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Sega Sammy raises profit forecasts

Revenues still expected to fall as North American home software sales falter

Japanese publishing giant Sega Sammy Holdings has revised its full year financial outlook, predicting lower revenues but higher profits than previously thought.

The company now expects that revenues for the year ending March 31st, 2010 will be down 9.5 per cent on earlier estimates at ¥380 billion (£2.66m/$4.10m).

Net income though is now estimated at ¥18 billion (£126m/$194m), an increase of 20 per cent on earlier predictions.

As usual it was Sammy's pachinko and pachislot sales which dominated the company's financial results, with the delays of several new machines blamed for the fall of revenues.

A slump in amusement facilities operations, including the recent restructuring of Sega GameWorks in the U.S., were also partially responsible for the drop.

Weak software sales outside of Japan, particularly in North America, were also blamed for the drop though. Final sales figures are now expected to reveal only 26.3 million units sold, rather than the previously expected 29.7 million.

No indication was given of which games had underperformed, with key titles during the 12 month period including The Conduit, Mario & Sonic at the Olympic Winter Games, Aliens vs Predator and Sonic & Sega All-Stars Racing.

Sales of high margin Sammy brand pachislot machines and other improvements in the company's core pachinko business were responsible for the increase in profits.

General amusement machines sales also saw a profit increase that helped offset disappointment form Sega's home software sales.

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