Sega's parent company, Sega Sammy Holdings, reported a positive quarter of earnings mostly on account of revenues from its pachinko business. On the video games front (in the Consumer Business unit), sales of Alpha Protocol and Iron Man 2 in North America and Europe disappointed.
Net revenues for the company were at 91.3 billion yen ($1 billion USD), up 51 percent over the 60.5 billion yen earned during the same quarter last year. For the Consumer Business unit, net sales totaled 20.9 billion yen ($241 million USD) with a recorded 636 million yen in operating losses.
Sega said that domestic sales of Alpha Protocol and Iron Man 2 were strong, but that "adverse market conditions" are to blame for slow sales in the U.S. and Europe. In total, Sega sold a little under 3.3 million units worldwide with 1.6 million of those in the U.S., 1.3 million in Europe and 270,000 in Japan.
Meanwhile, Nintendo reported a net loss for the April to June quarter as the strong Japanese yen and weak demand for its products hurt earnings.
The Kyoto-based maker of the Wii game console and the DSi handheld game console said it lost ¥25 billion (US$2.2 billion as of the last day of the period reported) during the quarter, against a ¥42 billion profit a year earlier. Sales fell by a quarter to ¥189 billion.
The sharpest decline was in demand for the Nintendo DS, of which global sales dropped by almost half, to 3.15 million units during the period.
The number of new games launched for the handheld in the quarter dropped by a third in Japan and by a fifth in the Americas, when compared to the year-earlier period, and that led to the weak sales, Nintendo said.
Nintendo left its full-year targets unchanged despite the quarterly loss. The company hopes to realize a profit of ¥200 billion on sales of ¥1.4 trillion. Those targets represent drops of 12 percent and 2 percent on actual results for its fiscal year ending March 31.