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SEGA posts a $56.4 million loss - is it the PS3's fault?

Some interesting news I came across this morning. SEGA has posted a massive loss for this quarter: a whopping $56.4 million. What I found most interesting about this is that the head of SEGA's PR department laid the blame on two things: slow video game sales in Japan, and the company's decision to sell more PS3 games than Wii games.

I should say, I currently don't own a PS3, but I'm planning on getting one soon -- probably when MGS4 comes out. This post also isn't meant as fanboy bait, since bickering over which console is better is fairly stupid, and the industry as a whole is far better off with all three consoles making great games. Hoping that one console fails because you don't like it is retarded.

There are a couple ways to interpret this news. One could say that this is a sign that "casual gaming" (a label I absolutely despise, but that's probably a topic for another blog) is going to reign supreme over this console cycle, and that this is awful news for gamers. The fear would be that SEGA (and other companies) will see that the Wii is where all the money is at, and only make "casual games" for that console and neglect the others. It doesn't matter what SEGA made for the PS3 or how good it was, because they're going to make more money on the Wii peroid.

Another way to look at it is simply that SEGA's entire lineup was pretty pathetic, and the reason the PS3 games didn't sell that well is because they sucked. Virtua Tennis 3, Virtual Snooker Championship 2007, and Full Auto 2: Battlelines aren't really inspiring titles, and I doubt the majority of PS3 owners are really interested in games like that, especially since the 360 and the PS3 are, more and more, being seen as a haven from the sports games and quirky games that seem to have found a home on the Wii. Sure, SEGA had Virtua Fighter 5 and a Sonic game, but VF5 appeals to a pretty niche market, and the Sonic game was supposed to be abysmal.

In my opinion, SEGA doesn't have to give up on the PS3, but they do need to understand the audience they're marketing to on that console. They didn't suffer a huge loss because they developed for the PS3, they suffered a huge loss because they developed crappy games for the PS3 that don't fit its market.

What do you think? Is my analysis correct, or is this happening because casual gaming is destroying the industry?

[Via Spong]
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About Aeroxone of us since 2:41 PM on 12.14.2006

Come join us on IRC!

I'm 23, and have been playing games since I was about 2 or 3 with the super old computer my dad got to bring home from working with the government. I got my NES when I was 5.

I love old school SNES RPGs, and I play pretty much anything now except sports games. I'll play FPSs, but typically not on consoles.

I currently own:
DS Lite

I have previously owned:
A Mac

Xbox LIVE:Aerox47
Mii code:4266-0870-0999-6381


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