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Sammy Finally To Purchase Sega

Posted by simoniker on from the better-late-than-ever dept.

roadies writes "USAToday/Reuters has a story indicating that Japanese videogame/slot machine company Sammy is finally going to acquire Sega, following 'an unsuccessful attempt last year'." Gamesindustry.biz notes regarding the stock deal, worth $1.4 billion: "[Sammy president] Satomi-san, who will be president of the new merged company, has previously expressed his desire to see Sega focusing increasingly on the arcade market, and hopes to use the company's development talent and wealth of intellectual property to build on the success of Sammy's low-cost Atomiswave arcade system", and it's also argued: "The Sega acquisition will also give Sammy a strong base from which to build its overseas operations."

35 comments

  1. "Massive Announcement?" by wheresdrew · · Score: 5, Funny
    I wonder if this might have been the "big news" Sega was supposed to reveal at E3 last week? Maybe the deal wasn't close enough to being done at that point to speak about it.

    It would've been much bigger than their news about The Matrix Online or Phantasy Star Universe.

    1. Re:"Massive Announcement?" by MBCook · · Score: 4, Interesting
      That was the first thing that I thought of when I saw this. Before E3 Sega said something BIG was going to be annouced. Some people thought it was a new console (portable or a new Dreamcast). Others thought it was some big new game that would take the world by storm. The idea of a merger or some such was also tossed around (Nintendo, or maybe MS, or I suppose even Sony).

      Instead, what do we get as a big annoucement? They are publishing "The Matrix Online". Oh yeah, that was worth hype.

      A big part of me didn't buy that and thought that they either overhyped something, or something went wrong and they couldn't annouce it.

      THIS makes perfect sense as a big annoucement. I think you're right. I think this was going to be the big annoucement and they had to hold off or something.

      --
      Comment forecast: Bits of genius surrounded by a sea of mediocrity.
    2. Re:"Massive Announcement?" by Anonymous Coward · · Score: 0, Flamebait

      Sega can't do anything right in the eyes of its disenfranchised hardware fans. All Sega said was "watch for an announcement at E3 - it'll be big." All the nutcase fans immediately thought about hardware, wet dreams about portable Dreamcasts, and other stupid little fanboy garbage that make no economic sense. They built up their hopes all on their own, then caused their own disappointment. IDIOTS.

      After all, what would they expect Sega to say when asked about E3? Maybe something along the lines of, "Oh, please don't pay any attention to us this coming E3." IDIOTS.

      IDIOTS.

    3. Re:"Massive Announcement?" by KDR_11k · · Score: 1

      You don't need to be a fanboy or something to realize that the Matrix online or PSU announcements don't exactly match the description "big". While only said fanboys assumed Sega would announce new hardware, especially since they're currently supporting all the gaming devices available, that does not mean the announcement has to be something insignificant.

      --
      Justice is the sheep getting arrested while an impartial judge declares the vote void.
    4. Re:"Massive Announcement?" by Anonymous Coward · · Score: 0

      Well, I'm not saying that only fanboys could have been, or were, disappointed by the announcements that Sega made at E3. I was more apathetic than disappointed concerning the announcements; but then again, I had no expectations (despite having heard many of the rumors). I'm saying that only fanboys work themselves up in reaction to unsubstantiated hype. Wasn't that the case here? I mean, who else but a fanboy of the idiot type would lead himself to believe in crap such as "Prometheus," without even one consistently reliable source lending credence to the "news?"

      And really, if Sega had kept their mouth shut about E3 beforehand, do you think the fanboys would be crying now? I honestly can't blame Sega for thinking that people might care about Matrix Online. I don't care one bit about it, but American gamers in general tend to like lots of stuff that I don't give a shit about, so it could have gone either way from how I see it.

  2. Well one more out. by tprime · · Score: 3, Interesting

    Well, now we are probably going to be down another game developer. They really are dropping like flies today between acquisitions and bankruptcy. In their attempt to purchase Sega a year ago, didn't Sammy express an interest in getting Sega out of the gaming business and focusing more on their Pachinko gaming machines? The nostalgia behind Sega kind of makes this hurt.

