Sega Sammy Holdings posted weak financial results for the fiscal quarter ending June 30, including a net-profit loss of $28.1 million -- last year in the same quarter it posted a net profit of $89.6 million. Contributing to this was a 22.3 percent decrease in Sega's regular sales, bringing the entire company's operating loss to $49.9 million, which is 500 percent higher than last year's quarter.

Sega Sammy noted "generally weak" demand in United States and European markets as a major loss factor, citing "sluggish personal consumption" in the regions and the need to adapt its focus to social and smartphone gaming. Sega said Japanese sales remained strong and its iOS title Kingdom Conquest was downloaded 1.3 million times, while pay-per-use sales of the online pachinko service 777 Town "remained solid." This could mark a shift in Sega's operating tactics, so we'll be on the lookout for Sonic's Social Network App for Android and iOS later this year.

This article was originally published on Joystiq.