Sega Sammy's game business weighing down earnings
Publisher treading water as booming slot machine business offsets poor home gaming numbers due to weakness in the West.
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It's not that Sega Sammy is doing especially poorly, per se. It's more that the Japanese company continues to struggle in the Western market.
Today, Sega Sammy issued its April-December 2011 earnings, reporting revenues of ¥312 billion ($4.07 billion), down .5 percent from the same period in 2010. Profit also gave up some of its massive gains from the year-ago period, falling 6 percent to ¥34.384 billion ($449 million).
Sega Sammy's slot-machine business in Japan continues to be the company's moneymaker, as the segment posts an operating profit of ¥67.495 billion ($881 million) on revenues of ¥177.716 billion ($2.32 billion). The consumer business, of which console, handheld, mobile, and social games are party, is Sega Sammy's second-largest segment and did not fare so well.
Net sales for its home-gaming segment fell 4.9 percent year-over-year to ¥64.101 billion ($837 million). The segment also reversed last year's modest operating profit, posting a ¥5.51 billion ($71.9 million) operating loss during the period.
Though Sega Sammy proffered no console unit-sales figures, the company said top releases during the period were Mario & Sonic at the London 2012 Olympic Games and Sonic Generations. The company also said that it found significant success with its mobile title Kingdom Quest, which sold 2 million units.
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