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Square Enix to aquire Taito ------------------------posted on August 25, 2005

Square Enix Co., Tokyo, the manufacturer of home video game software such as gDragon Questh(Dragon Warrior) and gFinal Fantasyh, and Taito announced on August 22 that Square Enix will purchase Taito shares through a tender offer bid (TOB) between August 23 and September 21 at \181,000 per share. Square Enix prepares \45,160 million to purchase 67% of Taito shares.
Taito is the one of largest arcade operators, operating 270 arcades in Japan, and the one of major coin-op video game manufacturer such as gBattle Gear 4h. Taitofs revenue is \84,560 million and net income 1,718 million in the fiscal year ended March this year. Kyocera Corp., the major shareholder holding 36% of Taito shares, has seeked buyer to sale it for many years.
Enix Corp. founded in September 1975 and Square Co. founded in May 1986 merged to form a new company, Square Enix, in April 2003 to joint force as home videos market leader. The major shareholders are Yasuhiro Fukushima, Enix founder, 21.4%, Masafumi Miyamoto, Square founder, 12.2%, and Fukushima Kikaku, 8.8%. Square Enixfs revenue is \73,864 million and net income \14,932 million in the fiscal year ended March 2005.
Yoichi Wada, president of Square Enix, told a news conference it will continue to seek mergers and acquisitions if necessary to survive in an industry. He said the move is part of its strategy to survive in the undergoing dramatic changes.
After the acquisition, Taito will keep its name and operates as a separate entity under its new parent.


Namco, Bandai announce merger to gain edge --- posted on May 3, 2005

Namco Ltd., Tokyo, and the Japanese largest toy maker, Bandai Co., Tokyo, announced on May 2 that they had reached an agreement to integrate their businesses by setting up a joint holding company, Bandai Namco Holdings Inc.,(BNH), on Sept. 29.  Bandai and Namco will remain two separate companies under BNH, while they will be reorganized their business with a focus on character merchandising and video game development into toy/ content business, video games and arcade operations.

Accompany to the announcement, Masaya Nakamura, 79, founder and chairman of Namco, and his asset management company, Maru, sold 6.4% of Namcofs share to Bandai for the price of 10,535 million yen. Nakamura, however, remains its largest shareholder (13.1%), and Maru second (9.6%). The integration to the new holding company will be carried out through a share-for-share exchange scheme, with each Namco share to be exchanged for one BNH share, and each Bandai share for 1.5 BNH shares.

Already Namco has changed its top management on April 1, to that Kyushiro Takagi, 61, president, assumes vice chairman; Shigeichi Ishimura, 51, director for content business assumes president. Accompany the current announcement, Takeo Takasu, 59, president of Bandai will assume chairman, and Kazunori Ueno, 51, managing director will assume president after Bandaifs shareholder meeting in late June.

According to Bandai and Namco, BNHfs board member will consist of 10 directors. Kyushiro Takagi, Namcofs vice chairman, will assume BNHfs chairman, Takeo Takasu, Bandaifs chairman, assume BNHfs president. The other directors include Shigeichi Ishimura (Namcofs president), Kazunori Ueno (Bandaifs president), Masahiro Tachibana (Namcofs executive director), and Keiji Tanaka (Namcofs managing director).


Sega, Namco, Taito Announce Mid-Term Results --- posted on November 19, 2004

 On November 12, Sega Sammy Holdings Inc., Tokyo, announced Segafs mid-term consolidated revenue of \93,129 million, down 0.4% from the same period a year ago, and final net income of \1,025 million, down 82.7%. These are the mid-term results ended September 2004 for a total of its 36 subsidiaries. Before this, Sega has announced that it revised forecast of mid-term and fiscal year results upward on November 10.
 A breakdown of revenue shows that coin-op amusement games accounted for \28,549 million, down 5.2%, arcade operation \38,035 million, up 9.5%, and home videos \26,544 million, down 7.2%. The coin-op games division registered an operation profit of \5,709 million, down 6.7%, and arcade operation \4,380 million, down 11.7%. But home videos incurred an operating loss of \4,027 million (\1,841 million in the same period a year ago). Sega explained that its coin-op games sales were supported by steady domestic arcade market, but could not increase sales and profit, and Sega failed to carry a plan through its home video game business. Sega accounted for \4,921 million as extraordinary expense including a settlement package with Advent Telecommunications and redeeming its convertible bonds in the term.

