Sega Sammy Holdings

This article is about the holding company. For separate articles on the two brands, see Sega and Sammy.
Sega Sammy Holdings Inc.
Native name
セガサミーホールディングス株式会社
Kabushiki gaisha
Traded as TYO: 6460
Industry Video games
Pachinko
Entertainment
Founded October 1, 2004
Headquarters Tokyo, Japan
Key people
Hajime Satomi
(Chairman and CEO)
Naoya Tsurumi
(COO)
Hisao Oguchi
(CCO)
Revenue Increase US$ 3.711 billion (2013)
Increase ¥30.7 billion (2013) US$301 million
Number of employees
7,149 (FY 2013)
Subsidiaries Sega
Sammy Corporation
TMS Entertainment
Website Sega Sammy Holdings Inc.

Sega Sammy Holdings Inc. (セガサミーホールディングス株式会社 Sega Samī Hōrudingusu Kabushiki Gaisha, TYO: 6460) is a Japanese holding company formed from the merger of Sega and Sammy in 2004. Both companies are involved in the amusement business (Sega with arcade games, Sammy with pachinko machines), and Sega's fame also comes from their video game franchises and home consoles.[1]

Company history

According to the first Sega Sammy Annual Report, the merger of the two companies happened due to both companies facing difficulties. According to Chairman Hajime Satomi, Sega has been in the red for nearly ten years,[2] and thus lacked a clear financial base. Sammy, on the other hand feared stagnation and overreliance of its highly profitable pachislot and pachinko machine business, and wanted to divesify it's business in new fields, utilizing Sega's broader range of involvement in different entertainment fields.[3] Together, as the Sega Sammy group, the company has since grown and acquired and founded multiple companies.

Up until 2015, the group was structured in four areas. The "Consumer Business", which contained videogames, toys and animation. The "Amusement Machine Business" which contained Sega's arcade business. The "Amusement Center Business" which contained Sega's amusement centers and theme parks. The "Pachislot and Pachinko Business" is the Sammy Corporation and is the main pillar the groups revenue.[4]

For the better half of the first decade of the holding's existence it has sought the arcade machine sales of Sega, and the pachinko sales of Sammy, as its biggest financial incentive. However a shift happened in the 2010s, leading to the "Group Structure Reform" in 2015. Casinos, resorts and digital games are now the biggest financial incentives. Arcade sales and packaged games from Sega has softened, while further growth in pachinko sales is not anticipated.[5]

Today the group is structured around the entertainment, resort and pachinko/pachislot industries. With the exception of Sega's theme park business (Sega Live Creation), all of the consumer, amusement machine and amusement center businesses are now at the entertainment sector of the group, led by Sega.[6]

Performance

Sales[7]

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Pachislot and Pachinko Machines

millions of yen

280,109 265,631 211,539 145,582 161,691 160,376 212,060 212,189 142,281 181,834 149,122
Amusement Machine Sales

millions of yen

72,416 71,512 75,454 71,061 61,926 45,117 47,237 49,929 39,134 38,604 45,480
Amusement Center Operations

millions of yen

77,847 106,245 103,850 91,226 71,310 54,788 45,695 44,608 42,707 43,216 41,432
Consumer Business

millions of yen

74,266 106,245 119,593 141,790 131,361 121,575 88,896 85,688 83,874 99,841 111,757
Others

millions of yen

25,007 19,497 17,800 9,315 2,904 2,821 2,843 3,087 13,409 14,513

Operation income[7]

2005 2006

2007

2008

2009

2010

2011

2012

2013

2014

2015
Pachislot and Pachinko Machines

millions of yen

103,930 99,847 71,102 8,443 14,528 29,502 64,284 71,040 23,534 45,292 25,796
Amusement Machine Sales

millions of yen

7,423 12,176 11,682 7,152 6,890 7,094 7,317 7,415 1,902 -1,264 -2,356
Amusement Center Operations

millions of yen

5,472 9,244 132 -9,807 -7,520 -1,338 342 355 1,194 60 -946
Consumer Business

millions of yen

-8,809 9,244 1,748 -5,989 -941 6,332 1,969 -15,182 -732 2,089 4033
Others

millions of yen

-541 -1,712 -1,345 -74 353 336 -10 234 -484 -1,200

Structure

Pachislot and Pachinko machine business

Entertainment contents business

Resort business

Others

Related companies

Current affiliates

Former affiliates

See also

References

External links

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