SEGA has adjusted its fiscal predictions for the year ending March, 2016.

The company’s net sales target has now been lowered by ¥65 billion from ¥420 billion to ¥355 billion.

In a letter to investors, SEGA points to its Pachislot and Pachinko machines, and Entertainment Contents as the main reasons for the changes. Of the ¥65 billion reduction, SEGA’s Pachislot and Pachinko Machine business takes up the largest chunk at ¥34 billion, while the Entertainment side makes up ¥29.5 billion.

On the video game front, SEGA says the reduction is, in part, due to a delayed release schedule and the commitment to create “higher-quality content.”

"Regarding the digital game software field of the Entertainment Contents Business, competition in the Japanese market is intensifying,” says SEGA. “Therefore, higher-quality content is expected, thus resulting in a trend of longer development lead times.

“The Company also has titles whose launches were postponed from the initial schedule and titles that did not fulfill our expectations in terms of market reception.”

Back in July, SEGA reported a decrease of 42 percent in net sales, and earlier, in January, plans to downsize its US arm.