 Namco Limited,Tokyo, reported its mid-term consolidated revenue of \81,980 million, down 2.0%, and final net income of \2,679 million, down 28.2%. Namco revised its forecast of mid-term results upward on November 9, and posted its results on November 18. These figures include the results of a total of 20 subsidiaries.
 A breakdown of revenue shows that coin-op games accounted for \16,541 million, up 27.0%, home videos \13,887 million, down 32.5%, arcade operation \41,075 million, up 3.3%, restaurants \2,553 million, up 21.1%, movie business \4,793 million, down 8.4%, and others \3,128 million.
 A breakdown of operating income shows that coin-op games accounted for \4,589 million, up 62.5%, arcade operation \3,962 million, down 7.4%, and restaurants \26 million, down 72.0%. However, home videos suffered an operatingloss of \1,324 million, movie business \157 million, and others \185 million. The unfavourable result of home videos in the term is due to lack of the new strong titles, Namco explains. Namco owns 596 arcades in Japan, 1,160 in US, 12 in Europe, and 27 in Southeast Asia.

 Taito Corp., Tokyo, posted mid-term non-consolidated results on October 27 that its revenue of \43,331 million, up 10.2%, and net income of \1,692 million, up 0.6%. Taito does not prepare consolidated results, since its subsidiaries are very small. A breakdown of revenue shows that coin-op games accounted for \10,520 million, up 83.1%, home videos \2,687 million, down 21.90%, arcade operation \21,181 million, down 4.8%, content service for cellular phone \4,598 million, up 6.1%, and karaoke sales/operation \3,129 million, up 12.9%. Taito owns 273 arcades in Japan as of September 30.


Sega, Sammy To Integrate Management Under Joint Holding Co.--- posted on May 19, 2004

 Sega Corp.,Tokyo, and Sammy Corp., Tokyo, announced on May 18 that the both companies will integrate their business and management as of October 1. According to them, both companies will set up the holding company "Sega Sammy Holdings", which will wholly-own Sega and Sammy as two subsidiaries on October 1, and the subsidiaries will be reorganize to the three or four companies, which handles such as pachinko / pachi-slot machine business, coin-op amusement / home video game business, and media contents / network business respectively, by March, 2007. The 0.28 share of the new holding company will be assigned for the Segafs one shares, and one shares for Sammy's one shares. The shares of both companies will be delisted at the end of September, but the shares of the holding company will be listed on the Tokyo Stock Exchange. The corporate bond issued by Sega and Sammy will be redeem before maturity by the end of September.
 At the holding company, Hajime Satomi, present Segafs chairman and Sammyfs president, will assume its chairman and president; Hisao Oguchi, present Segafs president, its vice-chairman; Keiji Nakagawa, present Sammyfs executive director, its executive director; Kiyofumi Sakino, present Sammyfs managing director, its managing director; Kenkichi Yoshida, present Sammyfs managing director, its director; Hideki Okamura, present Segafs director for consumer products, its director; and Yasuo Tazoe, present Segafs director for arcades operation, its director. Due to this management restructure, the large officer change will be carried out by the both-companies general meeting of shareholders late in June. According to its plan, Hideki Sato, vice-chairman, and three directors (Tetsu Kayama, Akira Nagai and Hisashi Suzuki) will step down from the board of Sega on June 29.

