The Japanese economy was looking up for Sega Sammy early in its fiscal year, but the second half was hit by uncertainty because of the sub-prime loan crisis and increases in fuel and food prices in the U.S.

Sega said the uncertainty led to a period of "major transition" for the pachislot and pachinko industry, Sega Sammy"s key market. Net sales in the segment were down 31.5 percent to 146.5 billion yen (mmoabc.4 billion) for the year.

Overall sales for the Japan-based firm were 469 billion yen, a fall of 13 percent for the year ended March 31.

Operating loss for the company across all segments was 5.8 billion yen, while net loss was 52.5 billion yen.

Sales in Sega Sammy"s consumer segment (videogame software and toy sales) were 142.3 billion yen, up 18.7 percent year-on-year, but the segment posted an operating loss of 6 billion yen.

Total software unit sales were 27 million copies for the year, up 5.7 million copies year-on-year, driven by Mario & Sonic at the Olympic Games.

Japan sales were down, but the latest title in the Ryu Ga Gotoku series (Yakuza in the U.S.), Ryu Ga Gotoku Kenzan!, achieved "a measure of popularity" in the region.

Sega Sammy expects current fiscal year sales of 470 billion yen, an increase of 2.4 percent year-on-year, consolidated operating income of 15 billion yen and net income of 5 billion yen.

"The business in the European and North American consumer markets is expected to show healthy growth again in the current fiscal year," Sega stated.