Sega Expects Losses

Sega Enterprises is expecting to post a loss for this fiscal year. Previously the company had anticipated posting a profit of 1.5 billion yen ($13.8 million), which would have made the fiscal year ending March 31 the first profitable one for Sega in four years. The company instead revealed that U.S. and European price cuts would help reduce earnings by 18.5 billion yen ($170.6 million), as Sega was unable to scale back Dreamcast production costs to compensate for last August's $50 drop in the console's price. Until the full results are announced, Sega is hoping to quell concerns over the company's performance by revealing a new strategy to bring its software to rival consoles. Sega's Hideki Sato, who is slated to become COO of the company November 1, declined to offer any details on the plan, saying only that the company is "already in talks with a few foreign firms."