Sega Sammy Holdings, the Japanese operator of amusement centres, has cancelled a plan to spend ¥33bn (US$330m) on land to build a game complex in Yokohama after its earnings deteriorated.
Sega Sammy had planned to acquire 41,000sq.m in Yokohama, near Tokyo, for the complex. The company has already spent ¥22.6bn to buy part of the land. The expected cost for the entire project wasn’t disclosed. The company announced the decision in a statement filed to the Tokyo Stock Exchange.
Tokyo-based Sega Sammy, which also makes pachinko machines and other game equipment, posted a ¥15.8bn net loss in the nine months ended December 31, compared with a ¥49.4bn profit a year earlier.
The company last month reversed its forecast for a full-year profit to a ¥26bn net loss and announced it would cut 400 jobs.
