Sega Enterprises pulls its Saturn video console from the U.S. market

Article Abstract:

Sega Enterprises said it was withdrawing its Sega Genesis console from the US market because of heavy competition from Sony and Nintendo. The stunning Sega announcement entails a $450 million write-off to cover losses at its Sega of America subsidiary, investment securities, a software venture and inventory disposal. Sega Enterprises anticipates a net loss of 32.8 billion yen ($254 million), as well as a nearly 21% sales decline to $2.8 billion, for the year ending Mar 31, 1998. The company's drastic steps will better its position to introduce the next generation of video-console games which are in development with Microsoft, according to Sega Pres Shoichiro Irimajiri. Sega will continue to sell Saturn in Japan, as well as sell and develop software for the console, Irimajiri said. Saturn, introduced in 1995, has sold only two million consoles in the US and five million consoles in Japan.

Personal & Home Computers, Computer games, Sega Enterprises Ltd., Product discontinuation, Computer-based entertainment system, Computer entertainment systems

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Olivetti selling its PC unit to new investor; Piedmont deal aims to staunch losses

Article Abstract:

Olivetti announces plans to sell its PC company, valued between $159 million and $190 million, to the Piedmont International investment group. Olivetti decided to sell the division because it has failed to generate profits. Piedmont Pres Edward Gottesman believes changes in the unit's leadership and management strategies will return the company to prominence in the European PC market. Piedmont will continue to brand PCs with the Olivetti name and will lease manufacturing facilities from Olivetti. Analysts report the sale was expected as Olivetti's new management maneuvers to improve the parent company's financial position. Piedmont will identify the PC division's new management team in the near future. The status of the PC division's 1,600 employees was not detailed.

Analog & Hybrid Computers, Microcomputers, Mergers, acquisitions and divestments, Company investment, Investments, Olivetti S.p.A., Piedmont International

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Hewlett-Packard continues gains in home PC market

Article Abstract:

Strong sales of home PC's by Hewlett-Packard Co., doubling to 21.8% market share for 1998's first quarter compared to the same period last year, places HP in a good position with rivals Compaq Computer Corp. and Packard Bell NEC Inc. Industry analysts credit HP's rollout of the Pavillion line and positive customer feedback with its strong performance. The rate of repeat purchases by HP customers, according to ZD Market Intelligence, has grown from 58% in 1996 to 72% in 1997. But low profits continue to afflict the home PC market and HP executives are busy trimming costs.

Comment:

Company's market share in home PC's declines against rise for Hewlett-Packard

United States, Computers, Computers & Auxiliary Equip, Sales & consumption, Company Planning/Goals, Market share, Compaq Computer Corp., Hewlett-Packard Co., Packard Bell NEC Inc., Article

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