    --
    http://www.tomandemily.com
    1. Re:Well one more out. by Daetrin · · Score: 4, Insightful
      I agree, this is kind of sad. I wasn't happy when Sega was forced out of the console market, and this is just one more step down for them. Especially since as you said, Sammy has expresed interest in them focusing more on the arcade market.

      If Sega had to be bought out, i was hoping that Nintendo would get a clue and make the purchase. Between their rivalry back in the day and their more recent teamwork on some great games (Super Monkey Ball, F-Zero GX, the Sonic GameCube games, the Skies of Arcadia remake, etc) i think they have a lot of common. I would have trusted Nintendo a lot more to deal with Sega the way in which they deserve.

      --
      This Space Intentionally Left Blank
    2. Re:Well one more out. by Anonymous Coward · · Score: 5, Interesting

      Well, there's no sign that Sega's going to be pulling out of console games any time soon, although it would be clear why it would seem appealing to Sammy to do so.

      The Atomiswave (Sega/Sammy), Triforce (Sega/Nintendo/Namco), and Chihiro (Sega/Microsoft) boards are working well in some awesome games. Sega's prize games are also very strong in the Japanese market - they practically own it, in fact. Virtua Fighter is still the current fighting game of choice in Japanese arcades, and Sega's networked arcade games are the main driver of that technology in Japan. It would be foolish for Sammy to scale back or withdraw from all of that.

      As for console game sales, Sega's been kind of hurting. They have had no breakout sales hits on any of the consoles, despite the generally high quality of their games. They certainly don't have the same appeal that they once had, since they no longer have a native platform. And whereas once they were seen as contemporaries of Nintendo, they are now seen in the same light as Namco and Konami - great game houses, but they don't drive console technology, they just go with the flow. And yes, in terms of "who's who" among power players in the industry, that's a step down.

      Anyhow, I'd miss them if they were to step out of console games, but I still expect them to stay in the business. The Sega name has a lot of sway with gamers who were around in Sega's console heydays. And to tprime: Even if they were to pull out of console games, there's just no way they'd stop making arcade games. That would be the stupidest thing that Sega Sammy could do (speaking in terms of their own sanity and economic well-being).

    3. Re:Well one more out. by mrgreen4242 · · Score: 4, Interesting
      I've been hoping for Nintendo/Sega 'merger' since the Dreamcast was discontinued. Had they done it, and done it early, they may have been able to reclaim significant market share after the Sony-PS1 takeover.

      In my opinion, alot of the older Sega games would have been prime, stylistically speaking, GameCube remakes. Ah well. Is it just me, btw, or have arcade games been seriously lagging in development the last 4 or 5 years? Seems like when I was younger, arcades were where you went to see the latest in amazing graphics and games. Now it feels like I am playing a GBA game on a big screen, technology wise.

      Rob

    4. Re:Well one more out. by wal9000 · · Score: 1

      yeah i miss the days when "arcade-quality" games in your home was the holy grail!

      of interest is that the atomiswave system is based on the sega dreamcast...

    5. Re:Well one more out. by LWATCDR · · Score: 1

      Looking at the specs of the Atomiswave I have to say it looks very close to the Dreamcast. It seems to have a little more ram but other than that seems to be a Dreamcast with some added ports.
      Could be a good match

      --
      See my blog http://ilovecookes.blogspot.com/ for light hearted technical information.
  3. zerg by Lord+Omlette · · Score: 4, Funny

    If this fucks w/ Shenmue 3, heads will roll, I'm not kidding.

    --
    [o]_O
    1. Re:zerg by Anonymous Coward · · Score: 0

      Is it even being made? I have been waiting for news of this, but haven't heard anything (aside from some screwed up rumor that some idiot at Microsoft was actually doing the design because the first two "weren't good enough").

      Would be awesome to see that series continue...

