Post by Jacob Marley on Oct 22, 2003 21:34:18 GMT
5.6 billion yen (about $50+ million US dollars) was the latest quarterly profit announced by Sega. Many have rejoiced in the fact that Sega's fortunes appear to be turning around, but just what does this seemingly large profit mean?
Research the subject further and you'll realize that this is good news, but Sega has a LONG way to go before it sees itself becoming a solvent company. Many forget that Sega has been wallowing in the red ink for the past decade...debts that were made even worse by bank draining failed hardware rollouts like the Saturn and Dreamcast. In fact, just last year (March 2002 to be exact), Sega posted a LOSS upwards of 200 million yen! That's not including the losses that were posted in 1994 thru early 2000! As you can see, despite the small profit, Sega has a tough road ahead and an impatient board of directors which will complicate matters.
This 5.6 billion yen quarterly profit is good news, but will do very little in terms of offsetting the massive debts incurred thus far. What will happen to Sega is anyone's guess, but perhaps this is the start of the changes that were needed years ago.
Research the subject further and you'll realize that this is good news, but Sega has a LONG way to go before it sees itself becoming a solvent company. Many forget that Sega has been wallowing in the red ink for the past decade...debts that were made even worse by bank draining failed hardware rollouts like the Saturn and Dreamcast. In fact, just last year (March 2002 to be exact), Sega posted a LOSS upwards of 200 million yen! That's not including the losses that were posted in 1994 thru early 2000! As you can see, despite the small profit, Sega has a tough road ahead and an impatient board of directors which will complicate matters.
This 5.6 billion yen quarterly profit is good news, but will do very little in terms of offsetting the massive debts incurred thus far. What will happen to Sega is anyone's guess, but perhaps this is the start of the changes that were needed years ago.
