Sega Sammy reduces games losses

Japanese publisher Sega Sammy has reduced its gaming losses for the first half of its financial year on the back of strong video games software sales which helped propel the company to record profits.

An operating loss for the six months ending September of 1.3bn ($16m) was reported for its games division – an improvement on the 38.8bn ($480m) loss in the same period the year before.

Game software sales were up sharply, climbing from 15.7bn last year to 18.7bn

However, the overall business reported far stronger numbers with its arcade operations propelling the company to a record profit of 24.3bn. In the same period last year it recorded a loss of 6.3bn. Sales climbed by nearly 50 per cent to 217.8bn.

The firm now suggests that it will going forwards increase its focus on emerging sectors such as smart phone and social network gaming, an area where it has already enjoyed strong success.

In the amusement machine and amusement centre industry, conditions remained difficult,” a statement from the company read. While awaiting the development and launch of new innovative machines that could boost the market, the industry itself is undergoing a changeover to new business models which simultaneously enhance investment efficiency for amusement centre operators and secure sources of stable earnings for amusement machine manufacturers.

In the home video game software industry, the demand was generally weak in the US and European markets due to the headwind like sluggish personal consumption. The Group needs to adapt to changing business environment in which the market demand for new content geared to social networking service (SNS), smart phone is expanding.”

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