Sega has downwardly adjusted its financial forecast for the year ending March 31, 2018, largely due to difficulties in its Pachislot and Pachinko Machines business.
The company initially predicted full-year net sales of 380 billion yen ($3.38 billion) and profits of 11 billion yen ($98.1 million), however the Japanese giant has now tempered expectations.
In light of those adjustments, the firm now expects to see net sales of 330 billion yen ($2.94 billion), a downward revision of 13.2 percent. Meanwhile, the company's profit forecast has been slashed by 54.5 percent to 5 billion yen ($44.6 million).
Despite that decline, Sega's Entertainment Contents business, which houses its video game operations, appears to be one of the better performers.
The company's most recent financials revealed sales in the division were up by 3.8 percent during the first two quarters, largely thanks to the strength of big-name titles like Sonic Mania and Total War: Warhammer 2.
Sega also waxed lyrical about its mobile roster, talking up smartphone efforts like Puyopuyo Quest and Hortensia Saga.
While the company suggests some of its digital games might be delayed "compare[d] to the initial plan," it remains confident of surpassing its operating income forecast thanks to the performance of new and mainstay titles in the packaged game and amusement machine markets.