Sega Sammy Earns Nearly $400M in FY2010

Consumer Division Profits Despite Slowing Game Sales

Going a bit beyond Friday’s sales numbers, overall fiscal year 2010 data released by Sega Sammy Holdings indicates the company is back to profitability.

In all, Sega Sammy earned about $397.2 million in profits for FY2010.  That is a more than 340 percent jump in operating income.  What’s more, Sega Sammy is anticipating profits to hit the ¥40 billion mark for FY2011–that’s over $432 million.

Under the consumer division–under which Sega’s home video game sales fall–actual FY2010 sales were off by 7.5 percent to over $1.3 billion.  Still, the division became profitable, posting earnings of about $68.5 million.  Sega Sammy forecasts its consumer division to make ¥7 billion for FY2011–a more than 11 increase to over $75.7 million in US currency.

Amusement sales, the division that houses Sega’s arcade sales, also saw a nearly three percent increase to ¥7 billion for the fiscal year.  However, Sega Sammy is forecasting a considerable dropoff for FY2011, with anticipation of a ¥5.5 billion, or about $59.5 million.

Looking forward, Sega Sammy estimates game sales to be down across the board for the next fiscal year.  Only 16.9 million copies are expected to be shipped for FY2011, compared with more than 26.7 million for the closing year.  Emphasis will be placed on releases for XBOX360, the PC, and the Playstation Portable this coming year.