Sega Sammy Holdings

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This article is about the holding company. For separate articles on the two flagship brands, see Sega and Sammy.
Sega Sammy Holdings Inc.
Native name
株式会社セガサミーホールディングス
Kabushikigaisha Sega Samī Hōrudingusu
Kabushiki gaisha
Traded as TYO: 6460
Industry Mass media
Founded October 1, 2004; 12 years ago (2004-10-01)
Headquarters Tokyo, Japan
Key people
Products
Revenue Decrease ¥347.981 billion (2016)[1]
Increase ¥17.617 billion (2016)
Decrease ¥5.369 billion (2016)
Number of employees
7,149 (FY 2013)
Divisions
Website www.segasammy.co.jp/english/

Sega Sammy Holdings Inc. (株式会社セガサミーホールディングス Kabushiki Gaisha Sega Samī Hōrudingusu?, TYO: 6460) is a Japanese consolidated holding company formed from the merger of Sega and Sammy in 2004. Both companies are involved in the amusement business (Sega with arcade games, Sammy with pachinko machines), and Sega's fame also comes from their video game franchises and home consoles.[2]

The Sega Sammy logo is a design based on the letter “S,” the initial letter of both companies’ names. The synergy generated by the integration of the two companies are represented by a combination of blue and green, which are the companies’ corporate colors. Furthermore, In the logo, a curved line that suggests the horizon linking the words Sega and Sammy symbolizes the companies’ collaboration, and the Sega Sammy Group’s determination to develop globally.[3]

Corporate history

Sega

Main article: Sega § History

Sega was established in Japan in 1951 under the name Service Games when Richard Stewart and Ray LeMaire went to Tokyo under Martin Bromley’s request to gain a new distributor for the company. The company started to distribute provided coin-operated slot machines to U.S. bases in Japan. During the 1960s, Service Games was renamed to Sega Enterprises Ltd. Sega Enterprises sold their first product, the electro-mechanical game called Periscope which became a worldwide hit. In 1969, Sega Enterprises was acquired by U.S. conglomerate Gulf & Western Industries Inc. In 1983, Sega launched the Sega Computer Videogame SG-1000, the first 8-bit video game platform. In 1986, the CSK Group acquired Sega Enterprises through capital participation. Sega Europe Ltd. was established in Europe, and in 1985, Sega Enterprises Inc. was established in the United States. These regional subsidiaries served as a marketing base for amusement arcade machines.[4]

During 1985, Sega released Hang-On, the world's first force feedback game. Sega Enterprises was registered stock on over-the-counter (OTC) market. In 1988, Sega Listed stock on the second section of Tokyo Stock Exchange. Within this year, Sega released the Sega Mega Drive/Genesis, a 16-bit home video game platform that solidified Sega’s presence in the console market. During this year, Sega also launched the R-360, the world's first amusement arcade cabinet could rotate 360 degrees in all directions. In 1991, Sega released Sonic the Hedgehog as a competitor mascot to represent Sega against Nintendo’s Mario, and with 15 million copies sold, Sonic the Hedgehog spawned multiple sequels over the years and became Sega’s flagship franchise.[4]

In 1992, Sega released Virtua Racing in order to utilise polygonal 3D-graphics engines, and in 1993, Sega released Virtua Fighter, the world's first polygonal 3D fighting game. The Virtua Fighter series resulted in various world records including "First Polygon Based Fighting Game", "First 3D Fighting Game", and "First Fighting Game for a 32-bit Console". In 1994, Sega launched the Sega Saturn, a 32-bit home video game platform. In 1995, Sega launched Print Club Arcades in partnership with Atlus. In 1996, Sega released Sakura Wars, a Japan exclusive sim-based Strategy RPG that became a cultural phenomenon within Japan spawning a multi-media franchise. In 1998, Sega launched the Sega Dreamcast. In 2000, Sega Enterprises changed their name to Sega Corporation. During this year, Sega released Phantasy Star Online, the first networked role-playing game (RPG) for home video game platforms. In 2001, Sega discontinued the Dreamcast and withdrew from the console hardware industry to become a third-party video game developer and publisher.[4]

