Sega's Q1 profits for the current fiscal year may be down but the software sales are higher then expected.

Sega have recently reported that their Q1 profits are down due to price drops in America and higher costs of opening new arcades. Their total profits fell down fifty-one percent.

However not is all bad for the company that once gave Nintendo a run for their money. Sega stated that their unit sales of video games were much higher then they had anticipated.

Sega's group net profit was 932 million Yen for the first quarter of the fiscal year, compared with 1.89 billion Yen last year. Sales also dropped 1.4 per cent to 41.8 billion Yen.

Sega remain optimistic however, they expect sales to reach 8.00 billion yen by the end of the fiscal year in March. They also expect revenues to rise to 204 billion Yen, up 6.7 per cent.

Around forty percent of Sega's profits came from America, despite the cost of games going down by around twenty-five percent. Total unit sales reached 1.57 million in April-June, above Sega's forecast of 1.28 million.