Sega Sammy Holdings Inc., a Japanese operator of amusement centers, canceled a plan to spend 33 billion yen ($330 million) on land to build a game complex in Yokohama after its earnings deteriorated.
Sega Sammy had planned to acquire 41,000 square meters (10 acres) in Yokohama, near Tokyo, for the complex. The company has already spent 22.6 billion yen to buy part of the land. The expected cost for the entire project wasn't disclosed.
The company announced the decision today in a statement filed to the Tokyo Stock Exchange. It's now assessing the impact of the cancellation on its earnings for the year ending this month.
Tokyo-based Sega Sammy, which also makes pachinko machines and other game equipment, posted a 15.8 billion yen net loss in the nine months ended Dec. 31, compared with a 49.4 billion yen profit a year earlier. The company last month reversed its forecast for a full-year profit to a 26 billion yen net loss and announced it would cut 400 jobs.