Editing Sega

{{Real world}}
{{Tab
|title1 = Sega Corporation
|tab2   = Sega of America
|tab3   = Sega Europe
}}
{|style="text-align:center" align="right"
|[[File:SEGA.svg|250px]]<br/>Current American logo
|
|
|}
{{nihongo|'''Sega Corporation'''|株式会社セガ|[[wikipedia:Kabushiki gaisha|Kabushiki gaisha]] Sega|stylized as '''SEGA'''}} is a Japanese multinational entertainment company, primarily in the business of video games. The company had success with both arcades and home consoles, but in 2001, Sega officially left the consumer console business and since began concentrating on software development instead for multiple third-party platforms, as well as general production of otaku goods such as arcades and [[TMS Entertainment|anime production]].

Sega's main offices, as well as the main offices of its domestic division, Sega Corporation, are located in Shinagawa-ku, Tokyo, Japan. Sega's European division, '''Sega Europe Ltd.''', is headquartered in the Brentford area of London. Sega's North American division, '''Sega of America Inc.''', is headquartered in Irvine, California, having moved there from San Francisco, California in 2015. They were originally based in Redwood City, California.<ref>{{Cite web |url=http://www.sega.com/corporate/ |title=Corporate |work=Sega |archiveurl=http://web.archive.org/web/20080711072551/http://www.sega.com/corporate/ |archivedate=11 July 2008 |accessdate=5 August 2018}}</ref><ref>{{Cite web |last=Angwin |first=Julia |url=http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/1998/06/11/BU14012.DTL |title=Sega Expected to Move HQ To S.F. From Redwood City |date=11 June 1998 |archiveurl=http://web.archive.org/web/20030729064053/http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/1998/06/11/BU14012.DTL |archivedate=29 July 2003 |accessdate=4 August 2018}}</ref> '''<nowiki>Sega Publishing Korea'</nowiki>'''s headquarters are located in Jongno, Seoul, Korea. On 1 November 2000, Sega changed its company name from '''Sega Enterprises, Ltd.''' to '''Sega Corporation'''. <ref>{{Cite web |author=IGN Staff |url=http://www.ign.com/articles/2000/06/30/sega-enterprises-to-change-name |title=Sega Enterprises to Change Name |date=29 June 2000 |publisher=[[Wikipedia:IGN|IGN]] |archiveurl=https://web.archive.org/web/20180828021218/http://www.ign.com/articles/2000/06/30/sega-enterprises-to-change-name |archivedate=28 August 2018 |accessdate=28 August 2018}}</ref>

As of 1 July 2012, '''Sega Australia''' and all other European operations apart from United Kingdom have closed down due to economic pressure. However, all the employees from Sega Australia formed a company called '''Five-Star Games''' which handles the distribution of Sega products in Australia, still located in Sydney, New South Wales.

Sega, along with their sub-studios, is known for its many multi-million selling game franchises including ''[[Sonic the Hedgehog series|Sonic the Hedgehog]]''. In fact, the character, [[Sonic the Hedgehog|Sonic]] is the company's mascot.

==History==
===Origins (1945–1989)===
Sega was founded in 1940 as '''Standard Games''' (later Service Games) in [[wikipedia:Honolulu|Honolulu, Hawaii]], United States,<ref name="Segacorphist">{{Cite web |url=http://www2.sega.com/corporate/corporatehist.php |title=Corporate History |date=1999 |work=[[Sega/Sega of America|Sega of America]] |archiveurl=http://web.archive.org/web/20081220144004/ttp://www2.sega.com/corporate/corporatehist.php |archivedate=20 December 2008 |accessdate=5 August 2018}}</ref> by Marty Bromely, Irving Bromberg, and James Humpert <ref>{{Cite book |last1=Loguidice |first1=Bill |author-link1=https://www.google.co.id/search?hl=id&tbo=p&tbm=bks&q=inauthor:"Bill+Loguidice" |last2=Barton |first2=Matt |author-link2=https://www.google.co.id/search?hl=id&tbo=p&tbm=bks&q=inauthor:"Matt+Barton" |date=24 February 2014 |title=Vintage Game Consoles: An Inside Look at Apple, Atari, Commodore, Nintendo, and the Greatest Gaming Platforms of All Time |publisher=CRC Press |page=169 |isbn=1135006504}}</ref> to provide coin-operated amusements for American servicemen on military bases. Bromely suggested that the company move to Tokyo, Japan in 1951 and in May 1952 "'''Se'''rvice '''Ga'''mes of Japan" was registered.

In 1954, another American businessman, David Rosen, moved to Tokyo and established the company Rosen Enterprises, Inc., in Japan to export art. When the company imported coin-operated instant photo booths, it stumbled on a surprise hit: the booths were very popular in Japan. Business was booming, and Rosen Enterprises expanded by importing coin-operated electro-mechanical games.

Rosen Enterprises and Service Games merged in 1965 to create Sega Enterprises. Within a year, the new company released a submarine-simulator game called ''Periscope''<ref>{{Cite web |url=http://www.arcade-history.com/?n=periscope&page=detail&id=14579 |title=Periscope <nowiki>[</nowiki>Coin-Op<nowiki>]</nowiki> Gun Game by Sega Enterprises, Ltd. <nowiki>[</nowiki>Tokyo, Japan<nowiki>]</nowiki> |work=Arcade History |archiveurl=http://web.archive.org/web/20131102084429/http://www.arcade-history.com/?n=periscope&page=detail&id=14579 |archivedate=2 November 2013 |accessdate=5 August 2018}}</ref> that became a smash-hit worldwide.

