Sega Posts $31.6 Million Net Loss, Cancels $1 Billion Super Game Push
Updated
Updated · GamesIndustry.biz · May 12
Sega Posts $31.6 Million Net Loss, Cancels $1 Billion Super Game Push
3 articles · Updated · GamesIndustry.biz · May 12
¥5.7 billion ($31.6 million) in net loss for the year ended March 31 marked Sega’s reversal, even as net sales rose 13.6% to ¥487.5 billion.
A $200 million Rovio impairment, additional Stakelogic write-downs, and weaker-than-expected business development and game performance drove the miss; entertainment operating income fell to ¥32.4 billion from ¥40.8 billion.
Full-game sales dropped 12% to ¥67.2 billion despite releases including Sonic Racing: CrossWorlds and Football Manager 26, while free-to-play revenue rose 14% to ¥53.7 billion but Sonic Rumble Party underperformed.
Sega scrapped its long-planned online AAA 'Super Game' project with no extra cancellation cost and reassigned more than 100 developers from free-to-play work to full-game development around core IP.
For FY27, Sega expects sales to climb 4.6% to ¥510 billion but operating income to slip 5.6% to ¥44.5 billion as it leans on flagship releases, stronger promotion, and transmedia expansion for Sonic and Angry Birds.
After its 'Super Game' failure, can Sega's data-driven approach revive classic games without losing their creative soul?
Sega lost nearly $200 million on Rovio. Is reviving old IPs enough to solve its massive new acquisition problem?