Life comes at you fast if you're Sega Sammy. Just a couple of years after increased profits had the company rolling in money, the company today announced that it plans to lose a whopping 26 billion yen (approx. $230 million) this fiscal year. Compared to the previous projection of a billion yen profit for the year, the turnaround comes as a bit of a shock.
The main culprit behind the downturn seems to be the pachinko side of the business, which saw a predicted 85 percent fall in profits, and arcade sales, which switched from a slight profit last year to a 11.4 billion yen loss this year (damn that popular Wii).
To staunch the bleeding, the company will be offering early retirement to 400 employees and closing 110 unprofitable amusement parks and arcades around Japan. Hard to believe the previous incarnation of this company once held the lion's share of the home video game market.