Sega slashes profit projection by 36% due to slowing amusement machine business

Sega has trimmed back its year's profit forecast due to a slump in its Pachinko and amusement machine business.

GI.biz reports that for the fiscal year ended March 31, 2014, Sega has reduced its revenue forecast from ¥485 billion to ¥377 billion, a reduction of 23% that equates to $3.7 billion.

The company's net income projection has fallen 36% from ¥47 billion to ¥30 billion; a $294 million drop, while its operating income has plummeted 49% from ¥73 billion to ¥37 billion.

It's worth noting that Sega's game business is not the issue here, rather the firm's amusement machine divisions.

In fact; Sega's last round of financials suggested that the company's focus on digital sales seems to be paying off. Profits are up overall.

What do you make of the above?