Sammy Corporation

Sammy Corporation was founded on 1975 as Sammy Industry Co., Ltd. by Japanese Business magnate, Hajime Satomi. It was formed from Satomi Corporation's manufacturing and marketing divisions for amusement arcade machines. In the 1980s, Sammy marketed and sold Pachislot machines, and in the 1990s, Sammy expanded their portfolio by marketing and selling Pachinko machines. These two business ventures have been the primary pillar of Sammy Corporations revenue. During 1997, Sammy Industry Co., Ltd. changed its name to Sammy Corporation. By 2000, Sammy Corporation was listed in the Tokyo Stock Exchange's 1st section, indicating it as a "large company".[5] Outside of Pachinko and Pachislot industry, Sammy Corporation was also involved in the video game industry as a publisher for fighting games such as the Guilty Gear series (developed by Arc System Works), The Rumble Fish series (developed by Dimps) and Survival Arts.

Merger

According to the first Sega Sammy Annual Report, the merger of the two companies happened due to the companies facing difficulties. According to chairman Hajime Satomi, Sega had been in the red for nearly 10 years[6] and lacked a clear financial base. Sammy, on the other hand, feared stagnation and overreliance of its highly profitable pachislot and pachinko machine business, and wanted to divesify its business in new fields, using Sega's broader range of involvement in different entertainment fields.[7]

Together, as the Sega Sammy group, the company has grown and acquired and founded multiple companies.[8]

Until 2015, the group was structured in four areas.[9]

  • The "Consumer Business", which contained video games, toys and animation.
  • The "Amusement Machine Business" which contained Sega's arcade business.
  • The "Amusement Center Business" which contained Sega's amusement centers and theme parks.
  • The "Pachislot and Pachinko Business" is the Sammy Corporation and is the main pillar the groups revenue.

For the better half of the first decade of the holding's existence it has sought the arcade machine sales of Sega and the pachinko sales of Sammy, as its biggest financial incentive. A shift happened in the 2010s, leading to the "Group Structure Reform" in 2015. Casinos, resorts and digital games are now the biggest financial incentives. Arcade sales and packaged games from Sega has softened, while growth in pachinko sales is not anticipated.[10]

Today the group is structured around the entertainment, resort and pachinko/pachislot industries. With the exception of Sega's theme park business (Sega Live Creation), the consumer, amusement machine and amusement center businesses are in the entertainment sector of the group, led by Sega.[11]

Performance

Sales[12]

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pachislot and Pachinko Machines

millions of yen

280,109 265,631 211,539 145,582 161,691 160,376 212,060 212,189 142,281 181,834 149,122
Amusement Machine Sales

millions of yen

72,416 71,512 75,454 71,061 61,926 45,117 47,237 49,929 39,134 38,604 45,480
Amusement Center Operations

millions of yen

77,847 106,245 103,850 91,226 71,310 54,788 45,695 44,608 42,707 43,216 41,432
Consumer Business

millions of yen

74,266 106,245 119,593 141,790 131,361 121,575 88,896 85,688 83,874 99,841 111,757
Others

millions of yen

25,007 19,497 17,800 9,315 2,904 2,821 2,843 3,087 13,409 14,513 13,677

Operation income[12]

