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SEGA raises profit forecasts for 2010 by $186m

Expecting profits up 70% on 2009, thanks to arcade business – but consumer struggles

SEGA Sammy has adjusted its earnings estimates for April 2010 to March 2011, claiming a rise to $450 million (¥37,500 million) from its prior forecast of $264 million (¥22,000 million).

This was due to improved performance in the second half of the year, but this was not down to any recovery from its retail games.

"While the consumer business saw mainly sales of new titles in overseas markets hover at weak volumes," said the publisher, "the amusement machine sales business and amusement center operations business are expected to maintain robust operating results."

The company expects to sell 660,000 pachinko and pachislot machines during 2010, up from its previous projection of 620,000. In addition, it has reduced production costs and increased the number of reused parts.

As a result, while net sales for all SEGA Sammy products are now projected to rise a mere 2.5 per cent from 2009, net profit is pitched as being 70.5 per cent higher than last year's $243 million (¥20,269).

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Alec Meer

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A 10-year veteran of scribbling about video games, Alec primarily writes for Rock, Paper, Shotgun, but given any opportunity he will escape his keyboard and mouse ghetto to write about any and all formats.

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