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Sega Sammy Posts Quarterly Loss, Blames “Generally Weak” Demand For Video Games

July 31, 2011 Written by Sebastian Moss

Sega Sammy Holdings has posted weak financial results for the first fiscal quarter ending June 30th, including a net-profit loss of $28.1 million, down from a net profit of $89.6 million the same time last year.

Sega Sammy – formed from a holding company merger of Sega and Sammy – blamed “generally weak” video game demand in the U.S. and Europe for decreased video game sales that contributed to the loss. Japanese sales “generally remained solid,” with a total of 700,000 game units sold to retail, but “headwind-like sluggish personal consumption” meant that U.S. retail sales came in at just over a million, European sales totalled at 600,000 units.

The company said that to improve they would have to adapt to a market where “demand for new content geared to social networking service and smartphone is expanding,” but promoted the fact that it had 1.3 million downloads for iOS title Kingdom Conquest, and “solid” pay-per-use revenues from 777 Town.