Sega Announces Nine-Month Results and Restructuring Plans

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SegaSega announced its financial results for the nine-month period ended December 31, 2008 and announced major restructuring plans for its business.
Sega's reported net income of ¥10.840 billion (around $120 million) for the first nine months (ended December 31, 2008) of its fiscal year compared to net income of ¥15.766 billion in the same period the previous year. Sega attributed much of the drop to the deteriorating Japanese economy and the rising value of the yen. This has hurt game software sales as well as lower pachinko machine sales. Specifically, over the nine-month period Sega reported selling 21,090 copies of games. Sega has also revised its whole-year net-income estimates from a positive to a negative result.

In keeping with Sega's performance and the difficult economy, Sega has joined the legion of company announcing staff reductions. Sega expects to close 110 amusement facilities and reduce research and development into amusement machines by 20%. In conjunction with these closures and R&D reduction, Sega expects to eliminate 560 employees, and currently hopes that this can be accomplished by soliciting voluntary retirements.

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This page contains a single entry by Editor published on February 10, 2009 8:18 PM.

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