Sega's Losses Widen, But a Turnaround is in Sight

The company attributes much the poor performance to a one-time charge of $660 million related to the death of Dreamcast, including losses stemming from clearing inventory, though the company’s overall sales slumped by 28 percent for the fiscal year. Brighter days may be just around the corner as the company recreates itself as a third-party publisher; Sega is predicting that its next fiscal year will see a profit for the first time in five years. The company expects to post sales of $1.5 billion for a group profit of $17.1 million in the fiscal year ending March 31, 2002.