Sega Reports Losses

Despite a 27.4 percent overall gain in company revenue (to a total of 339.1 billion yen), Sega has reported a cumulative operating loss for a third year in a row -- this year's financial loss totals US$398.1 million. The gains the company has made are due largely to the success of the Dreamcast overseas, but despite the respectable worldwide sales, Sega's shares are down 49.6 percent from where they were at the beginning of January.

Industry analysts predicted the loss, and feel that the intensifying competition from the Japanese launch of the PS2 in March is the primary cause. According to reports released by both companies for the past fiscal year, Sega shipped 1.1 million consoles in Japan, while Sony shipped 2.14 million PlayStation units and 1.41 million PlayStation 2 units. On a related note, Sega Ppresident Shoichiro Irimajiri officially confirmed that he is stepping down from his current position, taking responsibility for the company's financial losses. CSK Cchairman Isao Okawa will assume Irimajiri's duties.