Sega Finally Turning It Around Financially?

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gamasutra.com

Sega Raises Forecasts
Representatives from Sega have indicated that the company is raising its earnings and sales forecasts for the first half of the fiscal year. For the first half ended September 30 the company is predicting a group net profit of 5.7 billion yen ($52.0m), up from an initial forecast of just 200 million yen ($1.8m). In the same period in 2002 the company earned 1.01 billion yen ($9.2m).

Sales forecasts for the first half have also been raised from 88 billion yen ($802.5m) to 94.2 billion yen ($856.4m). The actual figures will be reported next month.

In the fiscal year through March 2004, the company predicts its net profit will climb to 8 billion yen ($72.9m) from an initial forecast of 7.5 billion yen ($68.4m).
-David Jenkins

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A forecast of $1.8 million bumped up to $52 million?! It's good to see things working out for them as a third party. Things should improve still with them spreading out their developing for all consoles more (read: more ps2 games). What boosted them so much? The first half of their fiscal year ended at the end of September so it started at the beginning of April. There was Virtua Fighter 4 Evo, and ummmm... Billy Hatcher? Sonic Advance 2? ... Dunno what else. Good news for them tho.

nice to see theyre finally making some money :)

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Originally Posted by Scourge

What boosted them so much? The first half of their fiscal year ended at the end of September so it started at the beginning of April. There was Virtua Fighter 4 Evo, and ummmm... Billy Hatcher? Sonic Advance 2? ... Dunno what else.

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They probably just sold off Visual Concepts to Sony.

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Originally Posted by sphere79

They probably just sold off Visual Concepts to Sony.

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Probably something drastic like that, they haven't really had a million seller lately.

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Originally Posted by sphere79

They probably just sold off Visual Concepts to Sony.

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Yowch! After a quick check-up on your rumor mongering, I've decided you may be right.

Didn't they lower their expecations by exactly the same numbers earlier in the year? I don't think things are changing for them at all.

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Originally Posted by Ammadeau

Didn't they lower their expecations by exactly the same numbers earlier in the year? I don't think things are changing for them at all.

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If you look at the year to year comparison, for the same period in 2002, they earned $9.2 million and that period in 2003 is $52 million, a difference of around $43 million, so whether they lowered their expectation earlier in the year or not, things have certainly changed for some reason.

Now all they need to do is turn things around mentally. :p

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Originally Posted by Melf

Now all they need to do is turn things around mentally. :p

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Well, considering they conglomerated their development houses and made some serious strategic decisions about what games and game types will be put onto what consoles, like discontinuing sports support for GC and deciding to put Sonic on all platforms, I'd say they they're turning the corner there too. As long as they don't jizz all over the place and announce a new console for 2004 on the heels of their recent positive financial statement, I think they'll be alright. Of course, I'd buy that console, so...

Did they sell VC to Sony? Hmmm. I was doubtful that their move to 3rd party would work for them, but looks like they proved me wrong. Now if only they'll release Shenmue II on PS2, I'll be happy with them once again.

SC