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Sega's games revenue in decline after nine months

By Matthew Handrahan

Sega's games revenue in decline after nine months

Fri 05 Feb 2016 9:01am GMT / 4:01am EST / 1:01am PST
FinancialInsights

Packaged Games revenue down 17 per cent, unit sales down 30 per cent

Sega returned to profit after nine-months of the fiscal year, though the performance of its video games business was far from inspiring.

Revenue across the entire company actually fell 8 per cent to 245 billion ($2.1 billion), but Sega nevertheless managed to turn the 2.7 billion loss it made at this point last year into a 6.4 billion profit ($55 million). Within the Entertainment Contents division, which covers all of Sega's game operations, revenue fell 3 per cent to 143 billion ($1.2 billion).

Digital Games contributed the most to that total: 39.3 billion, though that was also down 5 per cent year-on-year. Sega reported an increase in MAUs, from 5.51 million to 6.15 million, and a significant rise in downloads, from 199.7 million to 324.8 million.

Packaged Games showed a more pronounced decline, in both revenue and unit sales. Sega posted 28.9 billion in revenue from Packaged Games, down 17 per cent versus the previous year. Unit sales fell from 8.9 million to 6.12 million.

Between Digital and Packaged Games, Sega finished the nine-month period dead even. The former made a 0.5 billion loss, while the latter made the same amount of profit.

Sega has twice lowered its profit estimate for the fiscal year, the first time in September and the second in December.

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5 Comments

Alan Blighe Research Associate

28 77 2.8
Don't worry everyone, I'm sure the next Sonic game will be REALLY good. Honest.

Posted:3 months ago

#1

Morville O'Driscoll Blogger & Critic

1,976 2,267 1.1
Urghhhhhhhhhhhhh. :D

I always felt Sonic was a product of his time, like Bubsy, Zool and Earthworm Jim. :( Here's hoping Sega actually listen to people outside of the company, and focus on porting some of their non-Sonic back-catalogue to PC (Vanquish, the Atlus-developed games, etc), rather than focusing on trying to make Sonic relevant again, or porting their old arcade games. :/

Posted:3 months ago

#2

George Williams Owner

50 25 0.5
As someone who felt robbed after pre purchasing Rome 2, I can safely say that I won't be touching Warhammer Total War - and I am probably not the only one who feels this way, especially after announcing Chaos as pre purchase only DLC. One day, the big publishers will wake up and think 'you know what, its time to stop pissing gamers off'.

Posted:3 months ago

#3

Jordan Lund Columnist

95 224 2.4
Sega fans in the West have been begging for Phantasy Star Online 2, it seems almost criminal to not release it particularly when sales are low. But nope... In fact, they're releasing a brand new PS4 version... Yup, Japan only.

But hey, it's only been 4 years since the game came out...

Posted:3 months ago

#4

Greg Wilcox Creator, Destroy All Fanboys!

2,550 1,568 0.6
Sega has SO much IP they've been sleeping on that it's almost a crime that no one there has figured out that it WILL sell if it's done right. PSO 2 is a drop in the bucket compared to what would happen if some of those more forgotten titles fans have gone hoarse screaming about were to see the light of day again.

Edited 1 times. Last edit by Greg Wilcox on 8th February 2016 3:21am

Posted:3 months ago

#5

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