Slow pachinko/packaged sales lower Sega profits

Sega Sammy Holdings

Sega Sammy Holdings reported operating income up 103 per cent year-on-year at 38.5 billion JPY (US$379 million) on net revenue of 378 billion JPY (US$3.7 billion), also up 17.6 per cent from the previous year, with net profit dropping by 8 per cent year-on-year to 30.7 billion JPY (US$302 million) for the fiscal year ending 31 March.

Declining pachinko and pachislot gambling machine earnings contributed to the lower than originally estimated results, according to the company.



Sega also recorded game revenues up 18.6 per cent year-on-year to 99.8 billion (US$982 million), with rising digital earnings and falling physical game sales.

Total War: Rome II shipped 1.13 million units, Football Manager 2014 sold 790,000 copies, Sonic: Lost World sold 710,000 units, Company of Heroes 2 had sales of 680,000 copies, and the recently released PS3/PS4 title Yakuza Restoration shipped 390,000 units in Japan. The publisher also reported strong performance for the PC/PS Vita MMO Phantasy Star Online 2 in Japan, as well as smartphone titles Puyo Puyo!! Quest and Chain Chronicle.

For the current fiscal year Sega forecasts a 32 per cent fall in operating income and 9 per cent lower net profits, with a continuing slowdown in Sammy’s pachinko earnings due to consumer spending uncertainty, as well as lower packaged game earnings as the market shifts to digital sales.