Sega Sammy Holdings (holding company for Sega corp) has warned that it expects to lose $242 million USD this year as business slows down amid poor sales of Pachinko machines. The problems have sparked 400 job cuts at its game software division and the Wii's popularity is reportedly cited as one of the reasons as it brings the arcade market to the home user.
"The pachinko market has been hit by tighter regulations on the industry, while the outlook for the game arcade market has been dented by the soaring popularity of Nintendo Co Ltd's Wii game console that users play at home.
Sega Sammy predicted its pachinko machine segment would see operating profit fall 85 percent to 11 billion yen, and forecast its arcade division to post a loss of 11.4 billion yen, against a 132 million yen profit in the prior business year.
The net loss forecast reflects the pushing back of planned sales of real estate to the next business year and retirement benefits to the 400 employees being cut at Sega, equivalent to about 5 percent of its group workforce."
" The pachinko market has been hit by tighter regulations on the industry, while the outlook for the game arcade market has been dented by the soaring popularity of Nintendo Co Ltd's (7974.OS: Quote, Profile, Research) Wii game console that users play at home."
what you think?is wii truly having an effect or..sega just makes plain bad games and is using the wii as a scapegoat?
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