According to reports on several finance websites, Sega have returned to profit, but rival Nintendo's profits have taken a fall.

Sega announced that they had returned to being in profit, after five years of being in the red. The company are now said to be 3.05 billion Yen in profit, compared to a loss of some 17.8 billion Yen only a year ago.

The news came a week after Sega decided to scrap plans to merge with pachinko slot machines manufacturer Sammy, and a deal which was rumouted to be going ahead with Namco came to nothing. Hideki Sato, the president of Sega also stepped down to be replaced by their senior officer Hisao Oguchi.

Meanwile Nintendo say that their net profit fell nearly 37%, sighting the fall on lower than expected sales of hardware and software.

No doubt the recent announcements by Nintendo at E3, and their wishes to focus on more games will help boost their profits again during the next 12 months, and Sega's strong line-up are likely to result in their profits climbing further during the same period.

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