"TOKYO, Aug 5 (Reuters) - Japanese video game publisher Sega Corp. (7964.T: Quote, Profile, Research) said on Thursday its quarterly profit tumbled 51 percent, hurt by higher costs to open new arcades and price falls in the North American game market.
But Sega, which is scheduled to merge with slot machine maker Sammy Corp (6426.T: Quote, Profile, Research) in October, said that unit sales of video games were better than expected and maintained its forecast that group net profit would fall about 9 percent in the year to March.
Since ending its loss-making Dreamcast game console business in 2001, Sega has shifted its focus to software development but has come up against tough competition in the sports games genre from other developers, notably Electronic Arts Inc (ERTS.O: Quote, Profile, Research) .
Sega, currently owned 22.4 percent by Sammy and known for its popular Sonic the Hedgehog game, said group net profit totalled 932 million yen ($8.40 million) in the three months to June 30, compared with 1.89 billion yen in the same quarter last year. "
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