Sega Sammy brushes off slow Iron Man 2, Alpha Protocol sales

Publisher's revenues see 51 percent spike as it posts first-quarter profits on strength of pachinko business; Armored Avenger's latest tops 1.1 million sold.

In May, Sega Sammy posted a full-year profit for the first time in four years. The parent company of game publisher Sega continued its turnaround today, posting a net profit for the first financial quarter amid soaring revenues.

Iron Man 2 didn't exactly use its Repulsor Beams on customers, but sales were slower than Sega had hoped.

For the three months ended June 30, Sega Sammy revenues were up 51 percent year-over-year to ¥91.3 billion ($1.1 billion). The bottom line improved as well, as the company turned the previous first quarter's ¥10.3 billion ($119 million) net loss into a profit of just over ¥7 billion ($81 million). While the company is best known in the West for its home video games, most of the gains were attributable to its thriving pachinko and pachislot business, which more than doubled revenues year-over-year to post sales of ¥48.9 billion ($566 million).

As for games, Sega sold ¥10.6 billion ($123 million) in software for the quarter, up 27 percent year-over-year. However, its two biggest new releases--Iron Man 2 and Alpha Protocol--were deemed slow sellers by the publisher. Iron Man 2 sold 1.12 million copies in the US and Europe, while Alpha Protocol managed 700,000 in the same regions. Despite "generally weak" demand in the two continents, the gaming business improved its performance, posting an operating loss of ¥600 million ($7 million), considerably better than the ¥4.5 billion ($52 million) loss it posted the previous first quarter.

The publisher summed up its gaming woes, saying it "needs to adapt to [a] changing business environment in which the market demand for new content geared to social networking service and smartphone is expanding."

Sega Sammy also upgraded its full-year financial expectations. The publisher now expects to post ¥205 billion ($2.37 billion) in sales, up nearly 8 percent from its previous projection. Sega Sammy also revised its full-year estimate of net income to ¥17 billion ($197 million), more than triple the company's previously issued projection.

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Discussion

169 comments
TerrorRizzing
TerrorRizzing

I dont see how those sales are weak, unless they had their expectations way too high.

tremor33
tremor33

Hey SEGA, use the Iron Man IP to build a game completely independent of a movie tie in. Make the Iron Man version of Arkham Asylum. Call it Stark's Mansion. idc. Just quit with the crappy games cuz you're getting none of my money until you do

tommy_boy9999
tommy_boy9999

Quit Complaining about a bad movie tie in game. Go play these instead Resonance of Fate Sonic All star Racers Madworld Bayonetta The Conduit Valkyrie Chronicles Infinite Space Phantasy Star Zero

digi-demon
digi-demon

With such a huge and rich back catalog of Arcade and console history why the hell is SEGA following a 'Lemming-like' publisher route and continuing shipping licenced sh*t like 'Iron Man The Movie'. Just remake your classics like you did with Outrun SP & Afterburner Climax and stick-em on Live etc. SEGA = CLA$$IC$

Zloth2
Zloth2

"... the market demand for new content geared to social networking service and smartphone is expanding." Translation: We can't hack it. We're going to try making simple games and hope they catch on with the Facebook/i-Phone crowd.

Richmaester6907
Richmaester6907

Iron man 2 rubbish game but awesome GS to be harvested from it :D

VegaThePunishr
VegaThePunishr

I feel sorry for the 1 million who purchased Iron Man 2. The game lack serious production quality and it's unfortunate for such a great character like IM. The game could have been really cool. And we have more similiar crappy movie-tie-in games next year with Captain America and Thor. Both from SEGA. If they want to be serious players in the game publishing industry, they must work on the quality and value of their games. Otherwise, they should just release them on a different price point. Like $39.99 or $29.99. To pay $60 for IM2 should be a crime.

diggyman
diggyman

Movie games = profit, not quality. Movie games are designed to capitalize off of the hype of the movie it's connected with. Developers spend no more that 12 months on the game. It's the moms and dads and the hype-fueled kids of the world that get suckered into buying them. They make $$$ with little effort. Taking money from idiots. simple.

diggyman
diggyman

lets hope they turn that $$$ into 8-10 scored games.

wonzan
wonzan

Just goes to show that there are 1.1 million people that are willing to buy travesties of gaming (Iron man). This is why companies cater to the casual crowd.

SuperMegaMaster
SuperMegaMaster

[This message was deleted at the request of a moderator or administrator]

TheGreyArea
TheGreyArea

@Gooeykat apologies, you're absolutely right

Gooeykat
Gooeykat

@TheGreyArea Sheesh, does EA take the blame for everything negative in the gaming world. Sega published AP, not EA.

Microwin
Microwin

damn Sega... can I have at least $1 million? is not like you're going to miss it. It would make my life so much better.

TheGreyArea
TheGreyArea

I do-not enjoy posting negative rants, but I must express how surprised and disappointed I was at the finished version of Alpha Protocol. Especially following *EDIT: Sega's decision to push back it's release for a better market position. It's such a waste that the time was not used to tweak the game further.

benbonney
benbonney

I must say that Alpha Protocol, Iron man 2 were the first games to go in the summer sale in Britain, Alien vs Predator was in a week after its release, and even bayonetta was in (Amazing game). So even though Sega have turned a profit a lot of games shops are loosing out, and its generally down to poor games, or in Bayonettas case it was poor advertising in UK.

feryl06
feryl06

The publisher summed up its gaming woes, saying it "needs to adapt to [a] changing business environment in which the market demand for new content geared to social networking service and smartphone is expanding." NO---You just need to make better games.