Segafs Fiscal Results

Sega reported \12,617 million in consolidated revenue, down 3.0% from the preceding year, and \8,760 million in final net income, up 186.8%, for the fiscal year ended March 2004. Sega accounted \2,617 million for extraordinary profit and \4,893 million for extraordinary loss in the results announced on May 18. A breakdown of revenue shows that coin-op games sales accounted for \60,365 million, down 1.6%, home videos \61,032 million, down 8.3%, and arcade operation \69,860 million, up 0.8%. A breakdown of operating income was as follows: coin-op games \12,019 million, up 10.3%, and arcade operation \6,135 million, down 23.8%. However, home videos still incurred an operating loss of \2,824 million (\8,570 million yen in the previous year). As Sega opened 16 arcades, and closed 40 arcades in the term, it now owns 473 arcades.
 Sega will merge its seven R&D subsidiaries, such as Sega AM2 and Sonic Team, on July 1. Sega forecast \204 billion in consolidated revenue and \8 billion in final net income for the fiscal year to end March 2005.

Sammy becomes Sega's Major Shareholder
--- posted on December 12, 2003

@CSK Corp.,Tokyo, has sold its 39,148,600 shares in Sega to Sammy Corp., Tokyo, at the price of about \45.3 billion on December 8, CSK and Sammy announced on the same day. Since all shares in Sega Corp., Tokyo, are 174,945,690 shares, CSK has possessed 22.4% of Sega as a major shareholder. Sammy, which has held 10,000 shares, now possess 39,248,600 shares in Sega, and has more of a voice to control Sega's operation. Masahiro Aozono, chairman of CSK has discussed with Hajime Satomi, president of Sammy, on transaction of shares in Sega since October this year. CSK will account for about \17 billion of extraordinary profit in its consolidated results to end March 2004.
@Sammy is a major pachinko type slot machine (pach-slot) manufacture, and intends to strengthen its amusement coin-op games business such as its video game system "Atomiswave". For the reason, Sammy had approached to CSK to merge with Sega in the beginning of this year, and reached an agreement with Sega in February. But, the scheme comes crashing down in May. However, Sammy does not forget its plan to utilize Sega's R&D power for Sammy's amusement video games.
@Sega announced on December 11 that its board of directors has appointed Hajime Satomi as special adviser of Sega, and that Satomi and Yoshi Suzuki will be appointed as director of Sega at the extraordinary meeting of shareholder to be held on February 17, 2004. The directors of Sega from CSK will quit at the meeting in February. Satomi, 61, is the founder of Sammy. Yoshi Suzuki, 50, had entered Taito, become president of Taito America (June 1991 - November 1992), moved to Sammy as president of Sammy USA, and became director of Sammy since June 1994 and executive director for amusement business since June 2002.

Sega, Namco, Taito Announce Mid-Term Results --- posted on November 20, 2003

On November 12, Sega Corp., Tokyo, reported its mid-term consolidated revenue of \93,474 million, down 1.8% from the same period a year ago, and final net income of \5,932 million, up 484.6%. These are the mid-term results ended September 2002 for a total of its 44 subsidiaries. Sega has announced that it revised forecast of mid-term and fiscal year results on October 16.
A breakdown of revenue shows that coin-op amusement games accounted for \30,109 million, down 0.5%, arcade operation \34,749 million, down 0.5%, and home videos \28,616 million, down 4.6%. The coin-op games division registered an operation profit of \6,117 million, down 6.1%, and arcade operation \3,920 million, down 14.2%. But home videos incurred an operating loss of \1,841 million (\5,148 million in the same period a year ago). Sega explains that the coin-op games sales in Japan were satisfactory by shipment of multi-player game such as gKey of Avelonh, but not so well in the overseas market, and it has improved its home video game results.

Namco Limited, Tokyo, reported mid-term consolidated revenue of \83,636 million, up 13.9%, and final net income of \3,730 million, up 188.8%. Namco revised its forecast of mid-term results upward on October 8, and posted results on November 19. These figures include the results of a total of 23 subsidiaries.
A breakdown of revenue shows that coin-op games accounted for \13,025 million, up 54.0%, home videos \20,579 million, up 29.4%, arcade operation \39,754 million, up 3.1%, restaurants \2,109 million, up 3.0%, movie business \5,234 million, up 0.9%, and others \2,932 million.
A breakdown of operating income shows that coin-op games accounted for \2,824 million, up 212.4%, home videos \4,132 million, up 105.7%, arcade operation \4,280 million, up 37.7%, restaurants \93 million, up 520.0%, and movie \119 million. However, others suffered an operating loss of \448 million.

