Sega Prize Europe has marked 2008 as its foundation year. It was the division's first trading year and despite a challenging economy, overall business has been positive. Jenni Shuttleworth talks to general manager Alan Smith about recent events
The last 12 months have been both a positive and important period for the Sega Prize Europe division. It has worked hard to create connections with the trade and gradually establish the credentials of Sega Prize as a brand. It has also had to put into place the long-term strategy of the company to demonstrate the potential that Sega’s global perspective has.
"A primary objective of our first year was to engage with customers, understand their requirements and address those needs in the future," said Smith. "Developments are concentrated towards delivering quality product through a quality service."
You might expect turbulent times from such a formative period for the division, but Smith begs to differ. He told InterGame: "With regards to any obstacles that the division may have come across in the past year, we have suffered the same as our fellow licensees with the product approval process taking an inordinate amount of time."
High points of SPE’s year include the acquisition of new licences and the development of products featuring Sega’s own IP.
Smith continued: "From our viewpoint, progress has been consistent during the year, the UFO Catcher continues to perform well as a SWP unit. The industry has seen a few successes and several failures in licensed merchandise but that’s par for the course. Obviously the most recent developments have surrounded the uncertainty regarding stakes and prizes for all gambling machines and the recent seizure of some units, which allegedly contravened the SWP classification."
Allegations and controversy aren’t subjects usually at the forefront of Sega’s mind, however. "We have always adhered to the BACTA code of conduct regarding prize values and welcome any attempt to strengthen the position. All of SPE’s merchandise conforms to the BACTA industry guidelines," said Smith.
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Since talking to InterGame of last year about its plans to introduce a prize programme, SPE has confirmed that the reaction to the programme’s launch has been supportive and encouraging, considering that the market was already well served by existing suppliers.
"Obviously clients had contracts or arrangements in place prior to our entry, but during the year our message has been better understood, helped by some new product developments," said Smith.
Talking to SPE’s general manager about competition, you get the feeling that a relaxed attitude and refusal to adhere to pressure play a huge part in Sega’s success. "Sega doesn’t specifically try to negate competitor pressure; we prefer to present our overall offer (licence, product, price, service), much of which is exclusively Sega’s, and allow customers to decide where they want to put their business based on merit."
Even when talking about the topical recession Smith manages to express a relaxed attitude and manages to find positivity amid the gloom. "I believe the impact of events has not yet reached us. No doubt there will be an effect as fallout from increased unemployment materialises. The strength of the euro and dollar against sterling puts pressure on domestic margins, but one benefit of being a global company is that currency fluctuations even out across territories."
Currently, Sega’s main focus is simply to continue delivering its promises to customers, consistently. It is also continuing to expand its product portfolio, having recently acquired the Hello Kitty licence for the amusement and leisure channels in Europe, Middle East, Africa, Russia and the Baltic states. This is the first non-retail licence issued by Sanrio and SPE will produce a range of products featuring the character.
Furthermore, SPE has launched its Sega branded Lifestyle range with technology based products Sega Vision and Sega SPE-X. In addition, SPE will produce merchandise designed specifically for the UFO Catcher, highlighting the range of player techniques it offers.
This year will also see the expansion of SPE’s position through increased range offers and the establishment of its international distributor network through the appointment of strategic partners promoting products under the Sega Prize Europe brand. Anything else? "More than we can reveal at this stage, I’m afraid," said Smith.
