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Sega's Global Amusement Sales And Earnings Decline; Japanese Arcades Hold Strong

Posted On: 2/14/2012

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TOKYO -- Sega Sammy Holdings said its revenues and profits, representing all divisions, were down slightly for the first nine months of the current fiscal year (April 2011 through December 2011). Compared with the same period in 2010, companywide revenues stood at $4 billion, down half a percent, while profit fell 6% to $449 million.

Sales of slot-type machines such as pachinko remained steady, as did domestic Japanese sales of amusement equipment and home videogames. The company's weak spot remains videogame sales (both coin-op and consumer) in the U.S. and Europe.

Although company officials termed the amusements market "solid," they also reported net sales down 11.3% and operating income down 40.2% compared with the first nine months of 2010.

The company said final projections for fiscal 2011, ending March 31 of this year, are expected to show revenues down nearly 11% to $5.8 billion and profits down 8.5% to $498.7 million year-over-year.

Sega's Japan-based arcade chain held steady, with sales ticking up one-half of one percent for the period. Sega closed six arcades last year, operating 247 arcades by the end of 2011.

Sega Amusements USA, the company's American coin-op division, announced a consolidation and reorganization last July in an effort to cut costs and boost profitability. | SEE STORY