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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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Matthew Handrahan avatar
Matthew Handrahan: Matthew Handrahan joined GamesIndustry in 2011, bringing long-form feature-writing experience to the team as well as a deep understanding of the video game development business. He previously spent more than five years at award-winning magazine gamesTM.
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