Sega financial outlook improves

Japanese publisher Sega has revised its financial forecasts for the first half of the current financial year and for the year as a whole, citing improved sales of both arcade and home console products as reasons.

The company now expects to post a net profit of 5.7 billion Yen for the first half, which ended on September 30, up massively from its initial estimate of 200 million Yen, thanks in part to half-year sales which rose to 94.2 billion Yen from 88 billion Yen.

For the full financial year, which draws to a close at the end of March next year, Sega is now hoping to realise a net profit of some 8 billion Yen, with overall sales for the year of 195.7 billion Yen - making the company into one of the largest independent game publishers in the world, and putting it into the exclusive club of publishers which have turnover of over $1 billion. Out of all the game publishers in the west, only Electronic Arts and Take-Two Interactive have achieved this.

Sega's improved fortunes are attributed at least partially to the continuing success of Sonic Adventure DX and Virtua Fighter 4 Evolution on home consoles, while the arcade division has also realised better than expected sales of Key of Avalon.