SEGA Sammy Closes SEGA Korea

SEGA Sammy Closes SEGA Korea

by March 30, 2008

Current financial trouble causes SEGA Sammy to close Korean subsidiary…

Last month SEGA Sammy closed Sammy Europe Limited because of current financial problems, well it seems they have made their next move with the closing of SEGA Korea Ltd. The reason is what they call,”dissolution for global business optimization.” With no current fixed date on the dissolution of SEGA Korea Ltd., SEGA Sammy mentions this will have no “significant impact on the company’s consolidated operating results.”

Last year SEGA Sammy reported a $242 million dollar loss, which afterward involved laying off over 400 employees and closing down 100 arcades. The blame for the current financial problems are mostly due to Sammy’s pachinko machines sales. The below quote is from Hajime Satomi involving the loss in money and layoffs:

“Due to Sega failing to respond to changing business environment, the operating performance of its core businesses, including the amusement facilities business and domestic consumer business, has not been performing well,” said Hajime Satomi, chairman and CEO.