Sega Sammy Holdings Financial Results Quarter Ended 06/30/10, Net Profits Return

In the home video game software industry, the demand was generally weak in the U.S. and European markets due to the headwind like sluggish personal consumption. The Group needs to adapt to changing business environment in which the market demand for new content geared to social networking service (SNS) and smartphone is expanding.

《Consumer Business》

In the consumer business, the Group recorded sales of home video game software such as “IRON MAN 2” and “Alpha Protocol”, this year’s major titles for the U.S. and European markets. While domestic sales were mostly firm, in the overseas markets, sales of new titles remained slow as affected by the adverse market condition. As a result, the Group sold 1,680 thousand video game copies in the U.S., 1,330 thousand copies in Europe and 270 thousand copies in Japan and other regions, for a total of 3,290 thousand copies.

In the toy sales division, domestic sales of main products as well as sales of “BAKUGAN” at both domestic and overseas market remained solid. The mobile phone and PC content business also remained solid, thanks primarily to downloadable games for PCs. In the animated films business, distribution revenue remained favorable thanks to the sound box office sales of the 14th theater film “Detective Conan” while overseas royalty revenue from “BAKUGAN” stayed robust.

As a result, net sales in this segment were ¥20,859 million (an increase of 15.4% for the same period in the previous fiscal year), and an operating loss was ¥636 million (compared with an operating loss of ¥4,500 million for the same period in the previous fiscal year).

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