(interview originally appeared in GamesBeat).
Q: How is Sega doing?
A: We’re having a great year. We’re the No. 6 publisher in the U.S. year to date. We doubled our market share from a year ago. There has always been quite a gap in the top 5 market share. We’re in the 5 percent range now. That’s been extremely positive for us. We have great hopes for the rest of the year with Sonic coming on the Nintendo DS and Samba de Amigo for the Wii, we’re improving with quality as well.
Q: What got you to the better market share?
A: A lot of it is sales from our catalog. One thing we suffered from for a while was that we didn’t have catalog that turned over. That gives games more legs. We’ve had a lot of releases in the first part of the year, such as “Condemned 2,” “Viking,” “Sega Superstars Tennis.” They didn’t sell huge numbers but significant enough to increase our share. “Iron Man” and “The Incredible Hulk” have also done good numbers, thanks to the movies.
Q: How do you look at things like iPhone games and Facebook games?
A: The social networking area is challenging for game companies. As soon as EA focuses on Facebook, the kids will move on. Look at how fast MySpace came and went in the U.S. That space needs to mature. We will play in it but won’t over-invest. We have the No. 1 application on the iPhone. We made a bet early on and have a great relationship with Apple. We use that to our advantage. Super Monkey Ball is No. 1 and it’s an extremely high profit-margin business. It’s likely it will do a million units.
Q: Will the iPhone become a real game platform alongside the consoles?
A: I think the iPhone and all of the ones that copy it will absolutely be a new platform. We’re investing in a forward-looking mobile games group. The point isn’t just to get Sonic on as many handsets as possible. Direct consumer delivery is where it’s going, as Apple has proven. We’re in a really good position and see it as a viable platform.
Q: You had some mixed results on games like the Golden Compass.
A: The Golden Compass was a major disappointment. It did well in the United Kingdom because the movie did well there. It was a real box office flop in North America. If we did the best game in the world, it still wouldn’t have sold well with a movie that flopped.
Q: Did you learn something from that?
A: Were we in the same position, would we take a gamble on another opportunity like that? Yes. The upside potential is significant. When we signed the Ironman deal, it wasn’t going to be a huge movie. It was going to be like Ghost Rider or the Silver Surfer that does maybe $120 million at the box office. It’s more than $300 million at the U.S box office now and will be one of the top three movies of the year for sure. That has powered game sales beyond our expectations. If you don’t gamble, you can’t win.
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