Sega's share price a bad dream

Sega's share price a bad dream

With Sega hanging its future success on the new Dreamcast Internet-enabled gaming console, the picture doesn't look all that rosy as news of poor sales in Japan see investors deserting and its share price tumbling.

Sega has considerably fallen behind the Sony PlayStation and the Nintendo 64 in the gaming console popularity stakes, but it was confident the Internet gaming potential of Dreamcast would arrest the slide.

However, it now appears as though it's going to take more than recent announcements about price adjustments and massive investment in gaming networks to avert the slide.

It has been reported that Japanese credit rating company Japan Rating & Investment Information has cut its assessment of the gaming machine vendor's future prospects from an A- rating to a BBB-. That is not just a small slip-up in its rating but a hatchet job that drops it three rungs down the ladder.

As confidence wanes, investors have been deserting the dream. Sega's share price hit an all-time low of 1360 yen last week, down 15.5 per cent on the day and some 43 per cent since the beginning of the year.

The Dreamcast platform is to be launched in September in the US and Europe with Australia expected to follow soon after.

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