Press release: 1995-11-13: Sega and CSK establish new U.S. software development company

This is an unaltered copy of a press release, for use as a primary source on Sega Retro. Please do not edit the contents below. Language: English Original source: The Free Library

REDWOOD CITY, Calif.--(BUSINESS WIRE)--Nov. 13, 1995--In a move to help ensure continued leadership in interactive entertainment in the U.S., Sega Enterprises and CSK Corporation today announced that they are establishing a new company to develop software for multimedia PCs and the Internet.

Called SEGA SOFT, Inc., the new company will also develop software for Sega's 32-bit Sega Saturn and other Sega videogame platforms.

Isao Okawa, chairman of both Sega Enterprises and CSK Corporation, both of which are key members of CSK Group, believes establishing SEGA SOFT is key to a successful global strategy for both companies.

"SEGA SOFT's efforts will pave the way for the future of the CSK Group," Okawa said. "Our goal is to expand the overall market for interactive experiences in the home so that everybody, regardless of age and gender, actively participates in interactive applications."

This move is consistent with Sega's global strategy to be the world's leading provider of interactive entertainment experiences in and out of the home. Sega is the world's leading high tech amusement arcade machine and amusement technology provider.

Sega and CSK share the vision that multimedia PCs will continue to grow in popularity for the home and that dedicated videogame consoles will maintain their dominance in family room entertainment.

"We believe that PCs and videogame machines will coexist in many U.S. households," Okawa added. "As an independent company SEGA SOFT will be focused on developing great software for all the volume platforms -- the multimedia PC in the home office, TV-based set-top box in the family room, and the Internet."

SEGA SOFT will concentrate on the full spectrum of interactive applications for the home, including interactive entertainment, edutainment and educational, and home business and reference software.

Sega of America, Sega enterprises' current consumer products development, marketing and distribution arm in the U.S., will market and sell SEGA SOFT's products in the U.S.

Nobuo Mii, partner of ACCEL partners, a venture capital firm specializing in technology and former corporate vice president of IBM, will join SEGA SOFT as chairman and CEO and maintain his role at ACCEL. Tom Kalinske, president and CEO, Sega of America (SOA), will be vice chairman and co-CEO of SEGA SOFT and retain his position at SOA.

"The interactive entertainment market will grow tremendously in the next decade as multimedia PCs are installed in more and more U.S. homes and the Internet becomes a mainstream mode of communication. Technology for the home will truly become a mass market category, not just a large niche," Mii said. "SEGA SOFT will lead the way in developing the best content possible for the home."

According to Kalinske, the separate companies will each focus on their respective strengths: SEGA SOFT on developing hit consumer software, and Sega of America on marketing and selling software, as well as videogame hardware.

"In the U.S. Sega is already recognized for creating great interactive games and great marketing," Kalinske said. "We've led the industry in creating more broadly appealing videogames through innovative advertising and marketing campaigns, and now we're going to apply our expertise to the growing market for PC and Internet entertainment software as well."

The new company expects to begin operations in December 1995 with a staff of approximately 250 and plans to double in size in the next several years. Some of Sega of America's experienced and successful product development teams will be consolidated into SEGA SOFT.

SEGA SOFT will be located in Redwood City, Calif.

Sega Enterprises Ltd., is a nearly $4 billion company recognized as the industry leader in interactive digital entertainment media and is the only company that offers interactive entertainment experiences both inside and outside the home.

The CSK Group was founded in 1968 by Okawa with the goal of creating an advanced information society. CSK Corporation, a key member of the group, is the largest independent software development company in Japan. With over 13,000 employees worldwide, CSK Group is a more than a $6 billion company.

CONTACT: Sega of America/SEGA SOFT, Redwood City

Lee McEnany, 415/802-3943
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