SEGA’s full-year profit estimate reduced by 90 per cent
SEGA has announced that it’s cutting revenue and profit forecast for the fiscal year ending in March 2016. Revenue forecast has been dropped by ¥65 billion to ¥355 billion, resulting in a 15 percent reduction. Operating income will also be reduced from ¥25 billion to ¥10 billion. Net profit is declining by nearly 90 percent from ¥19 billion to just ¥2 billion.
There are a few reasons behind this. First, SEGA’s pachislot machine sales expectations are down from 265,000 units to 154,000 units and its pachinko machine expectations are down from 220,000 units to 203,000 units. The company is also experiencing “intensifying” competition within the Japanese market when it comes to the Entertainment Contents Business (games) and longer development lead times. That means SEGA doesn’t have a whole lot of titles coming up immediately due to delays.
