Rumors of Microsoft and EA Vying for Sega Grow

According to a report issued by the Asian Wall Street Journal, both Electronics Arts Inc. and Microsoft Corporation are apparently separately considering the possibility of acquiring Sega Corporation, the Japanese videogame manufacturer. Sega has fallen on leaner times since its heyday in the 1990s. Sega's net profit forecast for 2002-03 was recently reduced by 90%, and layoffs are anticipated, as well as a reorganization of its U.S. operations. Sega issued an announcement earlier in the month of a planned merger with Sammy Corporation, the manufacturer of pinball-style games. Microsoft could gain a stronger foothold in the Japanese market that it lacks currently due to unsold inventory of Xbox consoles and games. EA also stands to significantly gain influence by acquiring Sega and could also eliminate its competitor, Sammy Corporation as an additional plus. None of the parties offered any comment as to the potential acquisition of Sega Corporation.

Share: