Sega may stop GameCube sports development

After announcing slumping financial results, Sega of Japan announces that it won't continue to develop sports games for all consoles.

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Earlier today in Japan, Sega released its financial results for the last six months, which showed that its operating profit was down 20 percent from the previous year, with revenue down 3 percent. The company still posted a net profit of 1.01 billion yen (about $8 million). Sega said it has been harder than expected to become a cross-platform publisher, and that its initial plans to transition from its hardware-based model were overly optimistic.

A Dow Jones report said that Sega is focusing on improving profits in its "loss-making" sports game operations in the US, which Sega has had big hopes for. While Sega doesn't plan to back down from its fierce competition with Electronic Arts on other platforms, it will completely halt GameCube sports game development as of next year.

However, Sega's Gwen Marker has said that the Dow Jones report was speculative, although it included a direct quote from a press conference held in Japan. Sega of America issued a statement saying that the company "is currently examining its Sega Sports lineup to ensure it is bringing the right brands to the right platforms on time at the start of each season. Sega has not announced official changes to its current Sega Sports strategy."

Editor's note: This story was updated on 11/21/2002 to reflect Sega of America's statement.

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