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Sega confirms Atlus acquisition for ¥14 billion, deal set for Nov 1

Wednesday, 18th September 2013 05:30 GMT By Brenna Hillier

Sega Sammy Holdings has acquired Index Corporation, the parent company of Shin Megami Tensei developer Atlus. It is now called Sega Dream Corporation, and Atlus has release comment on the matter,

UPDATE 2: Naoto Hiraoka, Atlus president and CEO has issued the following statement:

“I would like to take this opportunity to express my gratitude for your support of Atlus products. As announced Tuesday through various news channels, we are going to continue with our business operations as part of SEGA SAMMY HOLDINGS effective November 1, 2013.

“As you may already know, Index Corporation filed for Civil Rehabilitation Proceedings in Japan on June 27 and since then, has been searching for a solution which would allow us to continue our business of making great games.

“ATLUS has consistently received support and praise from our Faithful and our respected customers, and made great progress in recent years. So the recent incident must have surprised and worried all of you dearly. For that, I would like to express my deepest apologies.

“We have nurtured a great relationship with SEGA Inc. for a long time, especially concerning our consumer games business in Japan. I believe the collaboration between the two companies at this time will be mutually beneficial for the following reasons:

“Sega understands our drive to achieve quality and to expand awareness of the ATLUS brand. Our respective strengths in game development complement each other well.

“We are extremely happy to be able to continue with our business, and be able to report this good news to our fans and customers. Again, we would like to express our gratitude to everyone who has supported us.

“Currently, we at the Consumer Software Division in Japan are focusing on developing future titles, and are willing to take on new challenges to further achieve growth and success.”

UPDATE: Eurogamer reports that as of September 5, the part of Atlus parent company Index acquired by Sega is now called Sega Dream Corporation. The deal will be finalised on November 1. A Sega press release on the matter reads:

“The Company believes that transfer of Index’s operations to Sega will create synergies, on the grounds that the deal will enable the Company to (1) gain access to prominent IPs in the home video game software, through which the Company can expect to achieve steady flows of revenue; (2) expect further facilitation of revenue growth for the PC Online Game Business and Content Business for Smart Devices operated by Sega and Sega Networks Co., Ltd. by exploiting acquired prominent IPs and (3) maximize the value of acquired IPs by effectively deploying them in the Pachislot and Pachinko Machines segment, Amusement Machine Sales and Amusement Center Operations segments.”

ORIGINAL STORY: A report published in Nikkei puts the value of the deal at ¥14 billion – about $141 million. The deal will be finalised in November.

According to Nikkei, Sega and Index have already begun preparing to transfer management of the latter company.

The details of the Japanese-language report have been corroborated by translations from Gematsu, Tiny Cartridge, Nintendo Everything and Kotaku.

Sega was listed as a potential buyer for Index Corp last month.

Atlus is best known in the west for the Persona series, but the Shin Megami Tensei franchise of which it is a part is a much larger property. As a developer, it’s also responsible for the Etrian Odyssey series, and it published many and varied titles in Japan. Its US publishing arm was also responsible for a number of western-developed games in addition to localisations like Demon’s Souls.

There are multiple Persona games in the works and it’s not clear how the acquisition would affect Atlus’s operations, although the US arm said it expects to continue business as usual for now.

Index Corp has a broad range of media interests beyond Atlus but ran into accounting trouble on top of poor financials, eventually flirting with bankruptcy.

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16 Comments

  1. Dragon246

    The image is very fitting :P

    Btw, NOT the worst thing. You will probably enjoy all the exclusives still, since around 75% of their TGS lineup is Sony (Yakuza, Project Diva, Phantasy Star), and some exclusives for Ninty (Sonic, Project Mirai) too. So both parties can be reasonably happy.
    http://www.dualshockers.com/2013/09/12/sega-publishes-tokyo-game-show-line-up-made-mostly-of-playstation-games/

    On a sidenote, what happened to “two people told me that X will buy Atlus”? :D

    #1 1 year ago
  2. Bowser

    Considering the close ties recently between Sega and Nintendo, this could do a lot for the Wii U.

