Sega Sammy has made a £17.4m loss for the first quarter of its financial year.
One of the biggest areas to suffer was its consumer business, which includes console and PC games. Sega sold 2,330,000 games during Q1, far below its performance the year before.
In total the consumer business made a £30m loss, driven by poor European and US sales of movie tie-in Thor and Virtua Tennis 4.
Sega said in its financial statement: "In the home video game industry, the demand was generally weak in the US and European markets due to the headwind like sluggish personal consumption."
The company also cited problems with electricity supply and the availability of parts and materials following the Japanese Earthquake in March.