Sega Sammy Posts Big Losses

Despite growing sales in its SEGA games division, parent company Sega Sammy Holdings posted huge losses.

The game publishing division suffered a net loss of $505.7 million, following last year's profit of $465 million.

The company blamed high fuel costs for discouraging Japanese citizens to drive to game facilities, the success of expensive consoles that have reduced the appetite for arcades and poor sales of Pachinko game machines.

Responding to the losses, the company will turn out the lights in 110 of its 430 arcade centers, eliminate 400 jobs and outsource more of its videogame work.

Source: Ars Technica