Sega's game profits rose 30% last year

Japanese publisher delivered increased operating profit despite launching fewer games than expected

Operating profit rose 30 per cent in Sega's games business in the last fiscal year, despite the company launching fewer titles than it had originally planned.

In the year ended March 31 2018, Sega's Entertainment Contents division earned 208 billion ($1.9 billion) in revenue, essentially flat over the prior year. Operating profit was up 33 per cent to 14.8 billion ($135 million) year-on-year.

In the previous fiscal year, Sega's revenue from Packaged Games and Digital Games was equal, with 47 billion from each product category. However, Packaged Games surged ahead in the year ended in March, earning 57 billion ($522 million) in revenue compared to 38.5 billion ($352 million) from Digital Games.

Sega's financial documents mentioned several Packaged Games as key releases for the year, including Sonic Mania and Sonic Forces. It also noted that Persona 5, which launched outside of Japan during the fiscal year, has now sold more than two million units.

However, across both Packaged and Digital categories, Sega noted that, "the number of new titles launched was lower than the initial estimate."

Overall, Sega Sammy earned 324 billion ($2.9 billion) in revenue during the year, down 11.8 per cent. Net profit for the period was down 67.7 per cent to 8.9 billion ($81 million).

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Latest comments (1)

Collin Sparling Studying Communication in Digital Media, University of Washington10 months ago
Not surprising considering how much steam the Yakuza series has been picking up, among other things.
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