Sega Sammy Posts Quarterly Losses Of $42.3 Million

Officials from Sega Sammy Holdings have announced the company's quarterly results through June 30th, showing sales up slightly to ¥95.4 billion ($794.1 million), but net losses of ¥5.08 billion ($42.3 million) as R&D costs rose in its consumer business. Sega Sammy's pachinko, pachislot and arcade business saw healthy sales, with 126 thousand pachislot machines sold, topped by Devil May Cry 3 and Urusei Yatsura branded machines. Pachinko machines also saw good success, and its arcade division steady sales of Sangokushi Taisen 2 and Initial D Arcade Stage 4. Its card-based arcade titles saw "intense competition," however, despite strong sales of its new machine based on the Dinosaur King animated TV series. Sales were down slightly in its consumer business, where Sega Sammy said most domestic and overseas sales were driven by catalogue titles, to a quarterly total of ¥16 billion ($133.1 million). "With the continued push out of our global development initiatives," the company concluded, "R&D costs were above the comparable period’s levels, and with major titles slated for release in the second half, many costs were recognized in advance during the 1st quarter leading to an operating loss in the segment."