2015 has been a pretty bad year for SEGA. The company reported a decrease of 42 percent in net sales in July, offered around 200 employees voluntary retirement in October, and recently admitted the quality of recent games has been unacceptable. Now, SEGA has announced that they are cutting the company’s revenue and profit forecast by a whopping 90% for the fiscal year ending March 2016.
SEGA has slashed their revenue forecast from ¥420 billion to ¥355 billion, resulting in a 15% difference. Operating income is dropping from ¥25 billion to ¥10 billion, while net profit is declining from ¥19 billion to just ¥2 billion. This seems to be because of delays in their game release schedule and the crowded Pachislot and Pachinko Machine market.
In a letter to investors, SEGA claims that they are looking to change up their business strategy and have revised their Pachislot and Pachinko Machine sales expectations, as competition in the Japanese market is “intensifying.” It seems that many upcoming SEGA titles are being delayed, as “higher-quality content is expected, thus resulting in a trend of longer development lead times.”
What do you think about all of this? Check out the source for the letter SEGA sent out to their investors.
Source: SEGA SAMMY Group