Sega shifts production

Sega shifts production

TOKYO (AFP): Japan's Sega Enterprises Ltd. plans to transfer all of its production of video-game machines overseas as early as next year in an effort to lower production costs, a newspaper reported yesterday.

The Nihon Keizai Shimbun quoted company officials as saying that Sega would start importing 90 percent of games destined for the local market from sub-contractors in Taiwan, China, Thailand, Indonesia and Malaysia from August, cutting domestic production to 10 percent.

Japanese sub-contractors in Tokyo and two prefectures to the north and east of the capital currently account for 40 percent of Sega's home-video games destined for the Japanese market, the newspaper said.

Sega plans to keep a single Japanese production line open after August to produce its SegaSaturn model. But it will also be transferred overseas during the 12-month period starting in March next year, the newspaper said, adding that the company would also boost its procurement of overseas parts.

Company officials were unavailable to comment on the report.