SEGA-Sammy Suffer 9 Month Decline News
Chris Leyton
08/02/2008
Drop in net sales, operating and net income as Japanese giant suffers Pachinko slowdown...
SEGA Sammy today posted concerning results for the nine month period ended December 31st 2007. Showing a decrease in net sales, operating and net income the Japanese giant attributed the losses primarily due to changes in the company's primary pachinko and amusement business.
For the nine month period SEGA-Sammy posted net sales of 342.09 billion yen (£1.62 billion) compared to 404.29 billion yen (£1.92 billion) during the same period for the previous year. Operating income for the period stood at a loss of 1.5 billion yen (£7.12 million) in contrast to an operating income of 75.19 billion yen (£356.82 million) in the previous nine-month period. As a result the resulting net loss stood at 15.77 billion yen (£74.84 million), compared to a net income of 49.38 billion yen (£234.34 million) during the nine month period ended December 31st 2006.
Despite the reduction in Pachinko unit sales and the closure of 30 amusement parks across Japan, SEGA's consumer videogame business overseas sales increased primarily due to the strong performance of Mario & Sonic at the Olympic Games. Sales of videogames across Japan however suffered a decline with sales of 1.88 million copies, while sales topped 6.25 million in the US and 6.52 million units across Europe.