Sega Sammy posts $42.3 million loss

Sega Sammy Holdings have announced financial results for the first quarter, posting net losses of 5.08 billion Yen, or USD 42.3 million.

Sega Sammy's pachinko, pachislot and arcade business saw healthy sales, with 126 thousand pachislot machines sold. Revenue in the pachinko pachislot division rose to 38.2 billion Yen, up from 21.8 billion Yen in the prior year.

Sales were down slightly in the consumer business, where Sega Sammy said most of its 1.4 million unit worldwide sales were driven by catalog titles.

"With the continued push out of our global development initiatives, R&D costs were above the comparable periodâs levels, and with major titles slated for release in the second half, many costs were recognized in advance during the 1st quarter leading to an operating loss in the segment," the company said in a statement.

Sega Sammy Holdings was created in 2004 from a merger between videogame maker Sega and pinball/pachinko manufacturer Sammy.