Warns of “Stagnant game software sales in North America”
On Thursday, Sega Sammy Holdings, the parent company of Sega, revised its earnings estimate up. But the heart of Sega’s business can’t be cited for the good news.
According to documents obtained by SegaBits, despite a downward revision of net sales by 9.5 percent, Sega Sammy still expects a near 30 percent operating income increase to ¥35 billion, and a 20 percent increase in net income (profit) to ¥18 billion. In US dollars, that’s $194.4 million, a more than $30 million increase in expectations.
This is happening despite decreased forecasts for both pachinko sales and “weak” game software sales in the Western world. Sega Sammy revised game sales down to 26.3 million units overall, from 29.7 million. However, as the below passage states, Sega Sammy has managed to increase profit margins despite slumping sales:
While the primary factors of stagnant game software sales in North America as well as slumping amusement facilities operations led to lower-than-expected income in the consumer business and amusement facilities business, income is projected to be higher than previously publicized, due to improved profit margins in the pachislot and pachinko machine business and amusement machine business.
So, while the company in whole may be healthy, the devil may be in details of how Sega’s consumer business is doing. Actual earnings will be released in a few weeks, and we’ll be sure to relay that information when it comes in.
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What happens when you continuously develop mediocre games.
“What happens when you continuously develop mediocre games.”
I don’t know, why don’t you ask Namco, Tecmo, THQ, Activision or one of the other many developers that do just that.
Sega on the other hand have put out a bunch of brilliant games in 2010 like
Yakuza 3, Yakuza 4, Bayonetta, Resonance of Fate, Valkyria Chronicles, Phantasy Star Portable 2, Napoleon Total War, Border Break, Lets go Island, Shining Force Cross, Football Manager, Virtua Fighter Showdown and so on Just in Q1 2010…
Name me one other 3rd party Japanese publisher that managed that many good games in the last 3 and a half months… I dare you. Capcom is the only one that comes close.
Maybe if you removed your lips from Sonics ball sack you’d see the rest of Segas good games…
Just sayin’
Also thanks TSSZ for linking back to Segabits.com for the source.
@Sharky. I noticed you made a list of mediocre games.
Maybe if you removed your lips from SEGA’s nuts, and played games that were actually of quality, you’d see that your list is just average bull.
Just sayin’.
@serpx: There’s always room for differing opinions. I don’t think TOO highly of most of the games on his list (haven’t even heard of some of them), but I wouldn’t dare assert that they weren’t brilliant to him. Valkyria Chronicles is quite good, even.