Sega Sees Revenue Increase to $2.7 Billion

Sega Sammy has unveiled its financial results for the nine-month period concluding on December 31, 2023, revealing a surge in overall revenue and profit, albeit with a downturn in sales of new game titles. The decline in the video game segment was mitigated by growth in the pachislot and pachinko machines sector, prompting the company to adjust its sales projections for the current fiscal year. Key financial highlights include: Net sales of ¥349.9 billion ($2.3 billion), representing a 28.7% year-over-year increase; Operating income of ¥54.4 billion ($364 million), marking a 42.4% year-over-year rise; and Ordinary income of ¥57.2 billion ($383 million), up 42.7% year-over-year. The company's pachislot and pachinko machines business drove the overall revenue and profit growth, with net sales soaring 130.3% to ¥120.2 billion ($805 million) and ordinary income surging 521.3% to ¥45.7 billion ($306 million). In contrast, the Entertainment Contents segment, encompassing video games, saw net sales rise 4.2% to ¥219.3 billion ($1.4 billion), largely attributed to the acquisition of Rovio in August. However, the segment's profit plummeted 52.5% to ¥19.7 billion ($131.8 million) due to weak sales of new game titles, including Sonic Superstars, Like A Dragon Gaiden: The Man Who Erased His Name, and Persona 5 Tactica. Consequently, Sega has revised its forecast for the Entertainment Contents segment, lowering net sales projections from ¥327 billion ($2.1 billion) to ¥313 billion ($2 billion). The consumer division of Entertainment Contents reported net sales of ¥148.1 billion ($991 million) and operating income of ¥13.9 billion ($93 million). New game sales for the period totaled 5.2 million units, down from 6.9 million in the previous year, while catalogue title sales reached 13.8 million units, up from 13.7 million. Full game sales totaled 19.1 million units, a decline from 20.7 million. Looking ahead, Sega Sammy has revised its forecast for the fiscal year, adjusting net sales from ¥474 billion ($3.1 billion) to ¥463 billion ($3 billion) and operating income from ¥60 billion ($401 million) to ¥51 billion ($341 million).