Sega's Revenue Declines 8% to $2.1 Billion

Sega Sammy has released its financial results for the nine-month period ending December 31, 2024, which saw the cancellation of Football Manager 2025. The decision to cancel the game was made due to difficulties in meeting the expected product quality by the planned March release date. Overall, Sega experienced a decline in net sales and profit, but its Entertainment Contents division saw an 88% increase in profit, partly attributed to the success of Sonic the Hedgehog 3. Key figures for the period include net sales of ¥322.3 billion ($2.1 billion), down 8.1% year-on-year, and operating income of ¥43.7 billion ($287.9 million), down 20.8% year-on-year. The company's decline in net sales and operating income was partly due to the sale of Amplitude Studios in November 2024, resulting in a loss of approximately ¥6.1 billion ($40 million). However, the Entertainment Contents segment performed strongly, with net sales up 8.2% to ¥238.6 billion ($1.5 billion) and profits rising 88% to ¥37.5 billion ($246.9 million). The company saw successful launches of Metaphor: ReFantazio and Sonic X Shadow Generations, with the latter surpassing two million units in global cumulative sales. The cancellation of Football Manager 2025 resulted in a loss associated with a write-down of inventory assets, but development assets will be used in its sequel. Sega's animation division also saw success with the release of Sonic the Hedgehog 3, which grossed $460 million worldwide, making it the second-highest-grossing video game film of all time. As a result, Sega has revised its forecast for the Entertainment Contents segment, with net sales expected to be ¥320 billion ($2.1 billion) for the financial year.