Sega cuts video game losses by streamlining business

Sega Sammy today reported reduced revenues and profits for its second fiscal quarter, due mainly to poor amusement machine and pachinko sales -- although its video game business continued to benefit from streamlining. The company's consumer business, which houses its video game business, saw a heavy reduction in losses, thanks to streamlining that saw a reduction in the number of titles the company released. The company noted its continued efforts to adapt to the changing business environment, as the industry gears itself towards social and smartphone games. It blamed "turmoil in the global financial markets, mainly in Europe, and the economic slowdown of emerging nations" for the remaining losses. Hatsune Miku Project Diva F sales were strong, said the company, as were continued sales of games released in previous quarters. In terms of mobile games, Sega said that Kingdom Conquest is selling strongly, while the Pokelabo-developed The Clan Battle of Fate is looking promising. In comparison, Sega's pachinko and amusement machine businesses saw reduced profits, due to a lack of major new titles, noted the company. For the quarter through September 30, 2012, Sega's consumer business saw revenues of ¥35.3 billion ($439.7 million), up 5.6 percent year-over-year, and operating losses of ¥0.7 billion ($8.7 million), improved compared to ¥6.0 billion ($74.8 million) in losses year-over-year. Overall, the company took revenues of ¥136.5 billion ($1.7 billion), down 10.6 percent year-over-year, and profits of ¥3.8 billion ($47.3 million), down 2.6 percent year-over-year.