Author Topic: Sega Turns a Profit  (Read 4592 times)

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Offline MikeHrusecky

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Sega Turns a Profit
« on: November 20, 2002, 04:47:37 AM »
Sega returned to profitability in the first half of its fiscal year, but acknowledged that its video games didn't sell as well as it had hoped.

Sega earned $8.3 million (1.01 billion yen) in the six months through September in contrast to a loss of 20.87 billion yen in the first half a year ago.


Sales totaled $777 million (95.1 billion yen), down nearly 3 percent from 97.8 billion yen a year ago. Sales dropped 36 percent overseas, although sales in Japan edged up 6 percent.  


Sales in the arcade-game division were up 17 percent, thanks to the popularity of games in Japan using trading cards. Sales of consumer games were down 19 percent as online and sports games failed to sell as briskly as the company had hoped.  


Sega sold 810,000 games in Japan, falling short of the 1.14 million it had hoped to sell. U.S. sales totaled 2.56 million games, below its target of 3.6 million.  


Worries are growing about a slowdown in U.S. consumption in the months ahead. Adding to Sega's woes is the deflationary trend in Japan that is continuing to push down game prices.  


For the full year ending in March 2003, Sega expects to earn $41 million (5 billion yen on $1.6 billion (200 billion yen) in sales. Its lost 17.8 billion yen last fiscal year.