Sega captures dollar share of videogame market -- again; diverse product strategy yields market growth; Sega charts path for 1996.REDWOOD CITY Redwood City, city (1990 pop. 66,072), seat of San Mateo co., W Calif., on San Francisco Bay; inc. 1868. Manufactures include commmunications, electrical, electronic, and medical equipment. , Calif.--(BUSINESS WIRE)--Jan. 10, 1996--Sega(TM) of America Wednesday announced that it led the North American North American
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see boophilusannulatus. videogame market in overall dollar share for the third consecutive year in 1995.
Estimated dollar share for Sega-branded interactive entertainment hardware and software in 1995 was 43 percent, compared with Nintendo at 42 percent, Sony at 13 percent and The 3DO Co. at 2 percent. Sega estimates the North American videogame market will total more than $3.9 billion for 1995.
Holiday sell-outs of videogame hardware including 16-bit Sega Genesis(TM), 32-bit Sega Saturn The Sega Saturn (セガサターン Sega Sataan (TM) and Sega's portable game systems, Game Gear(TM) and Genesis Nomad(TM), combined with high software sales, put Sega ahead of the competition in overall videogame sales.
"Having products in all of the videogame categories was clearly a winning strategy for Sega this year," Tom Kalinske Thomas "Tom" Kalinske is an American businessman, best known as the president and CEO of Sega of America from 1990 to 1996. His aggressive marketing decisions, such as price drops and the famous "Sega Scream" TV campaign, are frequently regarded as key elements in the success of , president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Sega of America, said.
"The holiday selling season was a reasonably good one for Sega -- we basically sold all the hardware we were able to bring into the market, and our key software sold extremely well; keeping retailers in stock was our biggest challenge."
Genesis Sold Out Nationwide
Notably, while analysts and retailers had predicted a large decline in the U.S. 16-bit market, Sega did not have enough Genesis systems to meet holiday demand. Sega sold more than 2 million Genesis systems in 1995.
"Clearly, everyone underestimated the 16-bit market, which totaled more than 70 percent of videogame unit sales unit sales
Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. this year," Kalinske stated. "Given retailer and consumer feedback we could have sold another 300,000 Genesis systems in the November/December timeframe."
Sega attributes the strong demand to a combination of the attractive price point -- below $100 for the 16-bit system with a game included and the strongest first- and third-party software lineup ever developed for the system. In particular, Sega's "VectorMan" and "Primetime Football," Disney's "Toy Story" and Electronic Arts' "Madden '96" were exceptionally strong during the holiday season.
Sega Saturn Climbed Above 3 Million Worldwide, Tripled in U.S. Sales
Worldwide, the Sega Saturn installed base reached more than three million by the end of 1995. In Japan, Sega Saturn experienced tremendous sales and reached an installed customer base of more than 2.2 million. During November and December, Sega outsold out·sold
Past tense and past participle of outsell. Sony, its closest competitor, by a margin exceeding 3-to-1.
In addition, Sega's exclusive software "Virtua Fighter
Virtua Fighter is a 1993 fighting game developed for the Sega Model 1 arcade platform by AM2, a development group within Sega, headed by Yu Suzuki. 2(TM)" sold more than 1.5 million units, bringing to 3 million the total number sold in Japan of the "Virtua Fighter" series (including: "Virtua Fighter," "Virtua Fighter Remix," and "Virtua Fighter 2").
North American sales of Sega Saturn in November and December increased over prior months by up to three times in many retailers across the country; the total number of systems sold in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. was 400,000 since the product was introduced in May 1995.
According to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. Kalinske, North American Sega Saturn performance was limited by a short supply of the integrated circuits Integrated circuits
Miniature electronic circuits produced within and upon a single semiconductor crystal, usually silicon. Integrated circuits range in complexity from simple logic circuits and amplifiers, about 1/20 in. (1. used in the system; given the shortage and worldwide market conditions, Sega emphasized the Japanese market. Sega has put in place a strong worldwide procurement and production plan to meet the demand for Sega Saturn in the North American market.
"While we fell short of our North American goal for Sega Saturn, in December we significantly closed the gap with our competition," Kalinske stated. "History repeats itself; we were the underdog once before -- the `next-generation' war is far from over."
More than two million software units for Sega Saturn were sold in North America in 1995. Third party titles from companies such as Electronic Arts, Acclaim, Crystal Dynamics Crystal Dynamics is an American video game developer based in the San Francisco Bay Area. It was acquired by Eidos Interactive, a British video game publisher, in 1998, and is still part of the Eidos group. and Time Warner Time Warner Inc. (NYSE: TWX), formerly known as AOL Time Warner, is the world's largest media and entertainment conglomerate headquartered in New York City, with major operations in film, television, publishing, Internet service and telecommunications. Interactive accounted for a significant percentage of the software units sold.
