Sega's fiscal forecast chopped - but video games aren't to blame
Despite showing great signs of financial recovery during the current fiscal year, Sega today admitted that its full-year earnings aren't looking quite as hot as it first anticipated -- although it's not the fault of video games.
The company has seen notably increased revenues and profits
this fiscal year, thanks in part to high demand for its digital game offerings.
However, in a statement today Sega adjusted its full-year forecast, lowering its expectations by a considerable margin, due to a switch-up in its Pachinko business.
Previously Sega had forecast revenues of 485 billion yen ($4.8 billion) and profits of 47 billion yen ($461.6 million) for the full fiscal year ended March 31, 2014. Now the company is predicting revenues of 377 billion yen ($3.7 billion), down 22.3 percent on its original estimate, and profits of 30 billion yen ($295.1 million), down 36.2 percent.
"After postponing the sales schedule of some of the pachislot machines to the next fiscal year under a policy in the Pachislot and Pachinko Machine Business, with an aim to maximize the unit sales amount, the pachislot unit sales for the year ending March 31, 2014 is projected to be about 307,000 units (previous forecast: 478,000 units)," said the company.
Pachinko machine sales will also be down on the original forecast, from 324,500 unit sales to 198,000. Sega will be hoping that those machines held back until the next fiscal year will do the job at a later date.
Sega also announced a variety of staff management change-ups. Sega Sammy director Naoya Tsurumi will act as the company's Senior Managing Director from April 1, while director Norio Uchida will move into a managing director role.