Sega Sammy shows increased profits ... without games
More good gaming biz news keeps rolling in, though this silver cloud comes with a gray lining. Sega Sammy (more commonly known as just Sega) announced a 52% increase in profits of $322 million for the first six months of the year, compared to $211 million last year. Before gamers stop and cheer, the profits aren't helped any by the actual video game division.
Sega Sammy's game division was hampered by R&D costs resulting in a $57 million loss despite an increase in software sales. The full year forecast is also lower due to problems with the company's pachinko division. This just goes to show you how minimally actual video games impact the company.
Video games only make up 14% of Sega Sammy's $2.4 billion in sales. Since they're pulling a loss, holding onto the game division may start looking like a bad idea. Will Sega be able to make a transition into the next-generation era, or will they start feeling the pressure? No other company is showing similar financial difficulties moving into 360 and PS3 development. No company can last forever, but let's hope Sega manages to stay in the game a bit longer ... we still have a soft spot for the Dreamcast.
