Sega's revenues slide amidst restructuring
Games division makes an operating loss of ¥780 million as publisher reduces number of releases
Sega's games division was the source of less than a third of the company's total revenue in the first-half of FY12.
In the period ending September 30 2012, Sega's consumer business generated revenues of ¥35.7 billion ($445/£276m/€346m), an increase of 5.6 per cent over the same period last year. Despite the rise in sales, the division made an operating loss of ¥780 million ($9.7m/£6m/€7.6m) - a significant improvement over the 6 billion loss the previous year.
Sega has drastically reduced the number of games it produces in an effort to restructure the business. As a result, it sold 2.7 million units in the first half of the financial year. In the digital space, Phantasy Star Online 2 reached 1 million registered users, and out-performed Sega's revenue estimates.
Revenues for the entire company were down 10 per cent year-on-year to ¥136.6 billion ($1.7b/£1.1b/€1.3b), but cost-cutting measures led to a 2.7 per cent increase in profits to ¥3.9 billion ($48m/£30m/€27m).
6 billion yen loss in one year from the game division. That's about 75 million dollars. Not an industry record, but still impressive.
Obviously Sega have fixed the problem.
It would be nice to see this iconic gaming brand make the most of their storehouse of IP right across the platform diversity that we now enjoy. The potential is massive.
Posted:6 months ago