Taito Corp., Tokyo, posted mid-term non-consolidated revenue of \39,304 million, up 15.5%, and net income of \1,681 million, up 6.6%. Taito does not prepare consolidated results, since its two subsidiaries are very small.
A breakdown of revenue shows that coin-op games accounted for \5,745 million, up 83.0%, home videos \3,438 million, up 21.0%, arcade operation \22,245 million, up 9.1%, content service for cellular phone \4,333 million, up 2.0%, and so on.
Taito revised its forecast of fiscal year results on the same day (October 27). It forecast \81,000 million in revenue and \3,300 million in net income for the fiscal year to end March 2004, although it previously forecast \77,000 million in revenue and \3,100 million in net income on April 24.


Sega Revises Forecast Upward ---posted on October 17, 2003

Sega Corp.,Tokyo, revised its forecast of mid-term and fiscal year results on October 16. The post-revision forecast of consolidated revenue for the mid-term ending September is \94,200 million, and net income \5,700 million. Also the post-revision forecast of consolidated revenue for the fiscal year to end March 2004 is \195,700 million, and final net income \8,000 million. Sega previously forecast \88,000 million in revenue and \200 million in net income for the mid-term, and \193,000 million in revenue and \7,500 million in final net income for the fiscal year.
Sega explains the upbeat forecast by pointing to the satisfactory results of coin-op games sales such as the multi-player video game gThe Key of Avelonh shipped in July for domestic market, and good results of home videos sales in both domestic and overseas and arcade operation in Japan. Sega now forecast that its net income for mid-term will increase 462%, and its final net income for fiscal year will increase 162% from same period of preceding year.

Namco Revises Forecast Upward ---posted on October 9, 2003

Namco Limited, Tokyo, revised its forecast of mid-term and fiscal year results on October 8. The post-revision forecast of consolidated revenue for the mid-term ending September is \83,700 million, and net income \3,200 million. Also the post-revision forecast of consolidated revenue for the fiscal year to end March 2004 is \174,600 million, and final net income \6,600 million. Namco previously forecast \74,500 million in revenue and \1,500 million in net income for the mid-term, and \164,800 million in revenue and \5,800 million in final net income for the fiscal year.
Namco explains the upbeat forecast by pointing to the favorable results of home video game gSoul Calibur IIh for PS2 shipped in August for US market and the satisfactory results of arcade operation in Japan and coin-op game sales. Namco will appropriate \1,000 million ( \100,000 million was incorrect --- Correction on Oct. 17 )for extraordinary expense for its US subsidiaryfs investment in mid-term, but its net income for mid-term will increase 60% from same period of last year.

Sega Appoints Hisao Oguchi President ---posted on May 23, 2003

 Sega Corp., Tokyo, announced changes in its top management on May 19. Hisao Oguchi, managing director of video games development, will be promoted to president as of June 27. Hideki Sato, president, will assume as chairman, and Kichiji Fukushima, chairman, will step down to an adviser, in order to reduce confusion over the M&A procedure cancelled recently. Also, Tetsu Kayama, CEO, and Akira Nagai, COO, will lose representative role. As the result, only Oguchi will play a Segafs representative role.
 Hisao Oguchi, 43, graduated Chuoh University and entered Sega in 1960, became director of the third R&D division in 1993, and has served as executive director of video games development since June 2002.

