Sega Is Back In The Black Despite Lower Sales Numbers

Sega released their consolidated operating results for the 6 months which ended on September 30, 2015.  While their sales were a bit lower than it was this time last year, they’ve made 964 million yen profit thanks to less expenses on research and development.

As shown in the chart above, Sega has made a profit of 964 million yen in the 6 months period that ended on September 30th, showing that they’re in a much better position than they were at the same time last year when they were in the red for about 2.8 billion yen in losses.

The above is a look at Sega’s forecast of consolidated operating results for the year ending March 31, 2016.

Here’s more from the financial statements:

During the first half of the fiscal year ending March 31, 2016, the gradual recovery of the overall Japanese economy continued despite a lackluster performance in certain respects, as evidenced by such developments as improvement of both corporate earnings and the labor market due to the effects monetary and fiscal policies. With regard to individual consumption, in general, consumption levels have not fallen owing to steady improvements in both the employment environment and personal incomes. However, attention should be paid to the risk of downward pressure on the Japanese economy, caused by factors such as a downswing in China’s economy and other overseas economies, and fluctuations in financial and capital markets. Thus, a full recovery of the economy will require more time.

About Pachislot and Pachinko Machines, Video Games, And Entertainment:

In this climate, with regard to the pachislot and pachinko industry, pachinko parlor operators have been cautious about replacing pachislot machines with new machines corresponding to the change in application of the model test procedure of pachislot machines by the Security Communications Association, which conducts model tests for pachislot and pachinko machines, and purchasing by parlors has tended to concentrate on titles with successful track records. Thus, replacement demand for new pachislot machines was relatively weak. On the other hand, replacement demand for new pachinko machines remained strong, centering on major titles. In order to revitalize the market going ahead, it is essential to develop and supply machines that are compliant with various voluntary regulations and capable of appealing to a wide range of players.

 

In the resort industry, thanks to an increase in the number of foreign visitors to Japan spurred by the weak yen, an upward trend in the hotel occupancy rate is still evident and revenues of amusement parks and theme parks continue to exceed the previous year’s level. With a view to establishing Japan as a popular tourist destination, a bill concerning the promotion of the establishment of specified integrated resort areas (Integrated Resort Promotion Bill) was submitted to the Diet.