In 1969, [[wikipedia:Gulf+Western|Gulf+Western]] purchased Sega, and Rosen was allowed to remain CEO of the Sega division. Under Rosen's leadership, Sega continued to grow and prosper. In 1976, they released a large screen TV, Sega-Vision (not to be confused with their portable media player, Sega Vision).

In the video game arcades, Sega was known for games such as ''[[wikipedia:Zaxxon|Zaxxon]]'', the first game to employ [[wikipedia:axonometric projection|axonometric projection]], and ''[[wikipedia:Hang-On|Hang-On]]'', the world's first full-body-experience video game.

Sega's revenues would hit $214 million by 1982 and in 1983,<ref name="Segacorphist"/> Sega would release its first video game console, the [[Wikipedia:SG-1000|SG-1000]], the first 3D arcade video game, ''[[wikipedia:SubRoc-3D|SubRoc-3D]]'', which used a special periscope viewer to deliver individual images to each eye, and the first laser-disc arcade game, ''[[wikipedia:Astron Belt|Astron Belt]]''.

In the same year, a number of events led to a change of ownership at Sega. Longtime G+W chairman Charles Bluhdorn died unexpectedly and was succeeded by [[Paramount Pictures]] executive Martin S. Davis, who wanted to prioritize units that were key to the conglomerate's growth, such as the namesake studio, with smaller units like Sega being deemed a drag to G+W's shares.<ref>{{Cite web |url=https://www.nytimes.com/1999/10/06/business/martin-davis-72-created-modern-paramount.html |title=Martin Davis, 72; Created Modern Paramount |publisher=The New York Time |last=Wyatt |first= Edward |date= 6 October 1999 |accessdate=22 April 2022}}</ref> Additionally, the [[wikipedia:video game crash of 1983|video game crash]] in North America dealt a major hit to Sega's revenues, leading to Rosen resigning under pressure by the end of the year. In 1984, in two separate deals, G+W sold the U.S. assets of Sega - primarily their arcade manufacturing and amusement division - to pinball manufacturer [[wikipedia:Bally Technologies|Bally Manufacturing Corporation]], while the Japanese assets of Sega - consisting of the company's research & development teams and the video game archive - were purchased for $38 million by a group of investors led by Rosen and Hayao Nakayama, a Japanese businessman who owned Esco Boueki (Esco Trading) an arcade game distribution company<ref>{{Cite web |url=http://www.nytimes.com/1993/07/04/business/sega-takes-aim-at-disney-s-world.html?pagewanted=4 |title=Sega Takes Aim at Disney's World (Page 4 of 4) |publisher=The New York Times |last=Pollack |first=Andrew Sunday |date=4 July 1993 |archiveurl=http://web.archive.org/web/20130502234210/http://www.nytimes.com/1993/07/04/business/sega-takes-aim-at-disney-s-world.html?pagewanted=4 |archivedate=2 May 2013 |accessdate=10 November 2018}}</ref> that had been acquired by Rosen in 1979. Nakayama became the new CEO of Sega, and Rosen became head of its subsidiary in the United States. As part of the agreements, Bally obtained a two-year right of first refusal to release Sega's games in North America, while Sega obtained a similar license to release Bally's games in Japan for the same time frame.<ref>{{cite web |url=https://archive.org/details/re-play-volume-11-issue-no.-2-november-1985-600DPI/RePlay%20-%20Volume%2011%2C%20Issue%20No.%202%20-%20November%201985/page/168 |title=The Replay Years: Reflections from Eddie Adlum |publisher=RePlay Magazine, via Internet Archive |last= Adlum |first= Eddie |date=November 1985 |accessdate=8 July 2024}}</ref>

The Japanese sale was backed by electronics conglomerate [[wikipedia:SCSK|CSK]]. Upon closing of the deal, Sega Enterprises was renamed Sega Enterprises Ltd., moved its headquarters to Japan, and two years later, began trading its shares of stock in the Tokyo Stock Exchange. David Rosen's friend, Isao Okawa, the chairman of CSK, became chairman of Sega.
In 1986, Sega of America was poised to take advantage of the resurgent video game market in the United States.

Sega would also release the [[Sega Master System]] and the first [[Alex Kidd]] game, who would be Sega's unofficial mascot until 1991 when [[Sonic the Hedgehog]] took over. While the Master System was technically superior to the NES,<ref>{{Cite web |url=http://classicgaming.gamespy.com/View.php?view=ConsoleMuseum.Detail&id=28&game=10 |title=Sega Master System (SMS) - 1986-1989 |work=Classic Gaming Museum |archiveurl=http://web.archive.org/web/20080206180907/http://classicgaming.gamespy.com:80/View.php?view=ConsoleMuseum.Detail&id=28&game=10 |archivedate=6 February 2008 |accessdate=5 August 2018}}</ref> it failed to capture market share in North America and Japan due to highly aggressive strategies by [[Nintendo]] and ineffective marketing by [[wikipedia:Tonka|Tonka]] in the United States. However, it did dominate the European and Brazilian markets until Sega discontinued the system in Europe in 1996, and in Brazil in 2000.

===Sega as a major console manufacturer (1989–2001)===
====Sega Mega Drive====
{{Main|Sega Mega Drive}}
[[File:Mega Drive1.png|thumb|250px|The Sega Mega Drive.]]
With the introduction of the [[Sega Mega Drive]], titled "Sega Genesis" in America due to legal reasons, Sega of America launched an anti-[[Nintendo]] campaign to carry the momentum to the new generation of games, with its slogan "Genesis does what Nintendon't." This was initially implemented by Sega of America President, Michael Katz.<ref>{{Cite web |url=http://www.sega-16.com/feature_page.php?id=103&title=Interview:%20Michael%20Katz |title=Interview: Michael Katz |first=Ken |last=Horowitz |publisher=Sega-16 |accessdate=28 March 2009 |date=28 April 2006}}
</ref> When Nintendo launched its Super Nintendo Entertainment System in 1991, Sega changed its slogan to "Welcome to the next level."

