Sega Sees 20% Surge in Annual Sales, Driven by Persona and Like a Dragon Success

Sega Sammy has unveiled its financial report for the fiscal year ending March 31, 2023, showcasing robust performance across multiple areas. Key highlights include: - Net sales: ¥468 billion ($3 billion), representing a 20% year-over-year increase - Operating income: ¥56.8 billion ($365 million), marking a 22% year-over-year rise - Profit: ¥33.1 billion ($212 million), a 28% year-over-year decline Sega attributes its sales growth to the mid-year acquisition of Rovio and a strong showing in the Japanese and Asian consumer market, complemented by notable performances in its home gaming business. The decline in profitability is partly attributed to the costs associated with European restructuring, which involved significant layoffs and was announced towards the end of the fiscal year. Although the entertainment contents division, encompassing the home gaming business, experienced a slow start to the fiscal year, a strong fourth quarter propelled full-year sales up 12% to ¥318 billion ($2.04 billion). Notably, January's Like a Dragon: Infinite Wealth and February's Persona 3 Reload both achieved 1 million copies sold within a week of launch, reaching this milestone faster than any previous title in their respective series. These games significantly boosted their franchises within Sega, with the Persona franchise selling 5.06 million copies over the year (a 55% year-over-year increase) and Like a Dragon games, including the Judgment series, selling 5.36 million copies (an 89% year-over-year increase). As a result, the gap between these franchises and Sega's flagship Sonic franchise narrowed, with Sonic sales declining 27% to 5.92 million copies. In the preceding two years, Sonic series sales were at least double those of the Persona or Like a Dragon series. Looking ahead, Sega forecasts a 5% decline in sales and a nearly 21% decrease in operating income for the current fiscal year, while anticipating an 18% increase in profits. The company expects its entertainment contents division to see a 5% year-over-year sales increase, offset by a 21% decline in its Pachislot business and the sale of its Seagaia resort to US-based Fortress Investment Group.