Sega, Namco, Taito Recover Fiscal Results ---posted on May 23, 2003

 Sega Corp., Tokyo, reported \197,223 million in consolidated revenue, down 4.4% from the preceding year, and \3,054 million in final net income (\17,829 million in net loss in the preceding year) for the fiscal year ended on March 31, 2003. A breakdown of revenue shows that coin-op games sales accounted for \61,343 million, up 16.5%, home videos \66,549 million, down 21.8%, and arcade operation \69,330 million, up 1.2%. The operating income of coin-op games is \10,892 million, up 456.8%, and arcade operation \8,049 million, down 0.9%, but home videos incurred an operating loss of \8,570 million (operating income of \5,578 million in the previous year).
 Sega currently forecast \193,000 million in revenue and \7,500 million in net income for the fiscal year to end March 2004.

 Namco Limited, Tokyo, posted \154,777 million in consolidated revenue, up 1.7% over the preceding year, and \4,115 million in final net income, up 102.2%, in final net income for the fiscal year ended March 2003. A breakdown of revenue shows that coin-op games sales accounted for \16,254 million, down 11.1%, home videos \42,475 million, up 19.6%, arcade operation \75,900 million, down 1.7%, restaurants \3,826 million, down 9.5%, movie business \10,131 million, up 2.3%, and others \6,188 million. A breakdown of operating income was as follow: coin-op games \1,180 million, down 21.0%, home videos \9,196 million, 18.7%, arcade operation \4,773 million, up a huge 128.8%, and restaurants \34 million. But movie business incurred an operating loss of \411 million, and others a loss of 1,022 million.
 Namco forecast \164,800 million in revenue and \5,800 million in net income for the fiscal year to end March 2004.

 Taito Corp., Tokyo, posted \73,236 million in revenue, up 3.8% over the preceding year, and \4,680 million in net income, up 63.6%, for the fiscal year ended March 2003. Taito does not prepare consolidated results, since its two subsidiaries are very small. A breakdown of revenue shows that coin-op games sales accounted for \9,737 million, up 10.5%, home videos \5,728 million, down 6.4%, coin-op karaoke \736 million, up 21.9%, arcade operation \42,336 million, up 7.4%, network service \8,852 million, down 4.7%, and so on.
 Taito forecast \77,000 million in revenue and \3,100 million in net income for the fiscal year to end March 2004.

 Konami Corp., Tokyo, posted \253,657 million in consolidated revenue, up 12.4% over the preceding year, \21,870 million in operating loss, and \28,519 million in final net loss. Konami vanished \47,599 of operating right value for sport clubs to act on the US Accounting Standard.
A breakdown ofrevenue shows that home videos accounted for \87,476 million, down 2.9%, fitness business \78,525 million, up 19.6%, card games such as gYugioh \45,948 million, up 79.5%, coin-op games \34,305 million, down 9.5%, gaming machine for casinos \8,215 million, up 168.2%. A breakdown of operating income was as follows: home videos \13,987 million, down 23.8%, card games \16,629 million, up 130.9%, coin-op games \7,270 million, down 15.5%. However, fitness business incurred an operating loss of \49,412 million, and gaming machine a loss of \169 million.
@Konami forecast \255,500 million in revenue and \14,500 million in net income for the fiscal year to end March 2004.

Sega, Sammy Cancel Merger Plan, Namco Withdraws Bid ---posted on May 9, 2003

 Sega Corp.fs bid for survival went back to square one on May 8, by pulling the plug on a proposed merger with Sammy Corp. Only to have another suitor, Namco Ltd., withdraw its overture later the same day. Hideki Sato, Segafs president, told that Sega canceled its planned business integration with Sammy, which had agreed on February 12 to accomplish on October l.
 Hajime Satomi, Sammyfs president, later acknowledged that Sammy had failed to bridge the differences with Sega over the name of the merged company and other critical issue.

 Meanwhile, Namco which had proposed to merge with Sega since mid-April, announced the same day evening that it had abandoned its plan to merge, because Namco had received Segafs response paper in which Sega said there is not the situation to answer concretely on the plan.
Sega had said it would decide on a partner by early this month. However, disagreements inside the company and with its major shareholder, CSK Corp., lead to the Sammy deal falling through.