[[File:Sega CD Model 1.png|thumb|250px|left|The [[Sega CD]].]]
The same year, Sega of America's leadership passed from Michael Katz to [[Tom Kalinske]], who further escalated the "[[wikipedia:console wars|console war]]" that was developing.<ref>{{Cite web |url=http://www.sega-16.com/feature_page.php?id=245&title=Tom%20Kalinske:%20American%20Samurai |title=Tom Kalinske: American Samurai |first=Ken |last=Horowitz |publisher=Sega-16 |accessdate=28 March 2009 |date=18 February 2005}}</ref> As a preemptive strike against the release of the Super Nintendo, Sega re-branded itself with a new game and mascot, Sonic the Hedgehog. With his hip attitude and style, he was marketed to seem "cooler" than [[Mario]], Nintendo's mascot.<ref name="ce2.coos-bay.k12.or.us">{{Cite web |url=http://www.ce2.coos-bay.k12.or.us/Studentwebs/Danny/90s.htm |title=The History of Sega: The 1990s |last=Chapman II |first=Danny L. |year=2003 |work=Community Experience for Career Education |archiveurl=http://web.archive.org/web/20030623133523/http://www.ce2.coos-bay.k12.or.us:80/Studentwebs/Danny/90s.htm |archivedate=23 June 2003 |accessdate=5 August 2018}}</ref> This shift led to a wider success for the Genesis and would eventually propel Sega to 65% of the market in North America for a brief time. Simultaneously, after much previous delay, Sega released the moderately successful [[Sega CD]] as an add-on feature, allowing for extra storage in games due to their CD-ROM format, giving developers the ability to make longer, more sophisticated games, the most popular of which was Sega’s own ''[[Sonic the Hedgehog CD]]''. ''[[Sonic the Hedgehog 2]]'' was also released at this time, and became the most successful game Sega ever made,<ref name="gamasutra">{{Cite web |last=Boutros |first=David |url=http://www.gamasutra.com:80/view/feature/1851/a_detailed_crossexamination_of_.php |title=A Detailed Cross-Examination of Yesterday and Today's Best-Selling Platform Games |publisher=Gamasutra |date=4 August 2006 |archiveurl=http://web.archive.org/web/20080209182815/http://www.gamasutra.com:80/view/feature/1851/a_detailed_crossexamination_of_.php |archivedate=9 February 2008}}</ref> selling six million copies as of June 2006.<ref name="gamasutra"/>

Despite their massive advances in the arcades, Sega’s share of the home market plummeted to 35% by 1994. That year, Sega released the [[Sega 32X]] in an attempt to upgrade the [[Mega Drive|Mega Drive/Genesis]] to the standards of more advanced systems. It sold well initially, but had problems with lack of software and hype about the upcoming [[Sega Saturn]] and Sony's PlayStation.<ref>{{Cite web |url=http://www.thegameconsole.com/videogames94.htm A History of Home Video Games from Atari to Xbox, Playstation and Wii |title=A History of Home Video Games from Atari to Xbox, Playstation and Wii |year=2006 |publisher=The Game Console |accessdate=4 August 2018}}</ref> Within a year, it was in the bargain bins of many stores.<ref>{{Cite web |url=http://www.planetdreamcast.com:80/about/sega/ |title=About Sega |publisher=PlanetDreamcast |year=1999 |archiveurl=http://web.archive.org/web/20000815080508/http://www.planetdreamcast.com:80/about/sega/ |archivedate=15 August 2000}}</ref> Also in 1994, Sega launched the [[Sega Channel]], a subscription gaming service delivered by local cable companies affiliated with Time-Warner Cable or TCI through which subscribers received a special cartridge adapter that connected to the cable connection. At its peak, the Sega Channel had approximately 250,000 subscribers.<ref>{{Cite web |last=Buchanan |first=Levi |url=http://www.ign.com/articles/2008/06/11/the-sega-channel |title=The SEGA Channel |date=11 June 2008 |publisher=[[Wikipedia:IGN|IGN]] |archiveurl=http://web.archive.org/web/20140227045458/http://www.ign.com/articles/2008/06/11/the-sega-channel |archivedate=27 February 2014 |accessdate=4 August 2018}}</ref>

====Sega versus Accolade====
In 1992, Sega lost the [[wikipedia:Sega v. Accolade|Sega v. Accolade]] case, which involved independently produced software for the [[Sega Mega Drive]] console. Accolade had copied a small amount of Sega's code to achieve compatibility with the Mega Drive platform. The verdict set a precedent that copyrights do not extend to non-expressive content in software that a system requires to be present to run the software.<ref>{{Cite web |url=http://cse.stanford.edu:80/class/cs201/projects-99-00/intellectual-property-law/reverse_engineering.htm |title=Reverse Engineering |work=Stanford University |archiveurl=http://web.archive.org/web/20030228235133/http://cse.stanford.edu:80/class/cs201/projects-99-00/intellectual-property-law/reverse_engineering.htm |archivedate=28 February 2003 |accessdate=4 August 2018}}</ref> The case in question stems from the nature of the console video game market. Hardware companies often sell their systems at or below cost and rely on other revenue streams such as in this case, game licensing. Sega was attempting to "lock out" game companies from making Mega Drive/Genesis games unless they paid Sega a fee (something its competition has done in the past). Their strategy was to make the hardware reject any cartridge that did not include a Sega trademark. If an unlicensed company included this trademark in their game, Sega could sue the company for trademark infringement. Though Sega lost this lawsuit, all later Sega systems seemed to incorporate a similar hardware requirement.

