Sega

Revenue

¥208 billion (2018)

Employees

5,349 (2018)

Founded

1960



Overview:
Sega Games Co., Ltd. is a Japanese multinational video game developer and publisher headquartered in Tokyo, Japan. The company, previously known as both Sega Enterprises Ltd. and Sega Corporation, is a subsidiary of Sega Holdings Co., Ltd., which itself is part of Sega Sammy Holdings. Sega's North American division, Sega of America, is headquartered in Irvine, California, while its European division, Sega of Europe, is headquartered in London. The formation of Sega is traced back to the founding of Nihon Goraku Bussan in 1960 to take over the distribution activities of Service Games of Japan. After acquiring Rosen Enterprises in 1965, the company became known as Sega Enterprises, Ltd. Sega began developing coin-operated games in 1966 with Periscope, an arcade game.

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Industries:
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Information Technology
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Entertainment


Similar firms (based on pattern co-occurrence):
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2 shared patterns
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2 shared patterns
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2 shared patterns
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2 shared patterns
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2 shared patterns
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2 shared patterns
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2 shared patterns
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2 shared patterns
Business Model Patterns:

Add-on

How they do it: The Sega Dreamcast was launched in 1999 for the price of $199, and video games for the Dreamcast were sold for $50-$70. With any customer owning on average multiple games, this resulted in recurring add-on revenues for Sega.

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Lock-in

How they do it: With purchasing Sega Dreamcast, a video game console system, customers were locked into the particular ecosystem of controllers and video games. Competitors’ video games, for instance, were not compatible with the Sega system. Therefore, owners of a Sega-console were limited to titles released for its dedicated platform.

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Razor And Blade

How they do it: The Sega Dreamcast was launched in 1999 for the price of $199, and video games for the Dreamcast were sold for $50-$70. With any customer owning on average multiple games, this resulted in recurring add-on revenues for Sega. These recurring sales of video games were cross-financing the cost of the hardware.

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