Industry watch Toolkit

Sega to go beyond gaming for business opportunities

Gamespot UK GameSpot UK

Published: 20 Jun 2001 15:17 BST

In order to supplement its revenue stream Sega is looking into business ventures outside the gaming industry.

At a press conference held in Japan on Tuesday, Sega announced that in order to recuperate from four years of operating losses, the company is actively pursuing business opportunities outside the gaming industry.

Tetsu Kayama, co-chief executive of Sega, said that peripheral business ventures such as the development of educational software and 3D software for training and analysis could provide a relatively significant revenue stream for the company in the foreseeable future. Sega expects its new business ventures to contribute approximately 10 percent to the company's overall revenue over the next five years.

Sega's efforts to restructure itself into a solely third-party software development company have been progressing smoothly, and the company's financial situation is also improving, according to company officials.

Sega posted a net loss of 51.7bn yen for the fiscal year ended 31 March. The company expects to increase its revenue to 128 billion yen by the 2003-2004 fiscal year. The company is developing games for all platforms, including the Nintendo GameCube and Game Boy Advance, the Microsoft Xbox, the Sony PlayStation2, and the Dreamcast.

See techTrader for the latest technology business news.

Have your say instantly, and see what others have said. Click on the TalkBack button and go to the techTrader forum

Let the editors know what you think in the Mailroom. And read other letters.