  4. Well, this kills another rumor by Anonymous Coward · · Score: 0

    So much for the Sega hardware in 2006 rumor. Unless you count Pachinko machines.

  5. Damn ^3 by XellDx · · Score: 0, Flamebait

    Yay, Sega's doomed.

    --
    X
  6. [snarl] by bersl2 · · Score: 0, Flamebait

    hopes to use the company's development talent and wealth of intellectual property

    If Sammy so much as lays a finger on Yuji Naga, Sonic Team, or anything in the Sonic franchise, then more heads will roll. Hiroshima will look like a firecracker in comparison. I will give them a new definition for "seppuku." And I will beat the ever-loving crap out of every goddamn Sammy executive, then shove flaming piles of their own yen up their asses.

    Between this, and today's announcement on software patents, I'm about ready to unload on someone.

    1. Re:[snarl] by Pluvius · · Score: 1

      If Sammy so much as lays a finger on Yuji Naga, Sonic Team, or anything in the Sonic franchise, then more heads will roll. Hiroshima will look like a firecracker in comparison. I will give them a new definition for "seppuku." And I will beat the ever-loving crap out of every goddamn Sammy executive, then shove flaming piles of their own yen up their asses.

      No you won't.

      But yeah, it looks like this might be the end for Sonic, not to mention many of Sega's other franchises. RIP, Sega. Maybe Sammy will sell franchise rights to Nintendo or something, but I won't be holding my breath.

      Rob

    2. Re:[snarl] by dancingmad · · Score: 4, Insightful

      Did either of you actually think this through before making wild guesses or stupid, racist comments? Why would Sammy buy SEGA to gut it of its key franchises? That's ridiculous. I imagine SEGA will continue to have a lot of freedom to do as it pleases, including making Sonic games, will get some much needed cash from pachinko king Sammy, and Sammy will slowly use SEGA to enter the game market. If I'm not mistaken Sammy develops Guilty Gear X; Sammy probably wants to consolidate pachinko style gaming and video games into one business both conceptually and on site (makes sense, especially in a Japanese context) and SEGA is a well known, quality developer who needs some cash.

      Again, I ask you, how would it make sense, considering those facts, that Sammy would gut SEGA?

      --
      "There is no time, sir, at which ties do not matter," Jeeves, (Jeeves and the Impending Doom)
    3. Re:[snarl] by Nakamiya · · Score: 2, Informative

      Well, Sonic Team and Sega's other 6 subsidiaries will "begin integrating back into Sega"

      http://www.gamespot.com/news/2004/05/18/news_60986 77.html

    4. Re:[snarl] by Pluvius · · Score: 1

      "[Sammy president] Satomi-san, who will be president of the new merged company, has previously expressed his desire to see Sega focusing increasingly on the arcade market"

      Tell me, how well do you think Sonic would translate to the arcade? Keep in mind that now-a-days the arcade scene is dominated by rhythm and fighting games. Or how about a game that would never possibly work in an arcade, like Phantasy Star or Shenmue?

      I agree that there would normally be no reason for Sammy to gut Sega, but when the president of the company says that he wants to turn Sega into primarily an arcade developer, things don't look good on that front.

      Rob

    5. Re:[snarl] by Anonymous Coward · · Score: 0

      Sega has already released Sonic arcade games in the past, and yes, one of the games was a fighting game. This isn't uncommon knowledge, and thanks to advanced Google technology, factual verification is now easier than ever.

      Regarding some genres like RPGs and lengthy adventures not being suited for arcades, you might be surprised to see what concepts can "work" in Japanese arcades. I have examples, but I'll leave the research to you. More fun that way. :)

    6. Re:[snarl] by Pluvius · · Score: 1

      Sega has already released Sonic arcade games in the past, and yes, one of the games was a fighting game.

      See, my point was that if Sammy keeps Sonic, any Sonic game that comes out from now on will likely be very different from the Sonic games that we're used to. It won't be the same franchise that people have grown attached to anymore.