2005 2006

2007

2008

2009

2010

2011

2012

2013

2014

2015
Pachislot and Pachinko Machines

millions of yen

103,930 99,847 71,102 8,443 14,528 29,502 64,284 71,040 23,534 45,292 25,796
Amusement Machine Sales

millions of yen

7,423 12,176 11,682 7,152 6,890 7,094 7,317 7,415 1,902 -1,264 -2,356
Amusement Center Operations

millions of yen

5,472 9,244 132 -9,807 -7,520 -1,338 342 355 1,194 60 -946
Consumer Business

millions of yen

-8,809 9,244 1,748 -5,989 -941 6,332 1,969 -15,182 -732 2,089 4033
Others

millions of yen

-541 -1,712 -1,345 -74 353 336 -10 234 -484 -1,200 -2908

Structure

Pachislot and Pachinko machine business

These are the companies and subsidiaries affiliated with Sega Sammy Group's pachislot and pachinko machine business.[13]

Entertainment contents business

The entertainment contents business provides a diverse range of entertainment from digital content to toys. These are the companies and subsidiaries affiliated with Sega Sammy Group's entertainment contents business.[14]

Resort business

  • Holding companies
  • Resorts
    • PHOENIX RESORT CO.,LTD.
    • PARADISE SEGASAMMY Co.,Ltd.
    • Sega Sammy BUSAN INC.
    • Sega Sammy Golf Entertainment Inc.

Others

  • Call Center Outsourcing, Human Resources, Temporary Staffing, and other Business holdings
    • Japan Multimedia Services Corporation
    • HONEST Co.,LTD.
    • InfiniTalk Co.,Ltd.
    • patina Co., Ltd.
  • Development of Stage and Performance programs
    • D×L CREATION Co., Ltd.

Related companies

Current affiliates

Former affiliates

See also

References

  1. ^ "Consolidated Financial Statements" (PDF). Retrieved May 16, 2016. 
  2. ^ "Sega Sammy Holdings Background - After Integration". Sega Sammy Holdings. Retrieved 2014-02-09. 
  3. ^ "Sega Corporation Annual Report 2004". Sega Sammy Holdings. 31 March 2004. Retrieved 10 January 2017. 
  4. ^ a b c "History of SEGA SAMMY Group/SEGA before Business Integration|SEGA SAMMY Group|SEGA SAMMY HOLDINGS". Segasammy.co.jp. Retrieved 2016-12-11. 
  5. ^ "History of SEGA SAMMY Group/Sammy before Business Integration|SEGA SAMMY Group|SEGA SAMMY HOLDINGS". Segasammy.co.jp. Retrieved 2016-12-11. 
  6. ^ Hirohiko Niizumi (2004-06-01). "Sammy reveals new logo, changes at Sega". GameSpot. Retrieved 2016-11-16. 
  7. ^ "Annual Report 2005" (PDF). Sega Sammy Holdings Inc. 2005-09-05. Retrieved 2016-11-16. 
  8. ^ "Sega Sammy Group - the FACTS" (PDF). www.segasammy.co.jp. Sega Sammy Co., Ltd. 2014. 
  9. ^ "Earnings information". Sega Sammy Holdings. Retrieved 2016-11-16. 
  10. ^ "2014 Winter Sega Sammy Report" (PDF). Sega Sammy Holdings Inc. 2004-11-27. Retrieved 2016-11-16. 
  11. ^ "FY Ended March 2015 Full Year Results Presentation" (PDF). Sega Sammy Holdings Inc. 2015-05-12. Retrieved 2016-11-16. 
  12. ^ a b "Balance sheets information|Financial Information|Investor Relations|SEGA SAMMY HOLDINGS". Segasammy.co.jp. Retrieved 2015-02-04. 
  13. ^ "Pachislot and Pachinko Machines|Business Summary|SEGA SAMMY HOLDINGS". Segasammy.co.jp. 1994-12-01. Retrieved 2016-12-11. 
  14. ^ "Entertainment Contents Business|Business Summary|SEGA SAMMY HOLDINGS". Segasammy.co.jp. 1994-12-01. Retrieved 2016-12-11. 
  15. ^ 4-traders (1960-08-10). "Sanrio Company, Ltd. company : Shareholders, managers and business summary | Tokyo: 8136". 4-Traders. Retrieved 2015-08-13. 

External links