Sega Cuts Down its Profit Forecasts by 36.2 Percent

The Sonic the Hedgehog creator made adjustments to its fiscal year’s earnings forecast. The company announced that it expects its projected net income to be $293.5M, down from $459.8 million. Further, its net sales are expected to be $3.69 billion, which is a sizeable 22.3 percent decrease from its original projection of $4.75 billion. It also anticipates that its operating income will be down a staggering 49.3 percent from $714.2 million to $362 million.

Intriguingly, the video game company attributes these financial slides to its flagging pachislot and pachinko machine business. The company previously reported anticipation of a loss for the fiscal year, which ends March 31.