 The prevailing opinion at a meeting of Segafs executives was that the talk with Sammy should be scrapped and started again from scratch. Many executive even suggested Sega continue to operate on its own, sources said.
On the same day, Sega announced its revision of forecast of fiscal year. The post-revision forecast of consolidated revenue for the fiscal year ending March 31, 2003, is 197,000 million yen and net income 3,000 million yen. Sega previously forecast 195,000 million yen in revenue and 500 million yen in net income, since February 13, 2003

CSK Arranges Sega, Sammy's M&A Plan---posted on February 19, 2003

@An additional information was brought from the Nikkei Industrial News. According to the report dated on February 17, Masahiro Aozono, president of CSK, called Sega's directors into CSK's head office on Shinjuku, Tokyo, on February 12, and informed them that CSK has arranged the M&A of Sega and Sammy. No one except Hideki Sato did not know the fact that the M&A arrangement had been proceeded till then. No one could say "No", before its announcement of forecast revision as of February 13.

@CSK has been the major and top (22%, 39,148,688 share) shareholder of Sega, and the recorded cost of the Sega's share is \2,400 per share for CSK. If the share price will be under \1,200 (i.e. half of book value), CSK will have to reduce the book value and announce the extraordinary loss estimated about \50,000 million. It is said that it will threaten CSK's main frame of management.

@Late Isao Okawa, former owner of CSK, has invested to Sammy in 1990, since Sammy suffered heavy loss then. After the prehistory, SS Planning - the Okawa's asset management company, has been the major and second (18.9%, 10,106,000 share) shareholder of Sammy. The successors of Okawa has chosen the arrangement of current M&A and propose the M&A to Hajime Satomi, president of Sammy, about 10 days before announcement.

@The Sega's share price is about \750 as of February 19, down 17% from about \900 before the M&A plan announcement. It is said that the reason of share price fall may be a closure of the necessary information of CSK, Sega and Sammy.


Sega, Sammy Announce to Merge on Oct. 1--- posted on February 14, 2003

On February 13, Sega Corp., Tokyo, and Sammy Corp., Tokyo, announced that they will merge on October 1, a move seen aimed at resolving Sega's financial troubles resulted the cut-throat home videos business in U.S. According to the announcement, Hajime Satomi, president of Sammy, will assume the president of the new company, while the designation of Hideki Sato, president of Sega, is yet to be decided. The other condition including the convertible ratio of each share and the name of the new company will be examined by the hereafter existing merge committee of both companies.

At the same time, Sega announce its result for the nine-months term ended December 31, 2002, and its revision of forecast of fiscal year ending March 31, 2003. Sega posted \150,697million in consolidated revenue, \9,396 million in operating income and \3,981 million in net income for the fiscal nine-month term ( April-December, 2002 ). It is the first time that Sega posted the nine-months term results. Its coin-op games sales and arcade operations in the term are very well as planed. However, Sega failed to accomplish home video game sales in U.S. Therefore, Sega revised its forecast of the fiscal year results.

The post-revision forecast of consolidated revenue for the fiscal year ending March 31, 2003, is \195,000 million and net income \500 million. Sega previously forecast \200,000 million in revenue and \5,000 million in net income, since November 20, 2002. Though the large downward revision is not a surprise, Sega seems to be afraid of the large drop in share prices. However, the true reasons to merge with Sammy are unknown.
According to the joint announcement of Sega and Sammy, the information except the schedule of merge, top management, and their expectations to the synergy effect from the merge, are not shown.



Sega, Namco, Taito Announce Mid-Term Resuls --- posted on November 21, 2002

On November 20, Sega Corp., Tokyo, reported mid-term consolidated revenue of \95,144 million, down 2.7% from the same period a year ago, and final net income of \1,014 million ( vs. a net loss of \20,871 million in the same period a year ago ). These are the mid-term results ended September 2002 for a total of its 46 subsidiaries. Sega has announced that it revised forecast of mid-term and fiscal year results on November 7.