====Sega Saturn====
{{Main|Sega Saturn}}
[[File:Sega Saturn Mk1.png|thumb|250px|right|The first model of the [[Sega Saturn]].]] 
On May 11, 1995, Sega released the [[Sega Saturn]] (with ''[[wikipedia:Virtua Fighter (arcade game)|Virtua Fighter]]'') in the American market, which utilized a 32-bit processor and preceded both the PlayStation and the Nintendo 64. However, poor sales in the West (including the traditional stronghold markets in Europe) led to the console being abandoned.<ref name="ce2.coos-bay.k12.or.us"/> Notable titles include several titles exclusive to the Japanese market, like ''Radiant Silvergun'' and ''Sakura Taisen'', involving fighting games like ''Last Bronx'', rail shooters such as ''Panzer Dragoon'' and ''The House of the Dead'' and a few well regarded RPGs: ''Panzer Dragoon Saga'', ''Grandia'', and ''Shining Force 3''.

In 1997, Sega entered into a short-lived merger with Bandai. However, it was later called off, citing "cultural differences" between the two companies.<ref>{{Cite web |last=Johnston |first=Chris |url=http://www.gamespot.com/articles/sega-bandai-merger-canceled/1100-2466444/ |title=Sega, Bandai Merger Canceled |publisher=[[Wikipedia:GameSpot|GameSpot]] |date=27 May 1997 |archiveurl=http://web.archive.org/web/20150716054727/http://www.gamespot.com/articles/sega-bandai-merger-canceled/1100-2466444/ |archivedate=16 July 2015}}</ref> Entertainment fun center GameWorks was founded in 1997 as well as the now defunct [[wikipedia:Sega World|Sega World]] theme parks.

====Dreamcast====
{{Main|Dreamcast}}
[[File:Sega Dreamcast.png|thumb|250px|left|The [[Dreamcast]].]]
In September 1999 (the date 9 September 1999 was featured heavily in American promotions), Sega launched the [[Dreamcast]] game console in North America. The Dreamcast was competitively priced, partly due to the use of off-the-shelf components, but it also featured technology that allowed for more technically impressive games than its direct competitors, the Nintendo 64 and PlayStation. An analog 56k modem was also included, allowing gamers to play multiplayer games online on a home console for the first time, featuring titles such as the action-puzzle title ''Chu Chu Rocket'', ''Phantasy Star Online'', the first console-based MMORPG, and the innovative ''Alien Front Online'', the first console game with online voice chat.

The Dreamcast's launch in Japan was a failure. Launching with a small library of software and in the shadow of the upcoming PS2, the system would not gain great success, despite several successful games in the region. The Western launch a year later was accompanied by a large amount of both 1st party and 3rd party software and an aggressive marketing campaign. It was extremely successful and earned the distinction of "most successful hardware launch in history," selling a then-unprecedented 500,000 consoles in its first week in North America.<ref>{{Cite web |last=Barr |first=Adrienne |url=http://www.vidgame.net/SEGA/DC.html |title=Sega Dreamcast (HKT-3020) |work=VidGame |year=2002 |archiveurl=http://web.archive.org/web/20040721061945/http://www.vidgame.net:80/SEGA/DC.html |archivedate=21 July 2004 |accessdate=5 August 2018}}</ref> Sega was able to hold onto this momentum in the US almost until the launch of [[Sony|Sony's]] [[PlayStation 2]]. The Dreamcast is home to several innovative and critically acclaimed games of the time, including one of the first cell-shaded titles, ''[[Jet Set Radio]]''; ''Seaman'', a game involving communication with a fish-type creature via microphone; a rhythm game involving the use of maracas, ''[[Samba de Amigo]]'', ''[[wikipedia:Shenmue|Shenmue]]'', an adventure game of vast scope with free-form gameplay and a striking attempt at creating a detailed in-game city and'' [[Sonic Adventure]]'', the first true 3D action/adventure Sonic game which was notable for being the top-selling game for the Dreamcast, selling 2.5 million copies. Despite receiving critical acclaim, these titles failed to garner much public attention in the face of the upcoming PlayStation 2 launch.

Faced with debt and competition from Sony's PlayStation 2, [[Nintendo]]'s [[Nintendo GameCube|GameCube]], and [[Microsoft]]'s [[Xbox]] (although Microsoft hadn't entered the video game market at this point), Sega officially discontinued the Dreamcast hardware in 2001. The final game Sega released for it was ''NHL 2K2''. This was the last SEGA console to be released in the USA, while in Japan, Advanced Pico Beena was the last console to be released in Japan.

===Shift to a third-party software manufacturer (2001–2005)===
On 23 January 2001, a story ran in ''[[wikipedia:Nihon Keizai Shimbun|Nihon Keizai Shimbun]]'' that said Sega was going to cease production of the Dreamcast and develop software for other platforms.<ref>{{Cite web |title=Sega Sinks Console Efforts? |last=Justice |first=Brandon |publisher=[[Wikipedia:IGN|IGN]] |url=http://dreamcast.ign.com/articles/090/090435p1.html |archiveurl=http://web.archive.org/web/20020613212945/http://dreamcast.ign.com/articles/090/090435p1.html |archivedate=13 June 20003 |date=23 January 2001}}</ref> After the initial denial, Sega Japan then put out a press release confirming they were considering producing software for [[PlayStation 2]] and [[Game Boy Advance]] as part of their "New Management Policy".<ref>{{Cite web |title=弊社ドリームキャスト事業に関する一部の報道について |publisher=[[Sega]] |url=http://sega.jp/corp/release/2001/0124/ |date=24 January 2001 |archiveurl=https://web.archive.org/web/20071202025805/http://sega.jp/corp/release/2001/0124/ |archivedate=2 December 2007}}</ref><ref>{{Cite web |title=Sega Confirms PS2 and Game Boy Advance Negotiations |first=Anoop |last=Gantayat |publisher=[[Wikipedia:IGN|IGN]] |url=http://dreamcast.ign.com/articles/090/090442p1.html |date=23 January 2001}}</ref> Then on 31 January 2001, Sega of America officially announced they were becoming a third-party software publisher.<ref name="SegaRestructure">{{Cite web |title=Sega announces drastic restructuring |url=http://www.gamespot.com/news/2680518.html |first=Shahed |last=Ahmed |publisher=GameSpot |date=31 January 2001}}
</ref>

