Sega slashes profit forecasts by 36 percent

Sega announced an adjustment to its earnings forecast for the fiscal year ending March 31, cutting its expected net income by 36.2 percent. The company adjusted its projected net income to be 30 billion yen ($293.5 million), down from its previously-reported amount, 47 billion yen ($459.8 million). Additionally, it expects its net sales to be 377 billion yen ($3.69 billion), a 22.3 percent decrease from its original projection of 485 billion yen ($4.75 billion).

Sega cited a decline in its pachislot and pachinko machine business for the change in projections. The company cut its pachislot machine sales projection by 171,000 units and its pachinko machine sales projection by 304,700 units for the fiscal year.

The biggest cut comes to Sega's projected operating income: a 49.3 percent slide from 73 billion yen ($714.2 million) to 37 billion yen ($362 million). Should Sega meet its new projections, it would amount to a year-on-year increase in net sales and operating income by 17.3 percent and 94 percent, respectively, but would also represent a 10.3 percent decrease in net income.
[Image: Sega]

This article was originally published on Joystiq.