Sega Financial Projection Slides On Pachinko Shortfall
Sega Sammy has revised its financial projects for the fiscal year ending March 31, 2014. The company cites a postponement of pachinko and pachislot sales machines into the new fiscal year as the reason for the adjustment.
The company is now anticipates closing the fiscal year with net income totaling ¥30 billion ($293.6 million), down from ¥47 billion ($459.9 million). Sega also notes that packaged (retail) game sales have been “sluggish,” with digital making up the difference. For comparison, Sega finished its last fiscal year with a net income of ¥33.5 billion ($327.8 million).
This note is in line with Sega’s intent to shift resources away from amusement machines, amusement center operations, and packaged games to its digital business. Sega has had a strong financial year, with its most notable move being the acquisition of Atlus parent Index Corporation. This lead to Sega creating a new corporate subsidiary out of Atlus, elevating it once more from brand to business.
Sega seems to be making the necessary moves to strengthen itself for long-term gain. Focusing on digital, which has been strong for the company aligns with industry trends. The acquisition of Atlus sets Sega up for a strong 2014-15 with the upcoming release of four different Persona titles.