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Sega cuts full-year profit estimate by 90 per cent

first_imgSega cuts full-year profit estimate by 90 per centWeak sales and product delays blamed as Sega lowers its revenue and profit forecasts for the second time this fiscal yearMatthew HandrahanEditor-in-ChiefFriday 4th December 2015Share this article Recommend Tweet ShareCompanies in this articleSEGA CorporationSega has cut its revenue and profit forecast for the fiscal year ending in March 2016, in part due to delays in its game release schedule. The Japanese publisher has lowered its revenue forecast by ¥65 billion to ¥355 billion, a 15 per cent reduction. The impact on profit is more pronounced, with operating income expected to be 60 per cent lower – from ¥25 billion to ¥10 billion – and net profit expected to be almost 90 per cent lower – from ¥19 billion to just ¥2 billion.Sega offered multiple reasons for the change. It has revised its pachislot machine sales expectations down from 265,000 units to 154,000 units, and its pachinko machine expectations down from 220,000 units to 203,000 units.Related JobsSenior Game Designer – UE4 – AAA United Kingdom Amiqus GamesProgrammer – REMOTE – work with industry veterans! North West Amiqus GamesJunior Video Editor – GLOBAL publisher United Kingdom Amiqus GamesDiscover more jobs in games In the Entertainment Contents Business – essentially the games division – Sega cited “intensifying” competition within the Japanese market, and the need for longer development lead times as a result. This is likely a reference to the company’s relatively barren schedule of new releases, which it claimed has also been altered by delays.”Operating results of the Entertainment Contents Business for the current fiscal year is expected to fall below the initial forecast due to a delayed release schedule of mainstay titles against the initial plan in the packaged game software field and amusement machine field as well,” the company said.In September, Sega lowered its six-month revenue forecast by 22 per cent. It ultimately earned less than that revised estimate.Celebrating employer excellence in the video games industry8th July 2021Submit your company Sign up for The Daily Update and get the best of GamesIndustry.biz in your inbox. Enter your email addressMore storiesSega’s strong Q1 games performance erased by impact of COVID-19Revenue from resorts, arcades and pachinko machines all plummeted as pandemic led to closure of public spacesBy Matthew Handrahan 9 months agoSonic The Hedgehog film character design will change, says directorJeff Fowler promises to overhaul Sonic’s look following the negative response to the film’s trailerBy Matthew Handrahan 2 years agoLatest comments (1)Alfonso Sexto Lead Tester, Ubisoft Germany5 years ago They need more games indeed. I’m guessing that their decision to stop selling old games in new platforms (Including the removal of classic 16bit games from the mobile markets) also had an impact to this.Note: Have to say that the image was absolutely appropriate. 0Sign inorRegisterto rate and replySign in to contributeEmail addressPasswordSign in Need an account? Register now.last_img

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