Sega shares hit by forecasts of further losses

30 Oct 2000 10:33

Is the PS2 about to blow the Dreamcast away?

Shares in Sega plunged nearly ten percent in Tokyo Monday after the maker of the Dreamcast console announced Friday that it expected to make a loss for the fourth consecutive year.

Rather than a previous estimated profit of 1.5bn yen (about £10m), Sega now expects to lose 22.1bn yen (roughly £145m) in the year to March. Sega's shares have fallen 60 per cent since the start of 2000.

The company recently moved into online gaming with SegaNet, and cut the cost of a Dreamcast.

Friday's announcement also included plans to supply its existing games for other console platforms. Analysts believe this move may be a mistake, as letting gamers play Sega's software on another console such as Sony's PlayStation 2 will hit Dreamcast sales.

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