Sega sells Visual Concepts to Take-Two
1/24/2005 10:19:00 PM
Well, this isn't a suprise. Sega has sold off the sports group, Visual Concepts, to Take-Two. Given that they also just locked up an agreement with the MLB and EA's purchase of the NFL license, Sega really had no use for the company. So VC is off to Take-Two to produce baseball games atleast and perhaps more.
SEGA Sells Visual Concepts Entertainment to Take-Two Interactive
SAN FRANCISCO--(BUSINESS WIRE)--Jan. 24, 2005--SEGA(R) of America today confirmed that SEGA Corporation has agreed to transfer all common stock and related assets of Visual Concepts Entertainment (Visual Concepts), the developer of the ESPN 2K5 series of sports games, to Take-Two Interactive Software, Inc. This transaction, effective immediately, supports SEGA's global strategy to focus on entertainment properties that boost revenue and appeal to gamers in disparate markets.
The deal follows a recent announcement from SEGA SAMMY HOLDINGS INC. (SEGA SAMMY), the parent company of SEGA Corporation, detailing improvement plans for development studio and distribution structure in overseas markets. SEGA and SEGA SAMMY are not changing their earnings forecast for the year ending March 31, 2005 which was announced on November 10, 2004.
"SEGA is proud that it has fostered such a strong and critically-acclaimed sports franchise," said Hisao Oguchi, president, SEGA Corporation. "We remain committed to the North American market, focusing on delivering innovative products that are equally as profitable as they are desirable to the western gamer."
"The ESPN Videogames line has not been a key profit driver in the North American market for SEGA," said Naoya Tsurumi, CEO of SEGA of America. "While SEGA recognizes the strength and depth of the ESPN Videogames franchise, we must remain committed to growing content that will help boost revenues across all western territories."
The sale of Visual Concepts, totaling $24 million, includes Kush Games and all intellectual property related to the ESPN Videogames product line.