Sega Sammy Posts over $500M Loss

Sega Sammy Holdings took a big hit in Fiscal Year 2008.

The company posted a ¥52.47 billion loss for the year–that’s equivalent to $501 million. Sales were relatively robust at ¥458.98 billion ($4.38 billion.) However, that’s still down from ¥528.4 billion in sales from last fiscal year–a little over $5 billion–and that turned a profit of ¥43.46 billion ($415 million.)

The game division fared a bit better–sales were up, but the division still posted a loss equivalent to $56.3 million.

Sega Sammy Holdings blamed the big loss on sagging pachinko and arcade unit sales, with higher fuel costs contributing to the pain. Unfortunately, it’s because of these sags where the pinch will be felt worse. The company will be cutting 400 jobs and closing 110 facilities in the entertainment division.

The move will hopefully aid in Sega Sammy’s prediction to post a profit of $47.4 million for FY2009, with sales projected to hit $4.48 billion.