ChemicalsBoy
ChemicalsBoy

*The publisher summed up its gaming woes, saying it "needs to adapt to [a] changing business environment in which the market demand for new content geared to social networking service and smartphone is expanding." No... you don't need to make a console version of Farmville... you need to make games that don't suck.

Toysoldier34
Toysoldier34

You can't release a game figuring that consumers will find it more fun than you do. If there's things you don't like then consumers will like it even less.

hellpolice
hellpolice

And by the way Bayonetta, and MadWorld were just awesome among other games...sega is focusing again!

hellpolice
hellpolice

I predicted two years ago that SEGA might come back by the next console "war" I hope it becomes true so we can have another great console from them!

ccmaster86
ccmaster86

I still have a SegaCDX and I play it everyday! Give it time, Sega will become a major player again. EA was the king just a few years ago, they started to crash and saw the light and are now not worried about size, just quality, and it shows. Sega will see the light as well, the quality is returning in games like Bayonetta, Mad World, After Burner:Climax, Infinite Space (I liked it!) and possibly a return to the Sonic we love. I have faith!

luc11044
luc11044

Despite its so-so reviews, I'm really enjoying playing Alpha Protocol.

GameBeaten
GameBeaten

I still need to pick up one of Sega's good games. Namely, MadWorld.

UnknownElement4
UnknownElement4

I am a bit surprised that Iron Man 2 sold more than 1+ million copies.

steveguttenberg
steveguttenberg

It's funny that they have access to all these great franchises (Streets of Rage, Golden Axe, Shinobi, Vectorman, etc.) and all they can do is hire incompetent developers to do the exact opposite of what fans want. Golden Axe without multiplayer? Who did they think would like that?

deus57
deus57

I need SHENMUE 3, on my DREAMCAS 2

maaly81
maaly81

did parents buy ironman 2 for their kids or something? I dont believe they sold over 1,000 copies of that game...

BasilVZero
BasilVZero

Make a 3D Guilty Gear that wont be as bad as King of Fighters whatever it was called but as good as SFIV~

glimpus
glimpus

Look, if you want sales for movie games to improve, then make the games BETTER. Take the necessary time in development to do so, or else people will stop buying them. The last good movie games IMO were Return of the King and Spiderman 2.

glimpus
glimpus

We are wary of movie games. Very wary.

Newsboys11
Newsboys11

The 2nd iron man is terrible in my opinion

blazejpietras
blazejpietras

Iron man 1 did look bad but it wasnt it was a bit entertaining (my opinion)

somuchwonder
somuchwonder

the only good games from sega are the ones made by platinum games. those guys are genius

dovberg
dovberg

we are going to have a very sonic packed year too. Ep4, Color, Adventure, Kinect, I know there's more. I kinda wish that sonic team would go back to making PSO games though.

xbox360555
xbox360555

well i wouldnt want to say all of sonic games where ruined by sega. sonic adventure 1 and 2 where great on the gamecube and dreamcast (and PCish)

xbox360555
xbox360555

i figured iron man would sell slow. the first one sucked, second looked cool until i started playing it, then it sucked. plus i walked into a gamestop and seen it for a real low price.

Timstuff
Timstuff

Here's an idea, Sega-- make good games, and people will buy them!

TheClown24
TheClown24

1 million sales for Iron Man 2? wow people are actually stupid enough to buy that crap?

thumbsdown01x
thumbsdown01x

By the way, if Sega brings back Shenmue, it may just be another franchise they ruined. You all have good memories of Vectorman and Shenmue, right? Kindly ask Sega to stay away from your Jet Set Radios, so you can atleast appreciate the memories.

thumbsdown01x
thumbsdown01x

Sega disgusts me. I can't believe this company actually used to be decent. Ruining SONIC THE HEDGHOG games isn't enough for this crappy excuse for a company? NO, they need to ruin Marvel as well. Marvel, do the smart thing and DROP Sega and find another publisher. Sega has gotten consistently worst from 1997 to present. What does Sega have to say for themselves? "we need to adapt... market demand for new content." No Sega, Market demands GOOD GAMES. Most games Sega create now that is worth mentioning is utter-trash. What happened? Is Sega now run by different people? However, while Sonic may be trapped with this cruddy excuse for a game-developer, MARVEL can simply ban Sega from publishing any further products containing their characters. No, don't ruin Marvel Sega. They did nothing wrong.

OFC5000
OFC5000

This game completely sucked!!!!!! Nothing else to say.

Morphine_OD
Morphine_OD

@2bitSmOkEy probably you haven't heard of their great games. the most rediculous part is when they always begin to be pushed by a publisher and have to release a half-baked game

razgriz_101
razgriz_101

alpha protocol was a good game despite its flaws which could have been easily ironed out :P but i heard sega postponed release and didnt let obsadian tune it in the 6 month delay *shrugs*