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.