Address: 266-270 Gunnersbury Avenue, London W4
Date of birth: Sega Enterprises was founded in 1950
Background: Sega has recently been fighting for its survival. The
trouble started in 1995, when Sony launched the PlayStation console.
Boasting superior technology and better games, PlayStation blew Sega’s
Saturn away. Sega’s market share collapsed to less than 4 per cent.
With Sega reporting losses of more than dollars 300 million in 1997 and
1998, it looked like it might be game over. But last October, Sega
fought back with the launch of Dreamcast. The console was make or break
for the Japanese giant and it pulled out all the stops, offering 128-bit
power and ground-breaking online gaming capability. It was backed by a
pounds 120 million launch in the US and Europe and an improved range of
So far, Dreamcast is holding its own, with 750,000 units sold in Europe
and two million in the US. But the future does not look good. In the
week that Sony launched its PlayStation2 in Japan, Sega warned its 1999
losses would top dollars 400 million. Disappointing sales in its home
market are blamed for the results and the enthusiastic reception for
PlayStation2 can only make matters worse. What’s more, Nintendo is due
to launch a successor to N64, and Microsoft is entering the fray with
its X-Box console this summer.
Sega is now trying to shore up its position by launching an online
gaming network, Sega.com, and a raft of internet-related features.
Whether this will be enough to defend itself is anyone’s guess.
Key brands and brand managers
Alison Turner is marketing director in the UK and Giles Thomas is
marketing director for Europe.
Contact number for Sega Europe 020-8995 3399
Media agency Carat handles Sega’s account, with client director Alex
Altman overseeing the business.
Contact number for Carat 020-7447 7500
Annual media spend: Between April 1999 and March 2000, Sega Europe spent
pounds 4 million in the UK on press, cinema, radio and TV (AC Nielsen
The total European marketing budget for Dreamcast is pounds 60
Media used Before it lost the account to Bartle Bogle Hegarty, WCRS
created the launch cinema and TV campaign for Dreamcast, featuring music
from Robbie Williams. However this has now finished, with current
activity focusing on posters.
New creative is expected this summer, including an ambient media
Sega also sponsors Arsenal in a three-year shirt deal worth pounds 10