Sega has released its financial results for the three months ended June 30, 2024, showing an overall decline in net sales but a solid performance from its video game business.
The publisher generated ¥15.1 billion ($102.5 million) from sales of full games, up nearly 40% compared to the same period last year. The Entertainment Content division, which encompasses video games, toys and animation, saw sales rise 34% to ¥72.7 billion ($493.3 million).
The numbers
Net sales: ¥104.7 billion (US$710.5 million, down 3.2% year-on-year)
Net sales of entertainment content: ¥72.7 billion (US$493.3 million, up 34%)
The interesting aspects
Sega Sammy’s net sales and overall profits fell compared to the previous year, with the company attributing this to the comparison with the release of Smart Pachislot Hokuto No Ken in the same period last year. In fact, the pachislot and pachinko division saw net sales fall 43% compared to the previous year, to ¥28.8 billion (USD 195.8 million).
However, entertainment content saw both sales and profits rise year-over-year, with Sega Sammy reporting that the segment actually beat expectations thanks to strong sales of DLC for its games and the positive impact of the exchange rate.
Full game sales were up compared to the previous year, but “slightly below expectations”, with 5.9 million games sold. Of these, 710,000 were new releases and 500,000 units accounted for Shin Megami Tensei V Vengeance, highlighted as a key best-seller during the period.
Sales of new games generated ¥3.9 billion ($26.5 million) while back catalogue games generated ¥11.2 billion ($76 million). Sega also reported “favorable performance” for Unicorn Overlord and the Persona 5 Royal remaster.
The rise in gaming profits is also due to the addition of Rovio. Sega completed the acquisition of the Angry Birds developer in August 2023, after acquiring the company in a deal worth €706 million.
Elsewhere in the entertainment content space, Sega reports strong revenue related to the Sonic The Hedgehog films.
Sega is expecting a strong performance from Entertainment Contents for the remainder of the fiscal year, thanks to the upcoming releases of Sonic X Shadow Generations, the free-to-play spin-off Sonic Rumble and Atlus’ new IP Metaphor: ReFantazio, as well as the arrival of the third Sonic The Hedgehog film on December 20, 2024.
The company also provided an update on its medium-term management plan announced in May, when Sega Sammy created its new Gaming Business to handle casino and gambling products.
Two acquisitions have already been made with this goal in mind: in November, Sega Sammy bought US firm GAN Limited (which runs a B2B platform for casino operators) and last month it announced it will acquire Netherlands-based Stakelogic, which develops B2B iGaming content.