TECHNOLOGY - Feb. 19, 1994

Sega Forecasts Profit Decline: Sega Enterprises, the aggressive Japanese video game maker that eclipsed archrival Nintendo Co. in the U.S. market last year, forecast its first drop in profits in 12 years. It cited the soaring yen, the recession in Europe and intensified competition in its home market. Those factors, combined spwith heavy spending to develop theme parks, advanced computer game machines and electronic toys, will probably cause its earnings in the fiscal year ending March 31 to fall to $408 millio9n, off nearly 23% from $529 million last year. It had previously forecast profits of $552 million.