So they make profit or what?

Sorry to disagree but "Sales Units" = sold units for reporting purposes, there isn't an underlying meaning that means shipped when it comes to financial reporting.  No publisher consigns their inventory to retail, they sell to retail, I don't give a crap how many copies are in gamers hands and neither do publishers, they only care how many units sold TO retail  and thats whats reported on financial statements.

But the game hasn't sold 1.1 million copies. The game has shipped 1.1 million copies. A huge difference, and it's delusional to think that publishers don't care how their games sell at retail.

Joystiq's just retarded.  On the report itself it even says the Bayonetta figures are for Japan, America and Europe!

Just so you know, VGC tracks sellthrough, not shipped figures. You may not give a crap, and the financial reports may not give a crap, but there is a big distinction between the two, and it is possible that both Sega's financial numbers and VGC's sellthrough numbers are entirely correct.

One last point, I've been led to believe that publisher deals with retailers often do include clauses that reduce the publisher's income if the game doesn't sell through at full price. So if half of Bayonetta's shipment needs a $30 price cut to sell to consumers, Sega will see less money than if the whole shipment had cleared at full price.

Yes. Pretty unusual for Sega to profit.

Last time they made a profit for the year was 2007... Its the stupid Pachinko/amusement park division that drags them down all the time.

Arcade division made more of a profit too, but that's not unusal.  What's surprising is the consumer games business being in the black.

Sammy side isn't doing too hot though...

http://www.gamasutra.com/view/news/27123/Sega_Sees_Profits_On_Declining_Sales_Bayonetta_Sells_11_Million_Units.php

Sales in Sega's pachislot and pachinko business were up 17.7 percent to ¥125.86 billion ($1.4 billion); operating income was up 409.2 percent to ¥26.95 billion ($301.58 million) thanks to lowered costs and brisk sales.

http://flashydubai.com/middle-east%E2%80%99s-largest-sega-republic-to-open-at-the-dubai-mall/

They prolly made some oil money off their middle eastern adventure too..

In addition to VGChartz, both Media Create and Famitsu have Bayonetta sold under 300K (PS3 &360) in Japan.

Other than Sega is lying or VGC/MC/Famitus are all wrong, there is certainly a third possibility which is that the number is interpreted wrong. It's clear in the PDF that the 1.1 million is for US, Europe and Japan.