Sega Game Sales 'Slightly Below Expectations' Despite Some 'Favourable' Performance

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Sega’s Entertainment Contents division, which houses its video game businesses, “exceeded expectations” in the first quarter of its fiscal year thanks to strong sales of full-length games and DLC.

As indicated on the company website Fiscal Report for the Quarter Ended June 30, 2024Net sales in the segment increased 34 percent to 72.5 billion yen ($496.6 million). Operating income rose to 11.8 billion yen ($80.8 million), up from 4.3 billion yen in the same period last year.

Full-game unit sales for the quarter totaled 5.8 million units, comprising 710,000 sales from new releases and 5.14 million sales from catalog titles. That's up from 4.87 million units sold in Q1 last year, but Sega said full-game sales were “slightly below expectations.”

Despite this, the company praised Shin Megami Tensei V Revenge for its “favorable” performance after the stock surpassed 500,000 sales in three days. Older stocks like Lord of the Unicorns AND Persona 5 Royal (Remaster) have made equally noteworthy contributions.

The Japanese publisher also praised the “strong” revenue from the Sonic film franchise.

Sega has acknowledged its Acquisition of Rovio in August 2023 has helped deliver positive results: recent results include sales and profits for the creator of Angry Birds.

“The increase in profit compared to the same period of the previous year was also due to the inclusion of Rovio Entertainment Corporation, which was acquired in August 2023,” Sega added. “Although the impact on profit from the amortization of goodwill and other intangible assets was insignificant, Rovio Entertainment Corporation contributed to the Group's profit with its profit after amortization.”

Looking to the future, Sega expects free-to-play releases such as Sonic rumble and catalog sales to establish a “strong base of performance” for the remainder of the fiscal year. It also expects upside from the release of new titles such as Sonic X Shadow Generations AND Metaphor: KingFantazio.

The company expects net sales of 335 billion yen and operating profit of 38 billion yen from its entertainment content business for the full year ended March 31, 2025.

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