Sega full-year loss to widen
PrintDreamcast price cuts nuke profits
Posted in Business, 24th November 2000 10:33 GMT
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Sega today posted a ¥17.98 billion ($163.11 million) loss for the six months to 30 September, in line with the company's expectations.
As Sega had warned earlier, its attempt to revive flagging sales of its Dreamcast console by slashing prices and offering cash rebates knocked the company's earnings for six, turning an expected profit into a loss.
Sega's warning, made late last month, covered the full fiscal year. It said it will lose ¥22.1 billion for the full year to March 2001, very different from the ¥1.5 billion profit the company originally said it would see. Fiscal 2000 ended with a loss of ¥42.88 billion, and the company hoped to turn that around with a series of cost-cutting measures.
It didn't help though. Indeed, Sega today said that it now expects its full-year loss to widen, to ¥23.6 billion.
For the first six months of fiscal 2001, Sega saw sales static at ¥127 billion. ®
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