Sega Sammy's game business weighing down earnings

Publisher treading water as booming slot machine business offsets poor home gaming numbers due to weakness in the West.

It's not that Sega Sammy is doing especially poorly, per se. It's more that the Japanese company continues to struggle in the Western market.

Sonic did his part, but Sega didn't have much else.

Today, Sega Sammy issued its April-December 2011 earnings, reporting revenues of ¥312 billion ($4.07 billion), down .5 percent from the same period in 2010. Profit also gave up some of its massive gains from the year-ago period, falling 6 percent to ¥34.384 billion ($449 million).

Sega Sammy's slot-machine business in Japan continues to be the company's moneymaker, as the segment posts an operating profit of ¥67.495 billion ($881 million) on revenues of ¥177.716 billion ($2.32 billion). The consumer business, of which console, handheld, mobile, and social games are party, is Sega Sammy's second-largest segment and did not fare so well.

Net sales for its home-gaming segment fell 4.9 percent year-over-year to ¥64.101 billion ($837 million). The segment also reversed last year's modest operating profit, posting a ¥5.51 billion ($71.9 million) operating loss during the period.

Though Sega Sammy proffered no console unit-sales figures, the company said top releases during the period were Mario & Sonic at the London 2012 Olympic Games and Sonic Generations. The company also said that it found significant success with its mobile title Kingdom Quest, which sold 2 million units.

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24 comments
robertwarnes91
robertwarnes91

@Richardthe3rd But they did make a new Shinobi just 2 months ago on the 3DS. As for Altered Beast, they tried a modern revival with a new PS2 entry which no one brought. This is a similar problem with Nintendo as well, every time Sega tries a new IP or something different no body buys it. Valkyria Chronicles was one of the most original and creative games I've seen in years. And guess what do so call Sega fans do? They boycott the sequel on the PSP, gave it a negative image and thus no one brought it. Same thing with Yakuza, they had to make cuts with no.3 to obviously increase the likehood of making a profit for what is a niche game. What do Sega fans? They boycott it. "Booo, no Hostess clubs? What is this poo?". Well guess what those hostess clubs and other copyrighted material have very expensive licensing and red tape. Fortunately Yakuza 3 did sell well enough.

digi-demon
digi-demon

Remake Blood Will Tell on 360 & PS3 with upgraded graphics...plz. Also release more arcade classic back catalog on PSN/XBL - Alien Syndrome, Galaxy Force, Power Drift, Sega Rally, Sega Rally2, Planet Harriers, Super Hang-On, HOTD, Virtua Racing, Virtua Cop Series, VF2.... get the picture?

ProMethUse
ProMethUse

SEGA's made some pretty good games recently although they've not been met with overwhelming support and anticipation like most games had (ex. Skyrim, CoD, BF, etc.). You could say that their games are cult hits. very good games with nice reviews but did not sell as well; much like "Beyond Good & Evil"

ZeroX91
ZeroX91

As long as PSO2 gets a worldwide release they will have a nice little cash cow.

gix47
gix47

you have to make stuff that peolpe want, if you would like to make money

vengefulwilberg
vengefulwilberg

@Gen007 I agree on that. If they bring back Streets of Rage I would praise sega for years. The graphics of 2D games are really great now. Look at King of Fighters 13. KOF 13 looks incredible. Even Shank is an impressive looking game. And enhancing the gameplay of Streets of Rage would be easy; especially if they enhance the game in way were you can do juggle combos like in Sengoku 3. As long as Sega doesn't go the 3D route with Streets of Rage it will be full of awesomeness.

Gen007
Gen007

make sonic adventure 3 or yeah a new streets of rage or any of the classic series they seem to have just abandoned. Better yet make a brand new IP. There are plenty of ways for them to get money and some of them are sure fire things so they really need to hop on that and abuse it just like every other company ion the gaming industry.

Batmantheorphan
Batmantheorphan

SEGA has made absolutely great games in the past year, like sonic generations: 8.0 renegade ops: 8.0 football manager 2012: 8.0 shinobi: 7.5 shogun 2: total war: 9.0 yakuza 4: 8.0 but in the end they were defeated by the hype, the hype tat games like COD, mario and battlefield had but sega hadn't. so sad...

Lhomity
Lhomity

Poor Sega. I would give an entire paycheck for a new Streets of Rage. With those traditional 2D settings in pretty HD, online 4-player co-op, a lengthy offline campaign, character customization and a robust level editor with a convenient method for sharing player-created levels. Worth every cent.

Richmaester6907
Richmaester6907

Its not like they aren't making profit its just they made slightly less than the year before, stop whining.

AuronAXE
AuronAXE

Games like Shenmue 3 and a Jet Set Radio 2 at this point could potentially cost Sega too much money. Sucks.

