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.
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.
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
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
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$$IC$
"... the market demand for new content geared to social networking service and smartphone is expanding." Translation: We can't hack it. We're going to try making simple games and hope they catch on with the Facebook/i-Phone crowd.
I feel sorry for the 1 million who purchased Iron Man 2. The game lack serious production quality and it's unfortunate for such a great character like IM. The game could have been really cool. And we have more similiar crappy movie-tie-in games next year with Captain America and Thor. Both from SEGA. If they want to be serious players in the game publishing industry, they must work on the quality and value of their games. Otherwise, they should just release them on a different price point. Like $39.99 or $29.99. To pay $60 for IM2 should be a crime.
Movie games = profit, not quality. Movie games are designed to capitalize off of the hype of the movie it's connected with. Developers spend no more that 12 months on the game. It's the moms and dads and the hype-fueled kids of the world that get suckered into buying them. They make $$$ with little effort. Taking money from idiots. simple.
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.
@TheGreyArea Sheesh, does EA take the blame for everything negative in the gaming world. Sega published AP, not EA.
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.
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.
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.
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.
*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.
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.
And by the way Bayonetta, and MadWorld were just awesome among other games...sega is focusing again!
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!
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!
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?
did parents buy ironman 2 for their kids or something? I dont believe they sold over 1,000 copies of that game...
Make a 3D Guilty Gear that wont be as bad as King of Fighters whatever it was called but as good as SFIV~
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.
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.
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)
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.
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.
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.
@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
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*
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