SEGA Financials: Video Games Back in Black, But Sammy Causes 91% Profits Crash

Games division recovering.

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SEGA Financials: Video Games Back in Black, But Sammy Causes 91% Profits Crash
SEGA Sammy Holdings has released its financial results for the nine months ending December 31 2012, and the results are particularly hair-raising. While SEGA's consumer division (which includes video games) appears to be getting healthier, a dramatic fall in Sammy's pachinko operations has led to an overall profits slide of 91 per cent.

Net sales for SEGA's consumer division - which also includes its Toy and Animation portfolio - reached 60.3 billion for the period ending December 2012, compared to 63.5 billion during the same period in 2011. That's a drop of five per cent, but the division's operating income saw it climb out of the red. It made 0.5 billion this past nine months, compared to a loss of 5.5 billion the year prior.

Although SEGA did have to readjust its consumer division's operating income forecast from 0.5 billion to zero for the remainder of the fiscal year (ending March 31 2013), it's still a positive outcome when you consider the division made a 15.1 billion loss in the previous financial year. That result, if you remember, led to a large restructure at the company's European and North American offices.

While SEGA managed to hold together, Sammy's pachinko and pachislot division took a major hit after it decided to delay a number of key releases to the next fiscal year. The result? Operating income of 7.7 billion, a drop of 88.6 per cent from 67.4 billion and a far cry from the projected full-year estimate of 70 billion. That dragged down SEGA Sammy's total net income (profits): 3 billion compared to 34.3 billion - a fall of 91.3 per cent.

SEGA revealed that, due to its restructure in 2012 (and, more specifically, due to the reduction and cancellation of some projects) it saw a year-on-year decline in the number of games sold to consumers. In total, the company sold 6,940,000 units - that's compared to 12,600,000 units sold in 2011 in the same nine-month period. Here's a brief breakdown:

Europe Sales: 2,940,000 units
USA Sales: 2,430,000 units
Japan Sales: 1,570,000 units

PS3 Sales: 1,440,000 units
PC Sales: 770,000 units
360 Sales: 610,000 units
Vita Sales: 390,000 units
Wii U Sales: 260,000 units
PSP Sales: 20,000 units
3DS Sales: 10,000 units
Wii + NDS: 0 units

Of these, the company highlights the worldwide performance of some of its flagship titles. Sonic & All-Stars Racing Transformed has racked up 930,000 sales since launch, while Football Manager 2013 has sold 730,000 units. Yakuza 5, which is currently only available in Japan, has sold 580,000 units. Phantasy Star Online 2 was also noted for hitting more then 1.7 million registered users.

SEGA Sammy has revised its projections for the end of the fiscal year, with net income changed from 40 billion to 12.5 billion. The company has not revised its sales targets, meaning that it believes to be on track to accomplish 8,940,000 units by March 31 2013.

Source: SEGA Sammy Holdings
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