Japanese game company Sega Sammy said Friday it had slumped into the red in the six months to September amid sluggish sales of "pachinko" pinball machines and tighter regulations. Sega Sammy Holdings Inc posted first-half net losses of 20.3 billion yen (180 million dollars), against a profit of 38.0 billion yen a year earlier.
Operating losses came to 4.4 billion yen, compared with an operating profit of 62.9 billion yen a year earlier, while revenue dropped 18.5 percent to 231.1 billion yen. The company also attributed the loss to slower-than-expected sales at game arcades and sluggish sales of video game software.
"Faced with continuing declines in the number of pachinko halls, the industry as a whole must attract a wider range of users and reinvigorate the market" with new products, it said. The company has lowered its projections for the year to March 2008. It now forecasts net profit of 1.0 billion yen, operating profit of 20.0 billion yen and revenue of 540.0 billion yen. Three months ago, it forecast net profit of 35 billion yen, operating profit of 70 billion yen and revenue of 670 billion yen.
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