Cover Story
(February 2008)Cover Story
(February 2008)A company for the ages celebrates 52 years of contributions to the coin-op worls.
"I’ve always had a big picture idea and mentality.” These words from Green Bay Packers Head Coach Mike McCarthy apply to one of the industry’s long-term manufacturers, Sega Amusements USA Inc., which is celebrating 52 years in business.
While the company is Japanese in origin, it was started by Americans to provide games for U.S. servicemen. The company did not achieve over five decades of success without adapting to the constantly changing marketplace and considering the entertainment big picture.
Sega has left its mark on the coin machine industry, most notably with an impressive list of video games that stay in memory, such as Afterburner, Crazy Taxi, Daytona USA, Hang On, House of the Dead, Out Run, Virtua Fighter, and titles too numerous to mention. Sega games stay on industry game charts for extended periods, a testament to their longevity and popularity.
Today the company, which is based in Elk Grove Village, Ill., offers a product line that answers every entertainment need, from video games and conversion kits to redemption games and prize merchandise. For good measure add in mid-size attractions and simulators for larger family entertainment centers (FECs).
Sega is much more than a video game company. It has branched out into additional product categories with prize vendors like Sports Arena, cranes like UFO Catcher, and children’s games like Sonic Spinner and SpongeBob.
Regional
Sales Representatives, (l-r):
Vince Moreno,
Candice Lozano,
and Tom Keil
Play Meter recently caught up with members of the Sega team for an update on what is currently available and what is coming down the pike. Rick Rochetti, President, said, “A true manufacturer looks at what they bring to the marketplace, investing in designing and manufacturing. We’re going to continue to do that. We’re going to bring out new and exciting products for all parts of the market.”
Ron Malinowski, Director of Game Sales, agreed, “We’ve got products for the high end, the street, the arcade, the FEC.”
Full Sega lineup
Distributors had an opportunity to see the entire Sega lineup at a meeting in mid-January at the Marriott Hotel in Chicago, Ill. Two games were officially launched: Sega Race TV, a driver with licensed cars and special characters linkable up to four players, and Primeval Hunt, a prehistoric-themed gun game with`a 62-inch DLP monitor.
Also
shown at the distributor meeting: SpongeBob Ticket Boom, an interactive game
that invites players to stop the lights as they march on to win tickets. The
physicality of the game and sense of accomplishment are key elements. Also
notable: Shoot This Win This, coming from Europe and designed with Sega’s
European office. It’s a prize merchandiser/video shooting game combo.
Also available: the Mini Rider II from Simuline. The spring season finale will be Virtua Fighter 5. Sega is proud of the Lindberg hardware system it introduced two-and-a-half years ago, part of Sega’s commitment to the industry. At present seven games are on the system.
All
these products were shown at the Amusement Trades Exhibition International (ATEI)
in London, England, in late January and are scheduled for the Amusement Showcase
International (ASI) at the end of March.
Malinowski said, “We’re excited about the spring lineup. Sega has a tremendous presence in all aspects of the market.” Quality components such as LCD monitors and bigger screens add impact and add to the bottom line for operators.
Rochetti
commented, “This will be the 52nd year that Sega has been in the amusement
industry. It’s something we’re very proud of because we are obviously in a
condensed marketplace today and have a lot of competition for consumer dollars.
Sega has set itself apart with games that have motion and phenomenal graphics.
When we make a game, such as House of the Dead, which is still being produced,
we make it in multiple versions (deluxe, sit-down, standard), to give everyone
an opportunity to participate.”
The company pledges to continue supporting the AtomisWave system with new product. Sega’s popular Extreme Hunting 2 and other hunting games have been good for street locations. In addition, considerable effort is being devoted to redemption equipment and prize merchandise that has never been available to this market before. Thanks to Sega that is changing.
UFO Catcher takes off
You would have to go far to find a more enthusiastic group than the Prize Merchandise Division at Sega. Dave Cane is the Vice President of the Merchandise Division, Laurie Jezuit is the Sales and Marketing Manager (Disney Production Leader), and Katherine Braun is the Regional Sales Representative (Marvel Production Leader).
All
three travel to China periodically to visit the factory that produces the
merchandise and to check on their designs and the quality of the finished items.
They are genuinely excited about the success of the UFO Catcher crane and the newly licensed Winnie the Pooh, Marvel Comics, and Disney prize merchandise that attract players and drive them to collect characters in each series. Neither the crane nor the merchandise is ordinary.
Cranes can be described as “evergreen,” a standard that maintains its hold on players as long as desirable prizes are well displayed inside. Cane explained Sega’s approach to this division: “We have a unique perspective, the way we are going after the amusement business.”
“We’re selling to two different markets,” said Cane, “one for cranes at $1 per play and the second for cranes set at 50 cents per play. Europe and Japan don’t have varying price points like we do; that market is a $1 per play crane market.”
different Disney
Jezuit
focuses on the Disney line. “We wanted to bring a higher end retail quality
aspect to our plush. We started out by creating a different series for Disney,
for example, calling the plush “Flavor of the Month.” Mickey Mouse, Minnie
Mouse, Donald Duck, and Goofy appeared in different colors holding an accessory,
which appeals to collectors. We thought, ‘How do you get people to come back
to play your crane?’ The answer: ‘Give them prizes that are
unique.’Favorite characters in non-traditional colors stop players in their
tracks.”
The
first Disney product was the chocolate Mickey Mouse, which was an instant hit.
Jezuit explained that Sega has a message board on its Web site in which players
post items they want to buy, sell, or trade in order to collect a complete
series.