A breakdown of revenue shows that coin-op amusement games accounted for \30,249 million, up 17.1%, arcade operation \34,904 million, down 0.2%, and home videos \29,990 million, down 19.0%. The coin-op games division registered an operation profit of \6,512 million, up 220.6%, and arcade operation \4,564 million, down 18.6%. However, home videos incurred an operating loss of \5,148 million ( \870 million in the same period a year ago ). Sega explains that it previously planed to ship 6.2 million unit of home video game software in the mid-term, but sold only 4.57 million unit.

Sega now forecast \200,000 million in consolidated revenue and \5,000 million in final net income for the fiscal year to end March 2003, although it previously forecast \210,000 million in revenue and \18,000 million in net income on May 17.

Namco Limited, Tokyo, reported mid-term consolidated revenue of \73,406 million, up6.3%, and final net income of \1,291 million, up 4.6%. Namco revised its forecast of mid-term results upward on October 8, and posted results on November 20. These figures include the results of a total of 24 subsidiaries.
A breakdown of revenue shows that coin-op games accounted for \8,460 million, down 6.9%, home videos \15,901 million, up 47.0 million, arcade operation \38,564 million, up 0.5%, restaurants \2,048 million, down 0.3%, movie business \5,185 million, up 9.4%, and others \3,245 million.
A breakdown of operating income shows that coin-op games accounted for \904 million, down 24.3%, home videos \2,009 million, up 40.1%, arcade operation \3,109 million, up 42.5%, restaurants \15 million, down 58.3%. Other business suffered an operating loss of \670 million.

Taito Corp., Tokyo, posted mid-term non-consolidated revenue of \34,042 million, down 3.3%, and net income of \1,577 million, up12.5%. Taito does not prepare consolidated results, since its two subsidiaries are very small.
A breakdown of revenue shows that coin-op games accounted for \3,140 million, down 36.5%, home videos \2,841 million, up 25.7%, arcade operation \20,392 million, up 3.1%, content service for cellular phone \4,326 million, down 7.3%, and so on.
Taito revised its forecast of fiscal year results on the same day ( October 30). Taito forecast \72,000 million in revenue and \3,200 million in net income for the fiscal year to end March 2003, although it previously forecast \75,000 million in revenue and \3,600 million in net income on April 25.


New System Boards, Net Work Videos At JAMMA Show --- posted on September 28, 2002

At the JAMMA Show 2002 ( Amusement Machine Show, September 19-21, Tokyo Big Sight ), Sega Corp., Tokyo, unveiled its new coin-op CG system board " Chihiro " based on Microsoft home video system " Xbox ", and Sammy Corp., Tokyo, unveiled its coin-op CG system board "Atomiswave " using Sega home video " DreamCast " graphic ship, which Sammy purchased a year ago from Sega. Namco presented its prototype of "Dragon Chronicle " using memory card. Taito Corp., Tokyo, introduced the racing video "Battle Gear 3" using memory card in the shape of car key.

Sega will ship the first video game using " Chihiro ", " The House of the Dead 3 ", in December 2002. Its home video game software will be shipped at the same time. Sega also exhibited the racing video " Initial D Arcade Battle 2" based on Naomi, and the football video "Virtua Striker 2002" base on " Triforce "( GameCube ).

Sammy has developed "Atomiswave " and its subsidiary Dimps Corp., Osaka, develops its first game software " Premier Eleven ", and will ship in December 2002. Other titles for "Atomiswave " shown are the racing " Maximum Speed ", the gun game " Sport Shooting USA " and the " Dolphin Blue".

Capcom Co., Ltd., Osaka, unveiled its fighting video " Capcom Fighting All Stars " base on Namco "System 246 "( PlayStation 2). Playmore introduced its fighting video " The King of Fighters 2002 "( KOF '02 ) for " NeoGeo " System at the Able Corp. booth. The "KOF '02 " has been developed by BrezzaSoft and Eolith, and will be shipped by Sun Amusement and Able for domestic market, and will be exported by BrezzaSoft.

Konami Crop., Tokyo, unveiled the 4 player gun game " World Combat ". Konami and Sega exhibited each mahjong video game system for multi-players respectively, and Aruze Corp., Tokyo, presented its PC board type mahjong video.


