How much did the sammy side contribute to the losses?

i think they lost a bit from the wii, the major games didnt really deliver. However mario and sonic is coming this winter, and i think that most of their revenue(and profits) wil be focused on this game.

Sonic and Mario the olympic games sold over 7000000 copies

Madworld + House of the dead overkill + The Conduit sold less than 1000000 copies

Sega needs to rethink its tactics

None, they're mainly pachinko\pachislo distributor\operator. And this's highly profitable business in Japan, overall few times bigger than all japanese gaming (though heavily fragmented).

Sega on it's own account is doing fine, those're mid-term losses due to release schedule that has been shifted to the end of the year and R&D expenses. They're planning profit at FY2010 (seriosly, how this's possible to lose money on Mario & Sonic? :D ).

Well if they expect to make any money on it they should go PC/PS3/360.

Sega needs to make more games with Mario in it. Sonic & Mario at the Olympics has been Sega's only big hit?

My local Target marked down The Conduit to $35 (70% is the first stage of "clearance") this week.

Looks like re-orders and legs are not in the cards, if the local big retailers are any indication.

How can you get $640 million in revenue from shipping just 2.65 million games? That would mean $241 revenue from each game copy shipped lol.

Knowing that many of these 2.65 million games are cheaper DS games, they can get $25 tops from each copy shipped.

$25 x 2.65 mill = $66.25 million, which means that only 10% (!) of Sega's $640 million quarterly revenue comes from video games (the rest is vending machines?)!

Arcade Hardare
Royalties on Sonic (lots of other merchandise, cartoons, etc)
I'm sure other income from other investments as well.

Eitherway, if you read their financial statements I'm sure it would make sense.