Operations
Sega Sammy operations take place in four distinctive segments
- Pachinko / Pachislot (Sammy)
- Amusement Machines (Sega)
- Amusement Facilities (Sega)
- Consumer Business (Sega)
Although previous to the merger Sammy produced games itself and even had a small chain of arcade operations that business was integrated into Sega.
The most important segment of the company is Sammy's Pachinko / Pachislot segment. In the past 80% of profits was generated in the Pachislot business. The companies former flagship Hokuto No Ken is estimated to be produced 630,000 times. However, a change in regulations lead to deemphasizing the gambling aspect of Pachislot and allowed for more flexibility in the creation of Pachinko machines so that starting in 2007 the Japanese Pachislot market decreased from approximately 2,000,000 annually sold machines to 800,000 in 2009. Although the Pachinko market did not grow in unit terms better machines appeared and prices increased ca. 25%. Sammy managed to rebuild its traditionally weak Pachinko segment with its September 2008 release of CR Hokuto No Ken, one of the best selling Pachinko machines of the last couple of years and further strengthened the segment by the acquisition of Taiyo Elec. Sales targets for the business year ending in March 2010 are 450,000 Pachinko and 180,000 Pachislot machines.
Sega's Consumer Business segment is producing and distributing games for consoles and pc. The financial year 2010 plan was calling for sales of approximately 30 million games.
Read more about this topic: Sega Sammy Holdings
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