Sega Sammy's games division has recorded an operating loss for the first half of the financial year of ¥1.3 billion ($16.1m / £10.1m) - an improvement on the ¥38.8 billion ($482.2m / £303.2m) loss for the same period last year.
Sales of home videogame software were up year-on-year from ¥15.7 billion ($194.6 / £122.3m) to ¥18.7 billion ($231.8m / £145.7m).
However, strong performances by the Pachinko, Amusement and Arcade departments helped the entire Sega Sammy corporation record a profit of ¥24.3 billion ($301.9m / £189.9m), compared to a loss of ¥6.3 billion ($78.4m / £49.3m).
Sales for the six months were up 41.1 per cent to ¥217.8 billion ($2.7bn / £1.6bn).
Sega described the home videogame business as slow outside of Japan, revealing it sold a total of 6.6 million games worldwide in the first half.
"In the home video game software industry, the demand was generally weak in the US and European markets due to the headwind like sluggish personal consumption," said Sega Sammy.
"The Group needs to adapt to changing business environment in which the market demand for new content geared to social networking service (SNS), smartphone is expanding."