SEGA has made a profit- and against the haters

SEGA.

This is after they acquired Atlus.

The sales performance of its games business remained a dilemma; revenue across Sega’s games business was flat or in decline. ANY SURPRISE HERE?! Did anybody think that SEGA was doing well this wise. Corporate heads cutting costs are pretty big for SEGA now as is every business. Jobs were cuts and structural changes were made. The cuts were made worse as can be seen in Gameindustry.biz

The fiscal year ended March 31, 2016. Sega’s Entertainment Contents business covers arcade machines, animated films and toys in addition to games – made an operating profit of ¥3.7 billion/$33.4 million / €30 million,. However, despite the turnaround. The revenue was stagnant, falling by 0.5 per cent to ¥199.7 billion/$1.8 billion / €1.6 billion. However, it was a really big MAJOR improvement over really shitty and awful the ¥63 million/$579,000 / €510,000 it earned in the previous fiscal. Together, Sega’s Digital and Packaged Games revenue represented half of that ¥199.7 billion total. Digital Games earned ¥53.9 billion /$495 million / €436 million, down 2 per cent year-on-year, while Packaged Games revenue fell by 11 per cent to ¥42.3 billion/$389 million / €342 million. In terms of Packaged Games, the downward trend in revenue is reflected in an even steeper decline in unit sales. For the fiscal year ended in Match 2015, Sega sold 12.28 million units of software, but that declined 25 per cent to 9.22 million units last year. The improvement in operating profit, the company said, was down to a reduction in costs due to its smaller portfolio of released titles. The actual number of people playing Sega’s games increased for both its Domestic titles and those in its Noah Pass cross-promotional network. Domestic games attracted a 7.7 million MAU average in fiscal Q4, up more than 40 per cent year-on-year. However, the average revenue each user declined 15 per cent over the same period.

Keep in mind though, SEGA released a lot of promotional free SEGA games. I don’t mind the free games. The mods have helped the company brand-wise.

From SEGA,

“The standout packaged game was Football Manager 2016, a relatively niche franchise by most measures, and one that played second fiddle to Alien: Isolation the year before”

That’s quite a surprise- but again, I don’t recall how good or new SEGA’s games were this year. The fact that Football Manager 2016 was the highlight was a bad sign. Sorta like how the Saturn never released a Saturn exclusive Sonic.

Sega’s company-wide revenue slipped 5 per cent to ¥348 billion/$3.2 billion / €2.8 billion, but still managed to turn last year’s ¥11.4 billion loss/$105 million / €92 million) into a ¥5.4 billion profit/$50 million / €44 million.

Sega’s expected to do well this year though. In addition to a new Football Manager game, (YAY?!) it will also launch Persona 5 from the recently formalized Atlus and Yakuza 6 in all markets.

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One thought on “SEGA has made a profit- and against the haters

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