Featured Articles

Broadwell to be faster than Skylake-S in desktop

Broadwell to be faster than Skylake-S in desktop

Intel will do something that it never did before. It will release two processor generations at once in the desktop space.…

More...
ARM’s signs off on 64 bit ARMv8-A

ARM’s signs off on 64 bit ARMv8-A

British chip designer ARM has just signed off its 50th licensing agreement for its ARMv8-A technology, which includes support for 64-bit…

More...
Intel Business vPro market divided into 7 categories

Intel Business vPro market divided into 7 categories

Just a few years ago we had two market segments for business users. We had desktops and notebooks and now Intel…

More...
GTA 5 will make November release

GTA 5 will make November release

While we have continued to hear that Grand Theft Auto V for the Xbox One, PlayStation 4, and PC will not…

More...
Aerocool Dead Silence reviewed

Aerocool Dead Silence reviewed

Aerocool is well known for its gamer cases with aggressive styling. However, the Dead Silence chassis offers consumers a new choice,…

More...
Frontpage Slideshow | Copyright © 2006-2010 orks, a business unit of Nuevvo Webware Ltd.
Wednesday, 11 February 2009 03:56

Sega Sammy seeks to cut costs by 20%

Written by David Stellmack

Image

Soliciting voluntary redundancies

As losses are mounting for Sega Sammy, the company is looking to slash research and development costs by at least 20 percent. As part of this process, the company is soliciting voluntary redundancies from around 560 employees to help with the process.

In addition, Sega Sammy will be closing 110 amusement facilities, which will put approximately another 3,200 employees out of work. Sega Sammy has experienced losses for the last nine-month period that total more than $118 million. Actually, this is an improvement over the same period last year, but hard to believe when the company says that net sales have decreased by 15.4 percent over the same period from last year.

With the weakened economy Sega Sammy is like many other publishers that are struggling to survive. The Sammy division responsible for the company pachinko and pachislot coin-op business has been hardest hit, with net sales of only $58 million.

The video game side of the business, which is operated under the Sega arm of the company, has seen a decrease in demand for its titles in the Japanese market space, but sales were holding their own in North American market space. Leading the charge for Sega were Sonic Unleashed, Football Manager 2009, and Mario & Sonic at the Olympic Games, which led the video game division on copies sold.

According to analysts, Sega Sammy might have to deal with more severe belt tightening to weather the current economic climate, and many expect more layoffs before it is all said and done.
Last modified on Wednesday, 11 February 2009 05:45
blog comments powered by Disqus

 

Facebook activity

Latest Commented Articles

Recent Comments