Issue Date: Vol. 50, No. 6, June 2010, Posted On: 5/25/2010
Sega Profits Up Nearly 200% In Fiscal 2009
by Staff Reporter
Sega Sammy Holdings, Sega, Sega fiscal, videogames, video games, coin-op games, arcade games, Sega GameWorks, amusement industry
TOKYO -- Sega Sammy Holdings said profits rose almost 200% for the fiscal year ended March 31. The company posted a net margin of $218.5 million for the year even though total sales dropped more than 10% from the prior year to $4.2 billion. Total revenues were down 7.5% to $1.3 billion.
These results include performance across all divisions, including coin-op game sales, FECs, consumer videogames and slot machine-type devices. However, two key drivers of Sega's overall profitability were a rebound of pachinko (slot-type) machine sales, as well as the success of few key consumer game titles that sold more than one million copies each.
Sega said it plans to adapt to a changed market by focusing more on digital distribution and by developing "new content geared to social networking sites and smartphones." The company said in April that it had cut 73 jobs, half in London and half in San Francisco, representing about 12% of its global workforce, as part of a major restructuring of U.S. and European operations. It also eliminated the Sega Entertainment USA Inc. division in Chicago, closed or sold half its GameWorks arcades and transferred control of the nine remaining FECs to Sega Gameworks USA Inc.