Please support Game Informer. Print magazine subscriptions are less than $2 per issue


Sega Drops Full-Year Profit Outlook By 68 Percent

by Mike Futter on Nov 02, 2015 at 02:10 AM

Sega has reported its half-year financials, and while things look good at the half-year, rougher times are ahead. Despite being ahead of last year in operating income and profits, the company has dropped its outlook for the full year.

For the six months ended September 30, Sega sales trailed last fiscal year’s performance by 2.5 percent. The company reported ¥154.3 billion ($1.28 billion) for the period. 

Operating income was up 110 percent to ¥5.7 billion ($47.3 million). Profit was ¥964 million ($8 million), up from a loss of ¥2.8 billion ($23.2 million) at the same time last year.

However, the company is dropping full-year sales estimates by 1.1 percent and operating income by 4.3 percent. The significant change comes in net profit, which was expected to be ¥3 billion ($24.9 million) at the start of the fiscal year. Sega now anticipates ¥964 million ($8 million) in profits, a reduced estimate of 67.9 percent.

Sega says that higher than anticipated corporate taxes. Additionally, the publisher notes that the the pachinko and pachislot market is still soft as venue operators are slow to replace machines. 

Further, Sega has adjusted its release schedule with regard to smartphone games in Japan. Other games in its lineup for that market weren’t as well received as expected, also.

[Source: Sega (1), (2)]


Our Take
Sega still anticipates closing the year in the black, a significant improvement over last year. While the downward revisions are unfortunate, the results (if met) are still a big step in the right direction.