    #2 1 year ago
  3. Dragon246

    ^Unfortunately, no. Just look at their Wii U TGS lineup, they have just 2 Wii U games to show, least for ANY japanese console.
    And Yakuza failure on wiiu will only have a further effect imo.

    #3 1 year ago
  4. Legion

    Not seeing the cost analysis on this maneuver. But hey… you never know.

    #4 1 year ago
  5. Dragon246

    Update: Following Nikkei’s report on Sega’s Index acquisition, Sega has put out a press release stating “This is not something we have announced.”
    http://gematsu.com/2013/09/sega-sammy-to-acquire-atlus-parent-company-index

    #5 1 year ago
  6. CycloneFox

    After loosing Monolith Soft to Nintendo, I would have been extremely sad to loose Atlus to Nintendo, too.

    I like Sega alot for what they did for the PS3 and am looking foreward to future Atlus games. Also, I think Atlus games are selling best on Playstation-platforms.

    Btw.(offtopic) ) I still hope Monolith Soft gets independent someday. I want to see a Xeno-game for the Playstation again.

    #6 1 year ago
  7. Dragon246

    (1) gain access to prominent IPs in the home video game software, through which the Company can expect to achieve steady flows of revenue.
    Uh, ok.

    (2) expect further facilitation of revenue growth for the PC Online Game Business and Content Business for Smart Devices operated by Sega and Sega Networks Co., Ltd. by EXPLOITING ACQUIRED PROMINENT IPs.
    Oh.

    (3) maximize the value of acquired IPs by effectively deploying them in the Pachislot and Pachinko Machines segment, Amusement Machine Sales and Amusement Center Operations segments.
    The Sammy part of Sega Sammy. They are one of the biggest Pachinko Machine maker

    In other words, Atlus is well worth the money for Sega Sammy.

    #7 1 year ago
  8. Dragon246

    @Editors,
    You should change the title. Sega Sammy paid that amount for entire Index Corp. (the holding company Atlus was and is a part of), not only Atlus.

    #8 1 year ago
  9. dizzygear

    I guess i better start learning Japanese if i want to play another Atlus game in the future given that we are still waiting for PSO2, Valkyria Chronicles 3, Yakuza 5, etc and Sega just loves being a dick by refusing to let 3rd party’s to publish them in the west.

    @7 In other words we plan to milk the IP’s for all their worth.

    #9 1 year ago
  10. bakum4tsu

    And there goes the money that could be used for the “will never come out” Shenmue 3…..

    #10 1 year ago
  11. AngryConsumer

    its going the same way as monster hunter now. you can expect demons souls appear on the 2ds, where you also will be able to play as mario in demons souls as a bonus. and dark souls3 will be an wiiu exclusive. so if your fan of atlus you better get a nindento, or you will not be playing any atlus games anymore.

    #11 1 year ago
  12. dizzygear

    @11 What? Atlus USA only published Demons Souls in the US. The Demons Souls IP is owned by Sony and Dark Souls IP is owned by Namco Bandai.

    And i think you confused Sega with Nintendo. Besides Many recent Atlus titles have been for the 3DS.

    #12 1 year ago
  13. SplatteredHouse

    @7/9 Yes, that doesn’t necessarily speak all that well of Sega’s intentions for brand preservation.

    #13 1 year ago
  14. silkvg247

    Re-release high quality ports of most of the Atlus back catalogue on steam and Sega will have instant profit.

    Just look at XSeed’s successes.

    Would never happen of course.

    #14 1 year ago
  15. Lengendaryboss

    Well no more Atlus games now :(

    #15 1 year ago
  16. Stephany Nunneley

    Atlus CEO and president Naoto Hiraoka has issued a statement. Post has been updated with it.

    #16 1 year ago

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