Sega Posts $169 Million First-Half Loss20 Nov, 2001 By: Hive News
Tokyo-headquartered Sega Corp. on Tuesday reported a $169 million loss for the first fiscal half due to devalued investments that more than offset gains in video game business after the company jettisoned the unprofitable Dreamcast console, according to an Associated Press report from Tokyo.
Sega has been repackaging itself as a gamemaker for other systems after it stopped making Dreamcast earlier this year.
Sega's sales fell 18% to $795 million, following scaled back turnaround plans. It took a charge of about $236 million related to securities holdings that plunged in value in the recent stock market fall. Many of these shares were donated by Isao Okawa, the Sega chairman and president who died in March, to contribute to Sega's bail-out from the Dreamcast collapse.
Sega now forecasts a group net loss of $122 million for the full fiscal year ending in March, according to the AP report, after initially counting on making a profit. Sega expects sales of $1.6 billion, reflecting the success of its core game-software and arcade businesses, the AP reported.
Sega, which is starting to lift game profits, says it also hopes to expand into Internet music, driving simulators and broadband karaoke downloads. The company also intends to bring in more quality game designers and strengthen research and development, the AP report from Tokyo said.