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Sega lowers financial forecast, cites 'sluggish' pachinko sales

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Sega Sammy Holdings adjusted its adjusted its projected financial results for the year ending March 31, 2014 from expected net sales of 485 billion to 377 billion yen, a decrease of 108 billion yen, which it pegged on postponed sales of pachislot and pachinko machines.

According to today's Notice of Adjustment of Consolidated Results for the Year Ending March 31, 2014 (PDF link), Sega is postponing some pachislot sales to the next fiscal year, citing "an aim to maximize the unit sales amount." As a result, Sega adjusted the previous sales projection of 478,000 pachislot units down to 307,000. The company also revised its expected pachinko machine sales from from 324,500 units to 198,000 because of "sluggish sales of titles other than the solid sales of Pachinko CR Hokuto No Ken 5 Hyakuretsu."

Sega's consumer business met with mixed results. The company characterized its packaged games business sales as "sluggish." However, sales in its digital games business were "robust," and the company singled out Phantasy Star Online 2 as well as the Android and iOS apps Chain Chronacie and Puyopuyo!! Quest for their performance.

As a result of the the recent success in its digital games business, Sega believes it can increase earnings by "shifting the management resources in the Amusement Machine Sales, Amusement Center Operations and the Packaged Games Businesses to the Digital Games Business which continues high growth."

Earlier this month, in Sega's financial results for the period ending Dec. 31, 2013, the company also reported declining packaged software sales and success in the digital market. Last October, Sega told Polygon that it plans to deliver connected games across multiple platforms.

"We want to be where games are, basically. I think the powerful thing for mobile, for us as a company, is just the potential audience," said Chris Olson, vice president of digital business at Sega. "It's an opportunity to introduce new players to Sega games and Sega characters."