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Sega Sammy Cutting 200 Jobs In Its Pachinko Division Due To Poor Sales
Sega Sammy Holdings (the result of the merger between the two companies that focuses primarily on arcade machines) is soliciting "voluntary retirement" on around 200 jobs.
The unfortunate loss of jobs is a result of poor sales in Sega Sammy's typically very profitable pachinko and pachislot arcade machine business. In a press release announcing the "extraordinary loss," Sega Sammy cited poor sales of machines like Pachislot Hokuto No Ken Tomo (Fist of the North Star) and Pachislot Bayonetta not hitting even half the sales they were expected to. Sega points to 22% percent loss compared to its initially publicized sales forecast. It also moved some of its expected revenue into the next fiscal year, which contributed to the large loss. The revenue isn't gone – just delayed.
[Source: segasammy.co.jp, via TSSZnews]
Our Take
It's always tough to hear about the loss of jobs and we hope the best for those affected. The pachinko and pachislot machine side of Sega's business is a typically highly profitable one, but it's not a side of the business we see in North America due to the lack of interest in arcades. It's unclear if this will have repercussions on the side of Sega we are more familiar with – the console video game side.
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