Sega doubles profits despite lower game sales

820,000 for a game without a lot of promotion is a very good number. Good on Vanquish and Platinum games.

Yes. Brilliant Idea. Sega should stop making Sonic games when Colors is one of years' biggest hits and should likely see steady sales as the year goes on. I think it could've sold a lot better, but it sold well enough considering how badly burned the public has been on the Sonic franchise. What Sega should do is stop making BAD Sonic games.

@bigcrusha YOU'RE NOT ALONE BUDDY- I really enjoyed Sonic adventure's story from the second and first one too... i bet sonic the hedgehog 06 was planned as adventure 3 but they had to rush and launch the game unfinished in so many ways- -Super Sonic -Speed chip -Day/Night system -Metal Sonic -Secret final level -Amigos having their own trial/mission sections staying from the main story -Super Hard Mode -Amigos playable in 2 player -Amigos playable in regular levels -Amigos having their own theme songs -Town as main hub for levels and missions -Online(I think) -Tails was supposed to have more gadgets -Sonic's infinite gauge(save for the Elise missions) don't belive? try finishing a level with one of the amigos(its not that hard cuz the game is very glitchy), they will do their own animation AND voice depending on the grade just like sonic/shadow/silver... i bet sonic 06 was planned as the best sonic ever ... I BET THEY WERE THINKIN JUST LIKE SQUARE-ENIX but Sega never gave them thoso precious 3-6 years in devloping games.... ooh well ...

this generation sega has released the most interestin japanesse games..even more than capcom & konami combine(two of the strongest 4 me last gen) . Vanquish, bayonetta, resonance of fate, valkyria crhonicles, phantasy star portable, yakuza 3, mad world.... and now that I look at the list. arguably even better jrpgs than square-enix. good job sega.

The article never says why the profits doubled despite game sales going downstream. I take it it's because of those pachinkos?

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): am I the only dude in the world that actually liked the story focused Sonic adventure titles?

the colours figures are across Wii and DS, not Wii on its own. the wii version has sold just under 700k, which is a shame, had it been released multiplatform it would have been a big win, especially considering its the best Sonic game in a decade hands down

1,85 million sonic colors for wii, I never realized that there are so many wii hard core gamers ...

VANQUISH is nice. It's funny I haven't played it much and game is put in my shelf, but it's put in the "to be continued" spot and lots of hours will be spent on this one:)

I remember when Sega decided to go as a third-party developer a decade ago, they said they will be a force to reckon with. Still waiting...

These comments are just flooding with awful advice. "Can I give Sega some free advice to start making more money. Stop making Sonic games." after the article specified that Sonic Colors was their top selling game for the year, and "Profits shouldn't be the major goal of every game company," doesn't make any sense at all. Few companies incorporate to lose money or make none at all. I can't even imagine the stockholders' meetings in which they don't focus on profits.

Sega just lost their footing and it seems that they think the issue is due to lack of money/sales. Honestly if they would take a step back for a moment, they'd see that they have lack of sales because they became so interested in getting the next game out there, that they forgot to realize that games need editing and take time to release. (which can be said about Sonic mostly.) And the other games they take time on aren't as famous as Sonic so they can't afford to not be taking the time do so much as edit if they want to make some kind of profit out of game making. It's a bad situation they put themselves in... :(

Yay for Vanquish getting good sales despite the weak marketing campaign. That game deserves its success.

Can I give Sega some free advice to start making more money. Stop making Sonic games.

"the demand was generally weak in the U.S. and European markets due to the headwind like sluggish personal consumption" but mostly because people hate our games. "The group needs to adapt to changing business environment " like making good games.

I think Sega should try and make it back in the production of consoles... i was a huge fan of the MegaDrive (Genesis)... i know they flopped on the release of the Dreamcast but they have the knowledge to do something great.. i think

Sega golden years are over.But there's always hope. Profits shouldn't be the major goal of every game company, although it's a complex matter.

I'm a Sega fanboy from back in the day, so i'm glad to see them doing well. That said, I'm still peeved that they are focusing more towards the (approaching oversaturated) mobile and facebook market in the future, that they neutered the export of Yakuza 3, and that they screwed up a great new IP in Valkyria Chronicles by releasing the sequels as PSP exclusives. For every great decision they make, there's three that make me scratch my head.

I think there should be a sociological study to find out just what in human nature causes people to buy, and then complain about, Sega's less-than-stellar games, and then barely acknowledge the existence of their great games.

SAAAYYYGGGAAAAAAAAh

I'm going to try to post one of the links to the SEGA Imagination Tech GPU deal now. Please bear with me since I'm using mobile: http://www.xboxic.com/news/6241 the soure on the link is russian so use google translator.

