Sega Warns of Losses

Sega Enterprises is warning investors that losses for its fiscal year ending March 31 will be steeper than previously thought. The company believes that red ink for year will total $408 million, more than double the company's earlier estimate of $180 in group operating losses. Sega reports that better than expected Dreamcast sales in Europe and United States were not enough to balance weaker than expected Japanese sales, were the Dreamcast sold only 600,000 of it's 1.1 million unit forecast. A revised Japanese software forecast calls for sales of 4.3 million games, less than half of the earlier prediction of 8.75 units. Arcade sales are also set to miss projections. Sega will sell 36 million new shares, values at $921 million, to partner CSK Corporation to help shore up the company's finances.