The company has since developed primarily into a platform-neutral software company, known as a "third-party publisher", that creates games that will launch on a variety of game consoles produced by other companies, many of them former rivals, the first of which was a port of ''Chu Chu Rocket'' to [[Nintendo]]'s Game Boy Advance.

Arcade units are still being produced, first under the Sega NAOMI name, and then with subsequent releases of the Sega NAOMI 2, Sega HIKARU, Sega Chihiro, Triforce (in collaboration with Nintendo and Namco), and the Sega Lindbergh.

By 31 March 2002, Sega had five consecutive fiscal years of net losses.<ref>{{Cite web |url=http://www.taipeitimes.com/News/worldbiz/archives/2003/03/13/197881 |title=Analysts say Sega taking its toll on CSK's bottom line |publisher=Taipei Times |work=Bloomberg |date=13 March 2003 |page=12 |archiveurl=http://web.archive.org/web/20030402160854/http://www.taipeitimes.com:80/News/worldbiz/archives/2003/03/13/197881 |archivedate=2 April 2003 |accessdate=10 November 2018}}</ref> To help with Sega's debt, CSK founder Isao Okawa, before his death in 2001, gave the company a $695.7 million private donation,<ref>{{Cite web |url=http://edition.cnn.com/2001/BUSINESS/asia/03/18/tokyo.okawalegacy/index.html |title=Late Sega exec leaves legacy, new leadership |publisher=CNN |first=Kristie |last=Lu Stout |date=19 March 2001 |archiveurl=http://web.archive.org/web/20121207092834/http://edition.cnn.com:80/2001/BUSINESS/asia/03/18/tokyo.okawalegacy/index.html |archivedate=7 December 2012 |accessdate=10 November 2018}}</ref> and also talked to Microsoft about a sale or a merger with their Xbox division, but those talks failed.<ref>{{Cite web |last=Gaither |first=Chris |url=http://www.nytimes.com/2001/11/04/business/microsoft-explores-a-new-territory-fun.html?pagewanted=2 |title=Microsoft Explores A New Territory: Fun (Page 2 of 5) |work=The New York Times |date=4 November 2001 |archiveurl=http://web.archive.org/web/20130504135821/http://www.nytimes.com/2001/11/04/business/microsoft-explores-a-new-territory-fun.html?pagewanted=2 |archivedate=4 May 2013 |accessdate=10 November 2018}}</ref> On 13 February 2003, Sega announced plans to merge with [[wikipedia:Sammy Corporation|Sammy]], but plans fell through. Discussions also took place with Namco, Bandai, Electronic Arts and again with Microsoft.

With this shift to software development, this affected Sega's Australian operations. Sega Ozisoft ceased to operate in its current form with Sega Enterprises selling its share in Sega Ozisoft and was bought over by Infogrames in 2002. This led to Infogrames having an Australian presence for the first time but decided to change the company name for its Australian operations to GameNation. Sega then went to find an Australian distributor, and made a deal with THQ Asia Pacific, who at the time until 2006 had deals with Capcom. In 2003 GameNation was changed to Atari Australia and then challenged THQ Asia Pacific to the distribution rights to Sega's IPs in Australia but failed. In early 2008 Sega Corporation announced that Sega would re-establish an Australian presence, effectively ending THQ's distribution of Sega's products in Australia and would be a subsidiary of Sega of Europe, rather than being a separate local subsidiary like Atari Australia, Nintendo Australia and THQ Asia Pacific.

In August 2003, Sammy bought the outstanding 22% of shares that CSK had,<ref>{{Cite web |last=Niizumi |first=Hirohiko |url=http://www.gamespot.com/news/2004/05/18/news_6098677.html |title=Sammy merging with Sega |publisher=[[Wikipedia:GameSpot|GameSpot]] |date=10 June 2004 |archiveurl=http://web.archive.org/web/20040611003203/http://www.gamespot.com:80/news/2004/05/18/news_6098677.html |archivedate=11 June 2004 |accessdate=10 November 2018}}</ref> and Sammy chairman Hajime Satomi became CEO of Sega. With the Sammy chairman at the helm of Sega, it has been stated that Sega's activity will focus on its profit-making arcade business rather than its loss-making home software development. In late December, Sega released ''[[Sonic Heroes]]'' selling over 2 million copies. It was the first ''Sonic'' game to be on both the [[Xbox]] and the PlayStation 2.

[[File:SegaSammy.svg|thumb|250px|right|The [[Sega Sammy Holdings]] logo.]]
During the middle of 2004, Sammy bought a controlling share in Sega Corporation at a cost of $1.1 billion, creating the new company [[wikipedia:Sega Sammy Holdings|Sega Sammy Holdings]], one of the biggest game manufacturing companies in the world. With the merger, Sega reabsorbed its second party studios and began to reorganize them. Tetsuya Mizuguchi, father of ''[[wikipedia:Sega Rally|Sega Rally]]'' and ''[[wikipedia:Space Channel 5|Space Channel 5]]'', cited the changes in the corporate culture after the Sega-Sammy merger.<ref>{{Cite web|author=Kikizo Staff|url=http://archive.videogamesdaily.com/features/tetsuya_mizuguchi_iv_oct05_p1.asp|title=Tetsuya Mizuguchi Interview 2005|date=13 October 2005|accessdate=13 August 2008.</ref>

In 2005, [[Mike Hayes]] became head of Sega in Europe. He would help to transition the company into becoming a third-party developer. He would later become head of Sega America in 2009.

