The "bigger is better" corporate mentality has struck the video game industry recently. Activision is in the process of merging with the games division of Vivendi Universal, and just last month, and Electronic Arts made a less-than-stellar offer to purchase Take 2 Interactive. Simon Jeffrey, CEO of Sega of America, reassures us "That's not an area we want to play in right now. We have no interest in being acquired, we are very happy with our position right now."
Currently Sega is the sixth largest games publisher in the US. "There is plenty of room for smaller companies to be successful and profitable in this business. You don't have to be number one or number two. You can be number six very happily," Jeffrey said. Sega recently scored a hit on Nintendo's Wii and DS systems with Mario & Sonic at the Olympic Games selling over 5 million copies in the first three months. Not many non-Nintendo published games have seen much success on the Wii. Compared to other "hardcore" games like Halo 3 that gain a large burst early on, but soon fade in sales, Mario & Sonic have enjoyed a longer steadier sales period as perpetual word of mouth keeps consumers coming back for more.
Sega is offering a good mix of franchises this year including licenced games for "Iron Man" and "Hulk" movies, a Sonic RPG for the DS, and a remake of Sega classic "Golden Axe". "We really think this year we've hit our stride getting that portfolio mix just right," Jeffrey said.
The "bigger is better" corporate mentality has struck the video game industry recently. Activision is in the process of merging with the games division of Vivendi Universal, and just last month, and Electronic Arts made a less-than-stellar offer to purchase Take 2 Interactive. Simon Jeffrey, CEO of Sega of America, reassures us "That's not an area we want to play in right now. We have no interest in being acquired, we are very happy with our position right now."
