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Sega Sammy Games Business Sees Red

Pachinko sales strong.


Sega Sammy Holdings announced its midterm earnings today, reporting higher sales and income than it had previously announced on May 13.

For the six month period through September 30, the company saw net sales of 152,602 million yen, ahead of the forecast 150,000 yen. Operating income was at 15,181 million yen, and net income was at 3,980 million yen, both also ahead of forecasts.

Much of the success was due to the company's pachislot and pachinko machine business, which reported sales of 74,918 million yen and operating income of 20,631 million yen. This division sold 310,000 pachislot machines and 400,000 pachinko machines. Orders for Pachislot Hokuto no Ken, which is scheduled to ship in December, have already exceeded 160,000 units, which is far greater than initial expectations.

The company's consumer business, which includes video games and toys, did not do so well, with Sega Sammy describing the US and European markets as being weak due to such issues as sluggish personal consumption. Sales were at 33,810 million yen, a decrease of 13.1% from the same period last year. The division posted an operating loss of 6,004 million yen, down from the 1,306 million yen lost the year prior.

Major titles for the period included Captain America (PS3, X360, Wii and DS) with 450,000 units sold, Rise of Nightmares (Xbox 360) with 200,000 units sold and Sakatsuku 7 Euro Plus (PSP) with 200,000 units sold.

The company's amusement machine business saw sales of 20,591 million yen and operating income of 1,591 million yen. Sales of Sega Network Mahjong MJ5 were solid, and distribution revenue remained solid due to titles such as Border Break, which operate on a revenue sharing model. The company said that the amusement center market has been recovering as consumers seek out more accessible entertainment.

You can see Sega Sammy's full earnings statement here (PDF, English).

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