Full-year profits for Sega Sammy have dropped 34 per cent for the year ended March 31.
Net sales were down 4.5 per cent to JPY 528.23 billion, with operating income also down 35.8 per cent to JPY 76.53 billion and net income down 34.4 per cent, to JPY 43.46 billion.
The company has blamed the disappointing results on the sales of pachinko machines, which fell by 20 per cent.
Sega software sales reached 21.2 million units, with 5.8 million games sold in Japan, 8.2 million in North America, 7.1 million in Europe and 60,000 attributed to other regions.
The strongest performing titles included Sonic the Hedgehog on Xbox 360 and Football Manager on PC, Yakuza 2 on PlayStation 2 and Oshare Majo Love and Berry DS Collection.
The company's arcade business saw a net sales rise of 3 per cent to JPY 79.62 billion and operating income fell 4.1 per cent to 11.68 billion.