On 25 January 2005, Sega's Visual Concepts, a studio Sega dubbed a "1.5" developer, was shut down by Take-Two Interactive. Sega used the parlance "1.5" as a mid-point of sorts between first-party and second-party developer status: that is, a wholly owned studio that would otherwise be known as a first-party developer but was outside of internal development teams. Visual Concepts was known for many Sega Sports games including the ''ESPN NFL Football'' series, formerly ''NFL2K''. The sale also came with Visual Concept's wholly-owned subsidiary Kush Games. Take Two subsequently announced the start of the publishing label 2K Games because of this purchase.

===Current status (2006–present)===
By the end of 2005, Sega experienced strong earnings growth across multiple divisions. Contributing to the company's success were strong pachinko sales,<ref>{{Cite web |url=http://www.segasammy.co.jp/english/pdf/release/Notice070206-Adjustment%20_2_.pdf |title=Notice of Adjustment to the Forecasts of Whole-Year Operating Results for the Year Ending March 31, 2006 |date=31 March 2006 |publisher=Sega Sammy Holdings |archiveurl=http://web.archive.org/web/20070925210730/http://www.segasammy.co.jp/english/pdf/release/Notice070206-Adjustment%20_2_.pdf |archivedate=25 September 2007 |accessdate=10 November 2018|format=PDF}}</ref> and sales of software titles ''Ryu Ga Gotoku'' (known as ''Yakuza'' outside of Asia), ''Mushiking'', and ''[[Sonic the Hedgehog (2006)|Sonic the Hedgehog]]''.

In an effort to appeal to western tastes, they partnered with Obsidian Entertainment to develop a new RPG for the [[PlayStation 3]], [[Xbox 360]], and PC based on the Aliens Franchise.<ref>{{Cite web |last=Bramwell |first=Tom |url=http://www.gamesindustry.biz/content_page.php?aid=15612 |title=SEGA signs Obsidian for next-generation RPG |publisher=Games Industry |date=23 March 2006 |archiveurl=http://web.archive.org/web/20071011110302/http://www.gamesindustry.biz/content_page.php?aid=15612 |archivedate=11 October 2007 |accessdate=10 November 2018}}</ref> The partnership was the latest in a series of collaborations with western video game studios, including Monolith Productions (''Condemned: Criminal Origins''), Bizarre Creations (''The Club''), and Silicon Knights (who have yet to announce their project with Sega).

That desire to have a more Western appeal for Sega was shortly followed up by Sega acquiring British developer Sports Interactive after a successful run of publishing ''Football Manager 2005'' and ''Football Manager 2006'', in which they managed to sell 1.5 million copies,<ref>{{Cite web |last=Bramwell |first=Tom |url=http://www.gamesindustry.biz/content_page.php?aid=15831 |title=SEGA acquires Sports Interactive |publisher=Games Industry |date=4 April 2006 |archiveurl=http://web.archive.org/web/20060904023142/http://www.gamesindustry.biz/content_page.php?aid=15831 |archivedate=4 September 2006 |accessdate=10 November 2018}}</ref> the deal was said to be worth in the region of £30 million ($52 million) by Miles Jacobson, Sports Interactive's Managing Director.<ref>{{Cite web |author=GamesIndustry.biz staff |url=http://www.gamesindustry.biz/content_page.php?aid=15856 |title=Sega deal is worth "circa GBP 30m" - Sports Interactive boss |publisher=Games Industry |date=4 April 2006 |archiveurl=http://web.archive.org/web/20060627185659/http://www.gamesindustry.biz/content_page.php?aid=15856 |archivedate=27 June 2006 |accessdate=4 August 2018}}</ref> This was, however, not the only developer Sega acquired, as they also purchased American developer Secret Level. Although the terms of the deal were not disclosed,<ref>{{Cite web |last=Gibson |first=Ellie |url=http://www.gamesindustry.biz/content_page.php?aid=15834 |title=SEGA establishes new internal development arm in US |date=4 April 2006 |publisher=Games Industry |archiveurl=http://web.archive.org/web/20071211035924/https://www.gamesindustry.biz/content_page.php?aid=15834 |archivedate=11 December 2007 |accessdate=4 August 2018}}</ref> Secret Level had begun work before being bought by Sega to "recreate a classic Sega franchise" for the PS3 and Xbox 360 in July 2005, which was revealed to be ''Golden Axe: Beast Rider'' later that year.

While Sega continued its expansion in the West, on 8 May 2006, it was announced Sega of Japan begun helping famed Sega developer and [[Sonic Team]] head [[Yuji Naka]] (known for being the main programmer for the original ''[[Sonic the Hedgehog series|Sonic the Hedgehog]]'' games and ''Nights into Dreams'') to start up his own company titled "[[wikipedia:Prope|Prope]]" (Latin for "beside" and "near future")<ref>{{Cite web|url=http://prope.jp/|title=株式会社プロペ 公式サイト}}
</ref> in which Sega helped provide 10% startup capital<ref>{{Cite web |last=Gibson |first=Ellie |url=http://www.gamesindustry.biz/content_page.php?aid=16707 |title=Sonic creator sets up new studio with help from SEGA |publisher=Games Industry |date=8 May 2006 |archiveurl=http://web.archive.org/web/20070301121025/ttp://www.gamesindustry.biz/content_page.php?aid=16707 |archivedate=1 March 2007 |accessdate=10 November 2018}}
</ref> and have the option to publish games produced from the studio if they wished to.