X-RS
X-RS

*sigh* I can say I've been very impressed with their publishers catalog this gen... I'd kill for a more definitive Space Harrier. Sin & Punishment 2 gave me those dreams.

LindBergh2007
LindBergh2007

Pr0ving4Gr0undz Can you name 10 people you know that brought Shenmue II?No? Then quit whinning. Complain to the people that ignored the franchise. Better yet, loan Yu Suzuki $150 million so he can make Shenmue 3. snxx. SEGA has several old IPs planned that they are giving the digital HD treatment. Will all of you please shut up? SEGA is making money, they just aren't on overseas software because of the biased idiocy of Nintendo fanboys(who's wet dream is for them to buy SEGA when in fact SEGASammy's net worth is only slightly less than Nintendo), and COD fanboys.

snxx
snxx

They could release a new Shinning Force, Phantasy Star V (yeah, not that online crap), a new Dragon Force, a new Panzer Dragoon RPG, a new Jet Grind Radio, a new Shenmue - they could even release a remake/reboot in those series, they choose instead to see their profits going down and down every year. It's sad, SEGA used to be my favourite developer and console maker.

Pr0ving4Gr0undz
Pr0ving4Gr0undz

Sega you guys are f'ed up for not finishing Shenmue, a book finishing the series would of made me happy but nooooooo. 10 years have passed since shenmue 2 and still no sign of a sequel. Reboot the Shenmue series, jet grind radio AND CRAZY TAXI!!!

leeko_link
leeko_link

Poor Sega, down from last years revenue and all they had to do was release Sonic CD and Sonic 4: Episode II for Wii and they could earn another extra million bucks but no they had to go core and make it only for systems I do not own.

TheArcade
TheArcade

I'm lazy I really need to get Sonic Generations. That game is good.

LindBergh2007
LindBergh2007

Pat_Dude. Sonic Demensions is a fanmade rumor. The idea and concept and name is all fake made up by Nintendo fanboys. SEGA is about to annouce some serious changes in its business structure. They are planning to become a multimedia and industrialized company. http://www.trademarkia.com/orbi-85517210.html SEGA's problem in the west is simple: People ignore their non Sonic IPs and take them for granted. They'd rather buy crap like Modern Warfare than something like Anarchy Reigns. This is why they are transitioning their entire 3rd party platform into digital and downloadable content only. SEGA will soon be involved in everything from gaming,electronics,food,clothing to manufacturing material for business and industrial factories and manufacturing as contractors.

Richardthe3rd
Richardthe3rd

Sega has a big IP library that they don't touch anymore. Streets of Rage, Altered Beasts, Shinobi, lots of names that I know a lot of gamers would like to see come back to the fore. The only reason I hesitate when I bring this up is their strong focus on making licensed games as of late, most of which are terrible. I don't want them to dip into their IP library if the games they draw from it will be as terrible as the movie spin-offs they've been making. Sega needs to have a come-to-Jesus moment, because they're quickly becoming irrelevant.

tmorri603
tmorri603

Sega needs to go back to what made them great in the 90's. Making great games that not only Japan loved but the west as well. They have some of the best IP's in gaming and do nothing with them. It is hard to believe that Sega was battling Nintendo for the best IP's in video games.

vengefulwilberg
vengefulwilberg

Sega will bounce back when they finally release Aliens Colonial Marines; which looks pretty epic. I just hate the fact that the game is delayed. Instead of coming out this spring it will be released in the fall this year. SUCKS! SUCKS! SUCKS!

Pat_Dude
Pat_Dude

Well this year's at least promising to have good games from Sega. Sonic 4 Ep II is going to be awesome, then we have the mysterious "Sonic Dimensions" supposedly in the works as a Wii U launch title. Sega's almost certainly working on something else Sonic-related if Dimensions isn't real.

Menalque2
Menalque2

I hope Sega don't overreact to this news since it sounds as if this is down to the strong yen and the current economic slump among Western consumers. The problem is sometimes they misunderstand where their strengths lie with Western gamers and consequently make horrible decisions. (again, this is not necessarily related) Valkyria Chronicles gained a considerable following in North America and became something of a runaway hit. What did they do with the sequel? Release it on a handheld system that nobody in Europe or America plays. The sales were predictably terrible. Then there is Shenmue City. A mobile game they decided to release to test the water' for releasing another full Shenmue game. Even though Shenmue I and II were more popular in the West, they released Shenmue City in Japan only. Great public relations all in all.

XanderZane
XanderZane

Well, at least they aren't laying anyone off during these tough times.SEGA needs to go back to their roots. Finish Shenmue for one. I would love to see a Phantasy Star Collectors edition for the Western market. I know they did one in Japan, but we didn't get it. I'm getting tired of the Sonic games though. The only game they are releasing in the future that might be good is Aliens: Colonial Marines and maybe Yakuza They have to do a lot better then that.