Japanese videogame publisher Sega Corp on Wednesday unveiled a new business plan with the aim of doubling its sales of videogame software in five years and broadening the customer base of its arcade game operations.
"Given our development resources and the expected launch of next-generation game consoles, I believe we can double our sales of packaged software from the current level of around 10 million units in about five years," Sega President Hisao Oguchi told a news conference.
The struggling game maker, known for its "Sonic the Hedgehog" hit character, sold 10.7 million units of videogames globally in 2002/03 and forecast sales of 9.25 million units for 2003/04.
Oguchi, 43, who took the helm last month with a remit to rebuild the firm's credibility, which was battered earlier this year when it scrapped a planned merger with "pachinko" pinball-style game machine maker Sammy Corp and lost a second potential partner, Namco Ltd.
"I will establish strong leadership and reinforce our merchandising to bring new excitement to our customers," Oguchi said, pointing to an initiative which he has already taken in restructuring costly development units.
Sega, Japan's biggest arcade game centre operator, aims to lure a wide range of customers by creating new type of entertainment facility targeting adults and introducing unique arcade game machines including network games, Oguchi said.
Analysts welcomed Oguchi's upbeat outlook and ideas, but some voiced concerns about the challenge he faces in terms of leadership and cost management.
"Oguchi's plan is clearer than expected, but it's still unclear how Sega will cut development costs and how it will turn around its key U.S. videogame operations," said Kota Nakako, a senior analyst at JP Morgan.
Highlighting Sega's problems, sales of its American football simulation game missed its target last year, hurt by "Madden NFL 2003" made by U.S. rival Electronic Arts Inc.
Oguchi said Sega plans to promote its sports games in the U.S. market by focusing on its alliance with ESPN sports channel, but he declined to provide further details.
SOURCE:
Reuters.