Due to the continued success of Sega’s software sales, the company reported on 17 May 2006 a 31% rise in net profits from that of the previous year of the period ending 31 March 2006, being posted at ¥66.2 billion ($577 million USD), as well as an increase in operating profit growing by 13% from the previous year, being posted at ¥553.2 billion ($4.82 billion USD).<ref>{{Cite web |url=http://www.segasammy.co.jp/english/pdf/release/tanshin_english_final.pdf |title=Consolidated Financial Statements |publisher=[[Sega Sammy Holdings]] |date=16 May 2006 |archiveurl=http://web.archive.org/web/20071202123658/http://www.segasammy.co.jp/english/pdf/release/tanshin_english_final.pdf |archivedate=2 December 2007 |accessdate=10 November 2018}}</ref> Notable titles to have helped Sega increase profits in the west, such as ''[[Shadow the Hedgehog (game)|Shadow the Hedgehog]]'' (which sold over a million copies)<ref>{{Cite web |last=Loughrey |first=Paul |url=http://www.gamesindustry.biz/content_page.php?aid=17074 |title=Sega Sammy reports 31 per cent rise in profits |publisher=Games Industry |date=17 May 2006 |archiveurl=http://web.archive.org/web/20071011110328/http://www.gamesindustry.biz/content_page.php?aid=17074 |archivedate=11 October 2007 |accessdate=10 November 2018}}
</ref> and ''[[Sonic Riders]]'', whilst in Japan, games such as ''Yakuza'', ''Mushiking'' and ''Brain Trainer Portable'' continued to have strong sales.

Although Sega seemed poised to continue increasing profits, the company reported a massive drop of 93% profits for the period ending 30 June 2006 compared to the same period the previous year. Net income for the company dropped from $98.3 million (a year earlier) to $7.12 million for this period as well as total sales dropping from $926.5 million to $809.1 million,<ref>{{Cite web|title=CONSOLIDATED FINANCIAL STATEMENTS |url=http://www.segasammy.co.jp/english/pdf/release/200703_1q_e.pdf |publisher=[[Sega Sammy Holdings]] |date=28 July 2006 |format=PDF}}</ref> Sega reported that the decrease in profits was due to no significant big releases by its slot machine division.

Despite this, Sega reported in November a massive 52% rise in profits for the periods between April and September 2006, compared to the same period last year.<ref>{{Cite web |url=http://www.segasammy.co.jp/english/pdf/release/200609tanshin_englishver_1110.pdf |title=Consolidated Financial Statements |date=10 November |archiveurl=http://web.archive.org/web/20070106075912/http://www.segasammy.co.jp/english/pdf/release/200609tanshin_englishver_1110.pdf |publisher=[[Sega Sammy Holdings]] |archivedate=6 January 2007 |accessdate=10 November 2018}}</ref> Software sales for the company had also increased with 5.75 million. Of those units, 1.76 million were sold in Japan, 1.59 million in Europe, 2.36 million in the US and 30,000 in other regions.<ref>{{Cite web |last=Martin |first=Matt |url=http://www.gamesindustry.biz/articles/sega-sammy-bolstered-with-52-per-cent-profits-rise |title=Sega Sammy sees 52 per cent profits rise |publisher=Games Industry |date=13 November 2018 |archiveurl=http://web.archive.org/web/20080424022853/http://www.gamesindustry.biz/articles/sega-sammy-bolstered-with-52-per-cent-profits-rise |archivedate=24 April 2008 |accessdate=10 November 2018}}
</ref> a number of titles were said to have performed well, in particular ''[[wikipedia:Super Monkey Ball: Touch & Roll|Super Monkey Ball: Touch &amp; Roll]]'' for the Nintendo DS and ''Football Manager 2006'' for the [[Xbox 360]] having sold well. While Sega performed better in 2006, they had slashed their forecasts for the year ending March 2007 by 20% with an anticipated profit of $536.7 million, down from the initial profits of $656.7 million.

On 26 August 2007, IGN Australia announced that Sega would re-establish itself in Australia, ending THQ Asia Pacific's distribution of Sega products in Australia. Sega Australia has a very close relationship with Nintendo Australia, despite Sega Ozisoft and NAL previously being rivals in the Australian gaming market. Sega Australia currently do not distribute in New Zealand, instead like most other Australian publishers, they opt to let retailers take care of the distribution e.g. EB Games Australia and Kmart.

Continuing to prepare more games for the Western market, Sega was able to bridge a partnership with New Line Cinema in September to develop a game for the movie tie-in game ''The Golden Compass'' <ref>http://web.archive.org/web/20061109161314/http://www.sega-europe.com/en/NewsStory/1293.htm</ref> and also partnered themselves with Fox to develop two new games based on the ''Alien'' franchise.<ref>{{Cite web|title=ALIENS |url=http://aliens.sega-europe.com/en/index.html |archiveurl=https://web.archive.org/web/20070106234439/http://aliens.sega-europe.com/en/index.html |archivedate=6 January 2007 }}</ref> Sega then assigned critically acclaimed developers Gearbox software to develop a first person shooter (''Aliens: Colonial Marines'') and Obsidian Entertainment to develop an RPG based on the popular film franchise for the [[PlayStation 3]], [[Xbox 360]], and [[PC]]. The latter was cancelled for undisclosed reasons by Sega. However, ''Aliens: Colonial Marines'' continued production by Gearbox and was released 12 February 2013. Sega has also been publishing games from independent studios (such as Platinum Games).

