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Sega to undergo continuing reorganization

  According to reports by Reuters and Bloomberg, Sega will be undergoing continual reorganization under their new president, Hisao Oguchi. The plans were revealed during Oguchi's inauguration ceremony this week. Under Oguchi, Sega will consolidate their current seven divisions into 5 while creating two completely new divisions, one of which will focus on Sega's sports titles while the other will focus on other major releases under the direction of Shenmue creator Yu Suzuki. Sega will also be creating a new company to oversee and manage all the different studios. Additionally, Sega will be undergoing an internal restructuring in an attempt to make the distinction between management and development more clear, so as to avoid company in-fighting that has adversely affected the company these past years.

   Another goal of this restructuring is to strengthen sales by focusing on the consumer sector as the market continues to expand. Sega plans to double their annual sales within five years, up to 20 million in sales from this year's projected estimate of 9.25 million. Sega's sales through the first quarter of 2003 topped 1.45 million, beating out their own goal of 1.22 million copies.

   Sega still creates a steady income from arcades in Japan, but will attempt to streamline their arcade operations by shutting down current arcades that are failing to generate income while opening new arcades in different locations. In addition, they will be working closely with arcade proprietors to help them create more cost efficient operations by strengthening rental agreements and offering easy updates via network connectivity. Sega is also planning a new type of entertainment facility, targeted towards older audiences that don't normally visit gaming arcades.

7/26/2003 Ryan Hartmann

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