Sega-Sammy In The Red

[Wizard]

Fri Jul 27, 12:03 PM

 

TOKYO (AFP) - Japanese game company Sega Sammy Holdings Inc. said Friday it slipped into the red in its first quarter as its businesses aimed at children slipped.

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The company -- born through a 2004 merger between video-game maker Sega and pinball machine company Sammy -- posted a net loss of 5.08 billion yen (42.87 million dollars) during the three months to June, reversing the year-earlier net profit of 779 million yen.

 

The company also went into the red on an operating level, posting a loss of 2.43 billion yen compared with an operating profit of 2.80 billion yen.

 

Revenue grew 11.4 percent year-on-year to 95.42 billion yen.

 

The company said it continued to enjoy strong sales in its key business of pachinko -- a pinball game played in thousands of garish, smoky parlours across Japan. Critics say pachinko is a barely disguised form of gambling.

 

Revenue in the pachinko division jumped 75.23 percent to 38.2 billion yen.

 

But the company said it faced tough competition for other forms of entertainment, particularly those geared towards children. Japan has one of the world's greyest populations with young people having fewer and fewer children.

 

Sega Sammy said one ray of hope was its "Dinosaur King" card games, which have grown in popularity after becoming a Japanese television animation earlier this year.

 

Sega Sammy said it continued streamlining game arcades, closing 10 more and opening three to leave a net total of 442 at the end of June.

 

Yahoo News

[ken_cinder]

Guess messing with a gaming company that is 100x more inclined to make great arcade titles and holding them back WILL screw you.

[JKKDARK]

Dinosaur King, they released it on the arcades. I want it!!

[esoteric]

That's what Sega gets for merging with Sammy.