Sega reported a whopping 42 percent drop in net sales, with sales earnings of $426 million, net losses of $63.8 million, and operating losses of $76 million. The company has tried to create mobile games, largely using the freemium gaming model, but has failed to woo potential mobile gamers.
"The economy still remained in the condition requiring further time for full recovery due to uncertainty towards a downswing in overseas economies arising from factors such as the slowdown of growth in the economies of emerging countries and European debt crisis," Sega said in a statement.
It makes sense that Sega would say its businesses losses are tied to the global economy, though other companies are reporting stronger financial results. Instead, some analysts and journalists believe Sega's effort to go mobile - which didn't go over extremely well - has led the company to reverse course and dedicate more time on creating console games yet again.
At this current point, it looks like Sega needs to pick console gaming or mobile gaming, and put a real effort into game development.