Sega has also designed an online Flash game site named [[PlaySega]], which included both original games and ports of classic games.<ref>{{Cite web |url=http://playsega.com |archiveurl=https://web.archive.org/web/20100118093853/http://www.playsega.com/ |archivedate=18 January 2010 |title=PlaySEGA}}</ref> Users of this site earned various amounts of "PlaySEGA Rings," which they could have used to customize and house their avatar or enter weekly cash drawings.

On 10 February 2009, Sega approved a patent for two controller designs, one that looks similar to the [[Sega Saturn]] 3D pad with a added touch screen device and one that looks similar to the [[Sega Mega Drive]] 6-button pad.<ref>{{Cite web|url=http://www.patentgenius.com/patent/7488254.html |title=Controller and expansion unit for controller |archiveurl=https://web.archive.org/web/20090803134142/http://www.patentgenius.com/patent/7488254.html |archivedate=3 August 2009}}</ref> Sega also approved a patent for USB Flash Memory cards and hard drive on 7 July 2009.<ref>{{Cite web|url=http://www.patentgenius.com/patent/7556197.html |title=Card stack reader, card thereof, card case, method for manufacturing card, game machine using the same, computer-readable storage medium on which game program is recorded |archiveurl=https://web.archive.org/web/20091217194148/http://www.patentgenius.com/patent/7556197.html |archivedate=17 December 2009}}</ref> Because of these patents, rumors have been spreading that Sega is going to release a new home console based on Ring hardware in 2010 or 2011. There have also been rumors about a "Dreamcast 2", but Sega has announced nothing about these - and rumors is all they are - and the "Sega Phoenix". Sega announced that it has hired a company for a licensed console called "Sega Zone". It's an updated Zone 40 (available in Europe) with 20 classic Sega titles and 30 other games. Sixteen of those games will be motion-controlled. The system will not run additional games that do not come with the system. It's a plug in and play interface. The package will come with two controllers that are similar to the Wii Remote. It's will be released in the Summer and will be priced at £50 (about $80 US). This is an official Sega licensed product, and not a console that has been officially designed by Sega, nor is it rumored Ring-edge console.

On 17 May 2013, Nintendo announced a worldwide partnership with Sega for the Sonic the Hedgehog franchise. The next three ''Sonic'' games (''[[Sonic Lost World]]'', ''[[Mario & Sonic at the Sochi 2014 Olympic Winter Games]]'' and ''[[Sonic Boom: Rise of Lyric]]''/''[[Sonic Boom: Shattered Crystal]]'') would be released exclusively to Nintendo consoles ([[Wii U]] and [[Nintendo 3DS]]). On that same day, Sega Europe announced that the publishing and distribution rights for those three Sonic games in Europe and Australia would be Nintendo's responsibility. Sega, however, published ''Sonic Lost World'' in North America and Japan. On 17 May 2019, Sega and [[Hardlight]] advocated their support for the [[Wikipedia:LGBT community|LGBTQ+]] community.<ref name="LGBT">{{Cite web |url=https://twitter.com/SEGAHARDlight/status/1129402169155887104 |title=SEGA HARDlight on Twitter |work=Twitter |date=17 May 2019 |accessdate=17 July 2019}}</ref>

On 17 April 2023, SEGA announced that it would acquire [[Rovio Entertainment]] for €706 million ($776 million), expanding its portfolio to include the ''Angry Birds'' Franchise<ref>{{cite web|url=https://www.gamesindustry.biz/sega-to-acquire-rovio-in-706-million-deal|title=Sega to acquire Rovio in €706 million deal|date=17 April 2023|accessdate=23 April 2024}}</ref> with the sale finalized on 18 August 2023.<ref>{{cite web|url=https://www.gamesindustry.biz/sega-finalizes-purchase-of-rovio|title=Sega finalizes purchase of Rovio|date=18 August 2023|accessdate=23 April 2024}}</ref>

==Gallery==
{{Gallery start}}
<gallery widths="200">
SEGA (Original 1945 logo).png|The original logo used from 1945 to 1959
Sega (1956 logo).png|The logo used from 1956 to 1975
Sega (1975 logo).png|The logo used from 1975 to 1982
Sega logo JP.svg|The current Japanese logo
Sega 60th logo.svg|The "Go Sega" logo for Sega's 60th anniversary
SegasixtythAnniversary.png|The Japanese "Go Sega" logo
SEGA60th artwork.jpg|Artwork representing the [[Sonic the Hedgehog series|''Sonic the Hedgehog'' series]] for Sega's 60th anniversary
</gallery>
{{Gallery end}}

==References==
{{Reflist|2}}

==External links==
*{{Plain link|url=http://www.sega.com/?t=EnglishUSA|name=Sega of America official website}}
*{{Plain link|http://sega.jp/|Sega of Japan official website}}
*{{Plain link|http://www.sega-europe.com/|Sega Europe official website}}
*{{Plain link|http://www.sega-australia.com/|Sega Australia official website}}
*{{Plain link|https://twitter.com/SEGA|Sega of America}} on {{Plain link|https://twitter.com/|Twitter}}
*{{Plain link|https://twitter.com/SEGA_OFFICIAL|Sega of Japan}} on {{Plain link|https://twitter.com/|Twitter}}
*{{Plain link|https://twitter.com/SEGA_Europe|Sega Europe}} on {{Plain link|https://twitter.com/|Twitter}}
*{{Plain link|http://www.youtube.com/user/SEGA|Sega}} on {{Plain link|http://www.youtube.com/|YouTube}}
*{{WP link|Sega}}
[[de:SEGA]]
[[es:Sega]]
[[fr:Sega]]
[[it:Sega]]
[[ja:セガ]]
[[lt:Sega]]
[[nl:Sega]]
[[pl:Sega]]
[[pt-br:Sega]]
[[ru:Sega]]
[[sr:Sega]]
[[uk:Sega]]
[[zh:世嘉]]
[[Category:Video game companies]]