Sega Returns to Profitability

Despite posting a net profit of $8.3 million, a vast improvement from massive losses related to the discontinuation of Dreamcast in the first half last year, Sega admitted the game sales were significantly weaker than expected. Consumer game sales tumbled 19 percent, largely due to lackluster reception for new online and sports titles. One bright spot was Sega’s long-suffering arcade business, which saw sales jump 17 percent thanks to a fad for game incorporating trading cards. Despite the slow sales, Sega plans to reach $41 million in profit on revenue of $1.6 billion for the year as a whole.