/vr/ - Retro Games

>>10151642
With disu hit...we will destroy our enemies Nintendo and Sega of America in one fell swoop

Every month, or even every week in Sega’s case, we had meetings to examine the current situation. Each department would report on where it stood in relation to its goals. So, imagine if the sales goal for the end-of-year sales war is, say, 3 billion yen, and the profit goal is 300 million yen—but wait, the profit is in the red. That profit is a very important factor, so what does the business side do? They decide that it’s not necessary to have sales of 3 billion yen. Instead, 2 billion yen will do. In other words, they stop selling 1 billion yen’s worth of hardware. That way, if each unit sold is losing 5,000 yen, and we extend that to 20,000 units, that’s 100 million yen lost. By stopping the sales of 20,000 units, in a way that becomes 100 million yen in profit. So they slammed on the brakes in terms of unit distribution. Even though there were people that wanted to buy the console, Sega didn’t want to sell it, because the more they sold the more they went into the red.

From the perspective of the third parties, they saw that Sega was curbing the sales of the Saturn. The more consoles there were, the more games would be sold. But if console sales were being limited, then this created a serious problem. As they say, poverty dulls the wit. This led to a negative feedback loop.