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Sega Sales Down, Profits Up Nine Months Into Fiscal Year

by Mike Futter on Feb 05, 2016 at 09:02 AM

Sega continues to readjust its corporate profile, as the mobile market, as well as the gambling in environment in Japan continue to change. The company posted reduced sales, but notes a turnaround in profits that should carry through to the end of the year.

For the nine months ending December 31, 2015, Sega is posting ¥245 billion ($2.08 billion) in sales, a dip of 8.5 percent. Profits, which were in the red at this time last year have recovered.

They currently sit at ¥6.5 billion ($55.3 million). That’s a marked improvement from the ¥2.8 billion ($23.5 million) loss at the end of calendar 2014.  

Sega anticipates a slight shortfall in sales at the end of the fiscal year. However, the company suggests that operating income, a key measure of efficiency, will drop by a staggering 42.8 percent.

Throughout Sega’s quarterly report, the company focuses largely on the Japanese market. Specifically, it addresses the growing competition in the mobile space and ongoing challenges in the pachinko and pachislot market.

Overseas operations aren’t addressed frequently. Also, Atlus, which continues to release popular titles across platforms and has an enormous game (Persona 5) due this year, goes without mention.

In the west, Sega has some upcoming games, with Valkyria Chronicles Remastered, Sonic Boom: Fire and Ice, Sonic and Mario Olympics titles, the recently announced 7th Dragon III Code localization, and Total War: Warhammer en route in 2016. Only the last of these even appears on Sega’s public list of upcoming games.

[Source: Sega]


Our Take
Sega’s digital entertainment (console, PC, and mobile) game division seems a bit unfocused. As you can see in the image above, there are confirmed titles simply missing from the official website’s list of upcoming games. It’s surprising that Sega doesn’t tout Atlus’ success a bit more, as the company continues to deliver varied and enjoyable offerings.