Most retailers experienced sell-outs of the Sega Saturn $299 core pack and many had shortages of the $349 Sega Saturn with "Virtua Fighter Remix" packed-in. In addition, Sega's key exclusive software "Virtua Fighter 2," "Virtua Cop Virtua Cop (known as Virtua Squad for the North American PC version) is a shooter arcade game created by Sega-AM2, and headed by Yu Suzuki. Its original incarnation was an arcade game in 1994 and it was later ported to the Sega Saturn in 1995, and the PC in ," and "Sega Rally Championship “Sega Rally” redirects here. For the most recent installment of the game, see Sega Rally Revo.
Sega Rally Championship is a 1995 arcade racing game developed by AM5 on the Sega Model 2 board. " -- all of which have been awarded accolades from industry magazines -- sold extremely well. In fact, Sega sold more than 200,000 copies of "Virtua Fighter 2" in December, even though the title didn't reach retail until mid-December and was in limited distribution.
"We've now got the elements -- a $299 price point for the system, stellar software at retail, and a software lineup for 1996 that no other company can match -- to regain the next-generation lead in North America in 1996," Kalinske added.
Strong Market for Sega Portables
With approximately 900,000 units of Game Gear sold, more than 600,000 of those in the fourth quarter of the year, Game Gear was in short supply at retailers around the country. Nomad, Sega's 16-bit color portable unit which was introduced in limited distribution in November 1995, also sold very well.
PICO Pico (pē`kō) [Port.,=peak], island (1991 pop. 15,129), 167 sq mi (433 sq km), Horta dist., in the N Atlantic, one of the central Azores. It takes its name from the volcanic mountain, Pico Alto [high peak], which rises to 7,711 ft (2,350 m). Grows 138 Percent in 1995
PICO(TM), Sega's edutainment system for children ages three to seven, increased in sales 138 percent in 1995 over 1994, making it the hottest product in the electronic learning aid category for the year. Sega sold more than 225,000 PICOs in 1995, bringing the installed base for this 14-month-old product to more than 400,000 units.
SegaPC: Solid Foundation for Future Growth
Sega brought its properties to the multimedia PC for the first time in 1995 in a limited test that began to leverage the Sega brand within the growing market of home PC users. Sega games for the PC include "Sonic the Hedgehog Sonic the Hedgehog is a fictional hedgehog character that serves as the mascot of the Japanese video game company Sega. The name is also the title of several entries in the Sonic the Hedgehog series. (TM)," "Virtua Fighter Remix," "Tomcat Alley," "Comix Zone," and "Ecco the Dolphin This article is about the video game. For the game series, see Ecco the Dolphin (series).
Ecco the Dolphin is a video game released in 1992 for the Sega Mega Drive/Genesis. ."
"We wanted to test the PC market with some of our stronger properties, and the results demonstrate that there is a definite market for our arcade style of fast-action videogames on the PC," Kalinske stated. "We now have a strong understanding of the PC marketplace and have plans for rapid expansion of the Sega PC line, with nearly 30 titles due out in 1996."
Sega Charts Strong Course For 1996
In 1996, Sega's primary hardware focus will be on driving sales of Sega Saturn, Genesis and PICO. The company has established a strong lineup of software that will include the extension of current strong properties, as well as 20 original developments and more than 10 translations from Sega's arcade machines for Sega Saturn. For Sega Saturn the company has established worldwide procurement plans that will ensure ample supply of hardware product throughout the year.
In addition, Sega will leverage its 1996 console properties on PCs to continue gaining ground in that growing market.
"We see the market segmented by technology, age and price, and we're the only company than can respond with the right product mix of leading interactive entertainment," Kalinske noted. "We've been in this position before, know what it takes in terms of marketing and product to capture the market segment, and are fully prepared for 1996."
Sega of America is the arm of Tokyo-based Sega Enterprises Ltd. responsible for the development, marketing and distribution of Sega videogame systems and video games in the Americas. Sega Enterprises Ltd. is a nearly $4 billion company recognized as the industry leader in interactive digital entertainment media, and is the only company that offers interactive entertainment experiences both inside and outside the home.
Sega of America's World Wide Web site is located at: http://www.segaoa.com.
CONTACT: Sega of America
Lee McEnany, 415/802-3943
Manning, Selvage & Lee
Kelly Fitzsimmons, 213/782-6600, Ext. 235