Sega reports profit loss
Sega announced today that it expects to profit 5 billion yen for the year ending March 2003 compared to 18 billion yen as estimated this May. The company expects an operating loss of 5.4 billion yen for business concerning home gaming, where it had originally expected to make 8 billion yen. Sega stock dropped 300 yen, as the company is directly blaming NFL 2K3 for lack of production. Also in the list of scapegoats is the delay of a few titles previously expected to make the holiday season.
"We miscalculated financial targets for this year because of over-confidence stemming from results last year and a lack of experience as a third-party software publisher," said president Hideki Sato.
Sato even admitted "total defeat" to Electronic Arts, whose Madden NFL 2003 dominated the market compared to NFL 2K3. Originally projected to sell 1.6 million units, NFL 2K3 has sold a measly 300,000 units to date.
Tetsu Kayama, CEO of Sega, is attempting to reassure consumers, as he stated at a recent press conference, "We will tighten our grip to improve the quality of games and to save on development and sales costs. Our goal to become the world's leading game software publisher remains unchanged."
11/7/2002 Matt Stensrud