      Regarding some genres like RPGs and lengthy adventures not being suited for arcades, you might be surprised to see what concepts can "work" in Japanese arcades.

      I already know that the Japanese have some weird concepts when it comes to gaming, but how likely do you think it is that they'll be translated to English-speaking audiences?

      Rob

  7. Sega Sports Series / Virtual Concepts by MBraynard · · Score: 4, Interesting
    One very bright part of the Sega was their sports series that was developed by VC. In the last couple of years, they have been rated on par or better than the EA series. Sales don't reflect that just yet, although it does take some time to build a franchise.

    I'm not really sure how this arcade thing will come into play in the US. I don't think there are very many arcades left here, although that DDR thing seems to be popular and I look forward to dropping $20 on a machine one day to try and get the hang of it.

    1. Re:Sega Sports Series / Virtual Concepts by superpulpsicle · · Score: 1

      OMG I am so worried on this. I buy all my sports games from Sega. They are just superior in comparison to EA sports games... who are extremely well marketed but seriously lack substance.

      No joke, I have rented about 10 sports games in the past year combined to deserve the right to say this.

    2. Re:Sega Sports Series / Virtual Concepts by MBraynard · · Score: 1

      Yep. And when I had an Xbox I would play the Segasports games on Live.

  8. I cant wait for Sonic themed Pachinko machines! by Tezkah · · Score: 1

    I've waited so long :(

  9. I know... by WTFmonkey · · Score: 1

    So many possible flames, so little time. I had a hard time picking, too.

  10. How is this a problem? by SuperMo0 · · Score: 1

    I don't see how this is much of a problem. Granted, Sammy will probably send Sega farther into the arcade market, but if you look at it, would you rather send a flailing brand into a sector that they were forced to pull out of years ago, or one that they're still dominating in in the country that you so happen to be based in? Sega has a much more stable arcade department, and it would probably be smarter financially for Sammy to go ahead and send them into the sector that Sega seems to know best. At least we aren't losing the brand entirely.

  11. Re:I cant wait for Sonic themed Pachinko machines! by SuperMo0 · · Score: 1

    Or perhaps because the Sega brand has some leverage in the US, still, while Sammy really doesn't, Sammy could bring pachinko parlors over to the US? If they did it under the Sega label, it might deface the brand a bit, but Sega's already taken a beating.

  12. Re: Sammy and Guilty Gear by Morrisguy · · Score: 1

    If I'm not mistaken Sammy develops Guilty Gear X

    I'm afraid you are mistaken. Sammy is only the publisher of the Guilty Gear series. The actual developer is ARC System Works of Japan, which according to their english company profile also lists SEGA as a customer of their products.

  13. Suggested named for new company by SuperMo0 · · Score: 1

    Following the precedent of SNK Playmore... Segammy Sammyga Semmy Samga

    1. Re:Suggested named for new company by SuperMo0 · · Score: 1

      Hooray for absolutely forgetting to format my comment!

      Segammy
      Sammyga
      Semmy
      Samga
      Anyone have any more suggestions?

  14. Two concerns by Anonymous Coward · · Score: 0

    1. "We will reshuffle development organizations to be more efficient and to make only games that will sell well," Sega President Hisao Oguchi said.

    This quote from news.com makes me worried about exactly what kind of games they're really talking about. I do hope we don't see Sammy churn out video games that are as generic as pachinko machines. Same thing over and over with a different graphical template. I shudder to imagine.

    2. Part of Sega's allure for Satomi--who owns 27.6 percent of Sammy's shares outstanding--is using Sega's titles in Sammy's "Atomiswave" game machines for arcade use. Sega's arcades will also likely use the Atomiswave machines.

    What does THIS mean for Sega's plans for a new arcade based off PowerVR's brand new Series 5 hardware? While probably similar to Atomiswave it's certainly not the same thing.

    Whether Sega produces more games for the console or not really doesn't concern me as much as whether I'd ever want any of these generic quarter munchers to begin with.