Sega Sammy reports revenue and profit falls

Japanese gaming giant Sega Sammy Holdings has reported a fall in both revenue and profit for the six months ending September 30th.

Revenue fell to 1.2bn, a decline of 29.9 per cent. Net profit fell 83.7 per cent to 30m.

Unsurprisingly the Japanese earthquake was the chief culprit in the decline, with the disaster devastating” the supply chain for its pachinko arcade operations.

The consumer games division saw revenue fall 13.1 per cent year-on-year to 269.5m. Operating losses increased by almost a factor of five to 47.7m.

In total the unit shifted 4.8m games units, with Europe proving the most successful region accounting for 2.12m of that total. Releases in the period such as Captain America were described as slow” and affected by adverse market conditions”.

In the home video game industry, demand was generally weak in the US and European markets due to the headwinds such as sluggish personal consumption,” the firm stated.

The Group needs to adapt to a changing business environment in which the market demand for new content geared toward social networking services and smartphones is expanding.”