had met a certain level of Sega's standard of quality (in terms of graphics, sound, challenge, and possible offensive content). However, the Sega Seal of Quality was otherwise very different than the Nintendo Seal of Quality.

    Sega never required a third-party software developer to earn the official Sega Seal of Quality as a precondition for publication, although most developers chose to do so. Furthermore, a game could earn the seal even if it contained certain themes that its bigger competitor, Nintendo, would have prohibited: blood, scantily clad female villains, and graphic violence. Hence, the Sega Seal of Quality was given out to Sega Genesis games that depicted blood ( Splatterhouse 2 , Techno Cop ), and scantily clad females ( Streets of Rage , Final Fight CD ).

    Video games released on a Sega home console system were still censored for other taboo or controversial depictions; i.e. profanity , nudity , prostitution, homosexuality. However, this was done by the software developer and not as a requirement issued by Sega to the developer.

    In 1993, Sega of America permitted Acclaim Entertainment|Acclaim to keep the graphic violence and gore in its port of Midway Games|Midway 's popular arcade game titled Mortal Kombat (video game)|Mortal Kombat . As this game and other games sparked a national controversy over the violent content in video games, Sega created the Videogame Rating Council to give a descriptive rating to every game sold on a Sega home console system in the United States. This rating, along with the seal, would appear on the game's box and marketing. The Videogame Rating Council was phased out in 1994 with the adoption of the industry wide Entertainment Software Ratings Board .

    Sega gradually shifted the scope of their seal of quality to focus less on content and more on assuring consumers that a game was fully compatible with its intended home console system. The Sega Seal is no longer seen on any games as Sega stopped producing games consoles, home or handheld, after the discontinuation of the Dreamcast in March 2001.

    Advertisement campaigns


    Sega has had a long history of different slogans and ad campaigns.

    Arcade


  • The Arcade Experts. (early '80s)


  • Master System


  • The challenge will always be there.

  • Major fun and games!

  • Now, there are no limits.

  • Hot hits today& #33; More hits on the way!

  • Do me a favor, plug me into a Sega (talking TV).

  • All kinds of games, all kinds of fun. (Australia)

  • Let the games begin& #33; (Australia)


  • Mega Drive/Genesis


  • Blast Processing

  • The name " Sega! " being composed by a choir.

  • Welcome To The Next Level. (Also used for the Game Gear. Referenced in Shadow The Hedgehog (video game)|Shadow The Hedgehog )

  • To be this good takes AGES, To be this good takes SEGA. (UK) ("Ages" is "Sega" spelled backwards)

  • Siga Sega& #33; ("Follow Sega!", used in Brazil during the early '90s)

  • Sega, c'est plus fort que toi & #33; ('Sega, it's stronger than you!', cult French TV slogan, early '90s)

  • 16 bit arcade graphics!

  • Cyber Razor Cut

  • La Ley del Más Fuerte (The Law of the Strongest, Spanish slogan from 1993 to 1994)

  • The more you play with it, the harder it gets.

  • Pirate TV (Britain, also featured as a comic series in Sonic the Comic )

  • Canal Pirata Sega (Spain)

  • Sega, é mais forte que tu (Sega, It's stronger than you, Portugal, early '90s)

  • Sega, c'est plus fort que toi& #33; (Sega, It's stronger than you, France, early '90s)

  • Someone yelling " SEGA! " (the "Sega scream").

  • Sega does what Nintendon't!


  • Saturn


  • A little bit too real (early print ad in the US)

  • Welcome to the Real World – Sega Saturn. (Early UK TV slogan)

  • Segata Sanshiro : "Sega Saturn Shiro!" ("Play Sega Saturn!")

  • When you have Sega Saturn, nothing else matters.

  • The Game is Never Over (also used in last European Mega Drive commercials.)

  • Peligrosamente real (Dangerously Real. 1st Spanish slogan)

  • Contraprográmate (De-Program-Yourself, Spain, 1997)

  • The Plaything ad.

  • The Theater of the eye (mid-'90s US ad.)

  • Nous ne sommes pas sur la même planète ("We are not on the same planet", French slogan in the mid-'90s)

  • Perigosamente Real (Dangerously Real, Portugal.)


  • Dreamcast


  • It's Thinking. (tagline used in US launch)

  • Up to 6& nbsp;billion players. (tagline used in Europe launch)

  • You are now entering chapter three (Australian launch)


  • Post-Dreamcast years (2002–2003)


  • The return of the "Sega!" choir.


  • See also


    Portal|Sega|Tokyo|Companies
  • List of Sega video game franchises

  • Lists of Sega games

  • List of Sega video game consoles


  • -

    References


    reflist|colwidth=30em
  • http://www.segasammy.co.jp/english/pdf/release/070207_tanshin_final_e.pdf Sega financial report

  • http://biz.yahoo.com/ic/42/42010.html Yahoo& #33; Finance details for Sega Corporation

  • http://biz.yahoo.com/ic/43/43622.html Yahoo& #33; Finance details for Sega of America

  • Sega's entry into and growth in the American market is documented in Terry Sanders ' film The Japan Project: Made in Japan .


  • External links


  • http://www.sega.com/? t=EnglishUSA Sega of America's official website

  • http://sega.jp/ Sega of Japan's official website ja icon

  • http://www.sega-europe.com/ Sega of Europe's official website

  • http://www.youtube.com/user/SEGA Sega's Official YouTube Channel

  • http://www.segasammy.co.jp/english Sega Sammy Holdings official website

  • http://www.sega-spk.co.kr/ SEGA Publishing Korea's official website ko icon

  • http://sega.wikia.com/wiki/Sega_Wiki Sega Wiki


  • SegaFranchises by SegaJapanese Electronics Industry
    Category:Sega games
    Category:Sega|
    Category:Video game companies of the United States
    Category:Video game companies of Japan
    Category:Video game publishers
    Category:Pinball manufacturers
    Category:Companies based in Tokyo
    Category:Companies established in 1940
    Category:International Game Developers Association members
    Category:Academy of Interactive Arts & Sciences members
    Category:Video game development companies
    Category:Entertainment Software Association
    Category:Orphan initialisms
    Category:Multinational companies
    Category:1940 establishments in Japan

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