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Sega Profits Sharply Down; Overseas Coin-Op Game Sales Up 15.8%

Posted On: 11/10/2011

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Sega, Sega financial report, Sega Sammy, video game, Japanese tsunami, arcade game, amusement business, coin-op business, amusement business

TOKYO -- Sega Sammy on Nov. 1 announced its fiscal results for the six-month period ended Sept. 30, 2011. Net profits plummeted 83.7% to $51.2 million while revenue fell 29.9% to $1.95 billion. Company officials blamed the results on weak demand for home videogames and the effects of the March 11 earthquake and tsunami. | SEE REPORT

Sega's coin-op business appeared to have performed significantly better than its home videogame sector. Amusement machine sales and profits decreased 1.5% compared with the same period last year. For the period, coin-op game sales were down 3.4% in Japan but up 15.8% overseas. Strong distribution of earnings was achieved due to revenue sharing, executives said. The company noted especially strong sales of a mahjong-themed coin-op title for the Japanese market.

Arcade operations for the period resulted in decreased sales by 1.7% year on year, but operating income increased. Sega said same-store arcade sales in Japan outperformed the prior fiscal year by 45.5% due to increased management efficiencies.

The company said it operated 248 arcades in Japan; only one facility remained closed due to effects of the March 11 earthquake and tsunami.

Profits were slightly higher and revenues slightly lower than the company's recently revised forecast. | SEE STORY