Sega Sammy's games business loses $20 million

Sega Sammy's games business loses $20 million:
Japanese corporation posts net profit for second quarter 2012 while consumer segment's year-over-year losses drop 60%.
Sega Sammy's consumer business is still losing Yen, but the rate of hemorrhage has slowed, according to the company's second quarter 2012 financial statement. Its consumer segment (which includes video games as well as toys) posted lower sales but also lower losses compared to the same period ended June 30 of last year, in a statement indicative of overall improving health for the Japanese corporation.

Sega Sammy's consumer segment reported ¥15.1 billion in sales ($193 million) and ¥1.6 billion ($20 million) in net losses for the period ended June 30. The second quarter of 2011 saw ¥16.2 billion ($207.5 million) in sales and ¥3.9 billion ($49.4 million) in losses, meaning the company's year-to-year sales shrunk by 6.9 percent while its losses decreased by 59.6 percent. The statement reported that Sega Sammy's "structural reform policies" dictated fewer total games be made, and total sales were similarly diminished with 1.3 million copies worldwide down from 2011's 2.3 million.The company's performance has remained favorable in the mobile gaming market and it seeks to expand into social network-based games, it said.

The statement also mentioned Sega Sammy's decision "to carry out streamlining of the organization responsible for the packaged game software field in the U.S. and European markets in a bid to establish a structure that can consistently generate profit," referencing the closure of several European and Australian offices and the consolidation of their services to third parties.

Sega Sammy's combined segments posted ¥70 billion ($896 million) in sales and ¥2.5 billion ($32.6 million) in net profit for the second quarter of 2012.

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"Sega Sammy's games business loses $20 million" was posted by Connor Sheridan on Tue, 31 Jul 2012 11:43:29 -0700

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