It's nice to see a good developer rewarded for good work. Sega has been making a serious turnaround in quality, and if these figures are any indication, they should be encouraged to keep on this path.

@Kellog. Yes I do. I can post the link on Monday since I don't have access to a normal internet connection I can also post links from euro game sites talking about ImageTech signing an exclusive deal with SEGA to design a GPU chip. GS mobile sucks!!! SEGA is releasing less boxed software because its hurting thier operating income. Publishing more titles that cost less to develop helps increase thier profit and revenue and lowers thier operating income. They will only publish mobile and social networking software next year. I've been talking to a former SEGA Skunkworks enigineer. From what he's told me SEGA has been trying to get back into the hardware market for quite sometime. Apparently are planning a new ga me system with thier next arcade board the SEGADRIVE codename "RT NEPTUNE" that will lower development cost of boxed software and use a single die GPU processor.

"The group needs to adapt to changing business environment in which the market demand for new content geared to social networking services [and] smartphone is expanding." ... OR they need to stop making rubbish games!

SEEEEEGGGAAAAAA!!!!!!!

Kudos to Vanquish!

@U_LOST_ME_87: Why would they want to do that? Look, I have a Dreamcast. I think it's a pity that things didn't work out. But I think the move to being a software-only developer was probably a good one. It allows them to make their games without undercutting their profits by having to sell hardware at a loss. This is to say nothing of getting into the market now. Frankly, given all of Sony's troubles, I wonder if Sony would not be better off doint the same thing. I wouldn't be thrilled with the market only being Microsoft and Nintendo, given the very different focus of the two. However, given Sony's IPs as well as all the trouble they have been having, I sometimes think that they'd be better off just as a software developer/publisher.

SEGA ! BRING BACK THE DREAMCAST GOD DAMMIT

Well, I helped out a little when they brought Shining Force, Shining Force 2, and Shining in the Darkness to Steam. I haven't spent $9 dollars that fast in a long time. If you want to make a quick $12 dollars Sega, then put out Phantasy Star 1-4 on Steam. Other then that I think the only Sega game I am looking at picking up is Shogun 2. Also, you might want to rethink your Dreamcast Collection. ~shiver~

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oneilgas@ WTF my friend send me a picture of that!

Vanquish was awesome, but I was able to play through it easily over a one day rental; I didn't really see the point in buying it. I'm assuming there were a lot of people like me.

Sega should buy Toe Jam & Earl rights, its a shame that Sega has so few exclusives mascots, at other side, NIntendo has Metroid, Zelda, Kirby.... Ps: Make Shenmue III for Xbox, Ps3, and the sales will be doubled.

I'm so glad Vanquish sold as much as it did! I was expecting a much lower number. But this is great news!

Sonic Colors is still on my must get list, but I so many games I haven't finished yet. Hey Sega isn't it funny how when you make good Sonic games you get rewarded with money and people actually wanting to play your games?

THAT'S BONKERS!

All companies go through a tough time but I definitely agree that SEGA has been out for too long to stay an underdog...with games like Bayonetta and Anarchy Reigns they aren't going anywhere anytime soon.

anarchy reigns looks awesome multi-player hack n' slash brawler.

Well, if they publishing games like Bayonetta, Vanquish and Valkyria Chronicles, I'm keep buying them. :)

Well see Sega when you make a good Sonic game people will buy it.

I wish the last challenge in vanquish wasn't so hard

the next Sonic game is going to have a 80 year old Sonic blazing by in a wheelchair

Looks like Sega is making a come back.

Quality over Quantity. Make less games but good games. More people will want them. More money. Better profit. Gee, Sega. What a concept.

Step 1: Sell less games Step 2: ??? Step 3: Profit!

"Also SEGA plans to abandon all non mobile/handheld 3rd party development and publishing next year in 2012" @Lindbergh2007. Do you have a source on this?

:)

sounds nice

@TheArcade. Quite alot. In 2009 they went patent crazy and issued trademarks for dozens of hardware patents including controllers, USB drives, hard drives, wi-fi, circuit board chips,SSDs e.t.c. This came after they filed two trademark names for arcade hardware "RINGWIDE" and "RINGEDGE". On top of that they have a arcade trademark called "SEGADRIVE" which has remained unused since it was filed back in 2006. Under the radar console rumors have surfaced about SEGA building a 3D stereoscopic console from this arcade hardware. In addition to that Imagination Techologies signed an exclusive deal with SEGA to develop a globe ray tracing GPU for them called "Power VR Rogue" in June 2010. Several europeon game sites leaked out this report last summer, the links won't fit here so send me a PM if your interested in the link. Also SEGA plans to abandon all non mobile/handheld 3rd party development and publishing next year in 2012. So there's alot of intersting stuff going on at SEGA.