Tecmo Wins Copyright Lawsuit Against West Side@@--- posted on September 9, 2002

The Tokyo District Court Judge, Yoshiyuki Mori, founded that West Side Co., Ltd., Amagasaki, Hyogo, infringed the copyright of Tecmo Limited, Tokyo, and ordered West Side to pay damage of \2 million, on August 30. West Side appealed this case to the Tokyo High Court on September 6.

Tecmo has shipped its software "Dead or Alive 2"( DOA 2 ) for SCE's PlayStation 2, and the software contains the naked figure data of the "DOA 2"'s female character, Kasumi. West Side shipped its utility program "CD for fun", with which player enjoy to play naked character figure on the ordinary "DOA 2" software. Tecmo filed a lawsuit on November 2001 alleging that West Side altered the character's figure of the "DOA 2" without permission and infringed Tecmo's copyright.

Although West Side did not alter the Tecmo's software in any way, West Side lost the case in the District Court. This case is resemble to the Konami vs. Spec Computer case, in which the Supreme Court ruled on February 2001 that Spec Computer which import and sell the memory card enabled to play through to the end on the Konami's "Tokimeki Memorial" for PlayStation infringed Konami's copyright.


Pro Baseball Players File Lawsuit Against Konami, JBO --- posted on August 27, 2002

The Japan Pro Baseball Players Association (PBPA) filed a lawsuit in the Tokyo District Court against Konami Corp., Tokyo, and the Japanese Baseball Organization (JBO) on August 26, alleging that Konami has used the players' real names and portraits on Konami's home video games without the PBPA's permission, and the JBO licensed Konami exclusively to use them and sublicense right to other game manufacturers without the PBPA's permission.

The PBPA seeks an injunction that forbid Konami to ship its video game containing Japanese Pro Baseball players' names and portraits, and the Court's decision confirming that the JBO has no right to license any Pro Baseball player's right.

According to the PBPA, although the JBO has no right to license, it licensed Konami to use the players names and portraits for video games in 1999 and to sublicense without PBPA's permission. As the results, Konami has never licensed to other video game manufactures, and there has been very few pro baseball videos except Konami's game software in the market since 2000.

Konami announced in its response that it is regrettable for the PBPA to take legal action, but Konami hopes to resolve this dispute rapidly.


Konami, Andamiro Settle on Music Video Dispute--- posted on August 20, 2002

Konami Corp., Tokyo, and Andamiro Co., Ltd., Korea, announced on August 19 that the two parties have reached an agreement to settle out of court both in Korea and the U.S. According to the announcement, Konami has received some mount of money from Andamiro, however the amount of money is not shown due to the terms of settlement. Andamiro withdrew its appeal to the Seoul High Court and its file to the U.S. District Court.

Konami said that Andamiro had proposed to resolve a series of legal proceedings with Konami since February this year, and have eventually reached an agreement. Andamiro's comment has not obtained.

Konami filed a lawsuit in the Seoul District Court in March 2000, alleging that Andamiro infringed the Konami's registered design right of the "Dance Dance Revolution" by the Andamiro's "Pump It Up". In the case, the court's Judge ruled favor to Konami in June 2001, and Andamiro appealed immediately. By the way, Andamiro announced in September 2001 that the Patent Court decided Andamiro did not infringe Konami's design right.

Andamiro USA Corp., CA, U.S.A., a Andamiro's subsidiary, filed a patent lawsuit against Konami to the U.S. District Court alleging that Konami infringed Andamiro's patent in "Pump" by Konami's "DDR" in August 2000. In the case the trial was set to begin from September 2002.


"Game Machine English News" (c) 2002-5 Amusement Press Inc., Japan

Amusement Press Inc., Lax Nibankan, 1-22, Koshienguchi-Kitamachi, Nishinomiya, Hyogo, 663-8112
Editor: Masumi Akagi, Mail: editor@ampress.co.jp       Fax:81-798-63-5324