The de-industrialisation of Japan proceeds apace and stands as an awful warning to countries with over-strong currencies and high employment costs such as Germany. Now Sega Enterprises Ltd has announced that it will shift all of its production of video game machines to overseas factories some time in calendar 1996. Sega already produces all games machines for the overseas market and 59% of those for the Japanese market in Taiwan, China, Thailand, Indonesia and Malaysia. It has also responded to Sony Corp’s price cut by reducing the price of the 32-bit Saturn 22% to the equivalent of $409 and moving to a cheaper-to-build version.