“Outstanding quality and uniqueness set us apart,” said Jezuit, adding, “They go hand in hand with collectibility. We have come up with a strategy to meet the market for cranes set at 50 cents and $1 to play. We never sacrifice quality or compromise design. Our Premium Jumbo (PJ) series features items 13 inches to 15 inches tall; the Regular Jumbo (RJ) series features items 10 inches to 12 inches tall.”
Winnie the Pooh
Jezuit
added, “The Winnie the Pooh line has never been seen in the amusement industry
before. And we have it for both PJ and RJ to satisfy both segments. The quality
of the characters is equally good in both lines but there are differences.
The PJ line revolves around the seasons; for example, the winter Winnie the Pooh line has Pooh and his friends wearing scarves and hats and holding snowballs and cups of hot chocolate (each with a collector tag). The RJ line comes out twice a year and features smaller, less expensive items (each with a standard tag).
There are four categories in the Disney line: 1) Winnie the Pooh, 2) Disney princesses featuring Cinderella, Belle, Snow White, and others, 3) Traditional Disney figures like Mickey Mouse and friends in different outfits, such as Mickey, Minnie, Donald, Goofy, and Pluto in pajamas; and 4) Classic film figures, including Pixar movies such as the new “Wall-E” movie coming this summer. Jezuit said, “Disney is pleased with our performance and granted us those licenses.”
Prize
Division, (l-r): David Cane, Vice President Merchandise Division;
Katherine Braun, Regional Sales Representative (Marvel production Leader);
Daria Szplczakowska, Graphic Designer;
Tina Bowling, Sales Coordinator;
Lara Marinier, Graphic Designer;
Laurie Jezuit, Sales and Marketing Manager (Disney Production Leader);
Mal Sato, Executive Assistant Administration;
and Ron Malinowski, Director of Game Sales.
Missing from photo: Jeff March, Webmaster.
marvelous Marvel
Katherine
Braun spoke about the Marvel Comics licensed items: “We will follow the same
plan as with the Disney line, producing items for both the PJ and RJ series.”
The Marvel line features the Super Hero Collection, including five main
characters: Captain America, Iron Man, The Hulk, Spider-Man, and Wolverine. New
movies featuring The Hulk and Iron Man are coming out this year. Plush
characters will be available in advance of the movie debuts.
Cane and Braun spent two weeks in China in December 2007 designing new plush. Cane commented, “The cool thing is, we just got in our samples and the market has not seen anything like it.”
The perfect display case for all these licensed and collectible items is the UFO Catcher crane that has the ability to show looping video clips of movies (classic and new) on its 21-inch monitor. Film trailers will draw even more attention to the quality, coordinating plush.
Cane said, “We’re taking the UFO Catcher to a new level. This is the Internet and text messaging society. We have a crane that is completely advanced and ready for this market, combined with creative licensed plush.”
Accounting,
(l-r):
Kristy Garcia, Toshisugu Kanari,
Margarita Parada,
Hiram Gonzalez, Ireta Gross,
Bettina DeTommaso,
and Rick Rochetti, President.
Rochetti commented, “We’ve been selling this product since September 2006 and we have more than 1,000 in the field. It has taken time for the UFO Catcher to come to the forefront. Interest has been building with the Disney and Marvel licenses, which bring a new aura to the market. The game is coming into its own, matching the merchandise to the machine.”
Cane noted that 75 percent of the people who collect Disney characters are female; the Marvel license is expected to appeal to the male market. The crane can be divided with Disney items on one side and Marvel items on the other.
UFO Catcher accommodates two players and features a twin-prong claw. Every set of plush comes with a poster for the back wall to show every item in the series with a note about what’s coming next.
set Apart from the pack
Malinowski said, “The UFO Catcher has evolved to the point where it is the luxury crane. We’ve set ourselves apart from the pack.” He explained that the machine is equally at home in a truck stop, FEC, arcade, or retail store. “It’s worked everywhere,” he noted, “and now we are finding new venues for placement because the machines are getting recognized.
“We also have a ticket version in certain markets like Canada to meet its rules and regulations. We try to adapt to various markets. For instance, the game has been approved for the Jersey Shore. People like the look of the UFO Catcher. All the accents are pink and the prizes are well displayed because of the lighting, monitor, and posters; it’s a nice combination.”
Cane mentioned the value of licensed plush. “Licenses are driving the business. Licensees have looked at the amusement market for a long time as low-end. That’s why we have positioned ourselves with a better crane, with a higher price per play, and with high quality plush. We’re going to see more licenses for higher end products. It’s going to influence operators to look differently and change their mindset. ”
Cane added that from customer feedback they have learned that when Sega plush is mixed with generic plush the revenue decreases. “We’ve heard that players play for the Sega plush, and players are asking where they can find a UFO Catcher,” said Cane.
Braun said, “Players come out to the arcades to have some fun and test their skills on crane games. They are going to locations to win specific items, not something generic; players are the driving force.”
She added, “We’re just scratching the surface. We will add more licenses down the road; it’s in the early stages.” Sega is making giant strides, considering that the company never had a crane or a piece of plush until 18 months ago. As usual, Sega is looking at the big picture and the entire scope of entertainment options.
Production,
(l-r): Dave Olbrisch,
Jesse Elias Jr., Tomohiro Saito,
Jay Kuansathapontavee, Don Campell,
Greg McKay, Angela Spinelle,
Jerry Korbecki, and Tad Nagamatsu;
(bottom): John Lobosco and Kaz Wakasugi.
Warehouse,(l-r):
Nick Hairell,
Jorge Monaco,
Jeremy Braden,
Sergio Blanco,
and Hiro Vargas.