Sections

Sega cuts profit forecast by 36 per cent

Slow sales in Pachislot and Amusements prompts fiscal year revision

Sega has slashed its fiscal year profit forecast by more than a third, mainly due to the performance of its Pachinko and Amusement Machine businesses.

For the fiscal year ending March 31, 2014, Sega has cut its revenue forecast by 23 per cent, from 485 billion to 377 billion ($3.7 billion). Net income will be even more seriously affected, dropping 36 per cent from 47 billion to 30 billion ($294 million).

However, Sega's operating income will suffer the greatest loss of all: a 49 per cent drop from 73 billion to 37 billion ($364 million).

While the consumer games business is in a period of transition as it moves away from packaged retail and towards digital, Sega's PC, console and mobile games were not the source of the problem.

Rather, the revision follows a drop in sales for both its Pachislot/Pachinko and Amusement Machines divisions.

Related stories

"Sega had a plan, to quietly become a powerhouse in PC publishing"

Relic Entertainment's Justin Dowdeswell on regaining stability after THQ's collapse, and the imminent launch of Dawn of War III

By Matthew Handrahan

Sega has double standard for Puyo Puyo Tetris streaming

Japanese publisher issues rules for content creators featuring puzzle game; North American arm says they won't apply

By Brendan Sinclair

Latest comments

Sign in to contribute

Need an account? Register now.