Sega Sammy revises revs down, profits up

Publisher says weak NA software performance led to lower-than-expected sales, but slot machines raise income margins; former Sega Toys employee under investigation.

50 Comments

Activision isn't the only publisher tinkering with its projected earnings today. However, whereas Activision's revision fell entirely within the positive column, Japanese gaming giant Sega Sammy's update today was of a more mixed composition.

Sega was expecting more from its games in North America.
Sega was expecting more from its games in North America.

For the April 1, 2009 to March 31, 2010 quarter, Sega Sammy now expects net revenues of ¥380 billion ($4.08 billion), down 9.5 percent from its previous estimate of ¥420 billion ($4.51 billion). In light of the revision, Sega Sammy is now expecting total revenue to slip 11.5 percent from the year prior, where sales stood at ¥429.2 billion ($4.61 billion).

On the other hand, Sega Sammy significantly revised its profit projections upward today. Having previously forecast earnings of ¥15 billion ($161 million), the Japanese publisher now anticipates profit to hit ¥18 billion ($193 million), a 20 percent increase. Sega Sammy's revised bottom line represents a dramatic reversal from the 2008-2009 fiscal year, when losses amounted to ¥22.8 billion ($245 million).

Sega Sammy attributed its lowered revenue outlook to soft game software sales in North America, as well as lethargic business at its amusement facilities operations in Japan. Though the publisher called out no specific titles, Sega launched PlatinumGames' Bayonetta during its January-March quarter in the US, a game that has posted platinum sales.

Other releases during the period include Rebellion's Aliens vs. Predator, Sonic & Sega All-Stars Racing, Napoleon: Total War, and Resonance of Fate. Total software units are now expected to come in at 26.3 million for the year, down from previous projections of 29.7 million.

As for the rise in profit, Sega Sammy said that it has experienced booming margins in its pachislot and pachinko machine businesses.

Sega Sammy also said today that it has begun an investigation into a former employee of its Sega Toys division who "conducted multiple inappropriate transactions." The publisher was light on details of the infraction, though it did say that the activity could end up costing it an estimated ¥500 million ($5.37 million) in liabilities. This figure was not included in today's earnings revision, and Sega Sammy expects to make a subsequent announcement once the exact amount is determined.

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Avatar image for steve4123456789
steve4123456789

A new console, come on sega, regain your formor glory!

Avatar image for hannify
hannify

@ KuRf Forget Yakuza 4. Shenmue III is something i have been waiting for so long that i can't remember when I bought Shenmue II on dreamcast.

Avatar image for jtthegame316
jtthegame316

Shenmue 3 with a release of the others on 360 and sega would make me happy so we can use the save from the othes in it like they intended. yakuza 3 on xbox and panzar dragoon saga on xbox live arcade and i would be happy with sega. there is a few classic saturn and dreamcast games they should put on xbox live arcade

Avatar image for Zen
Zen

I second that Ripper!!!!

Avatar image for Ripper_TV
Ripper_TV

Everybody wants Shenmue 3.

Avatar image for Supersayian007
Supersayian007

shemnue 3 why because i want to know wtf that sword is lol

Avatar image for DeadnBuried
DeadnBuried

Put Valkyria Chronicles 2 on the PS3 rather than the PSP and you'll have my money. (Y)

Avatar image for tommy_boy9999
tommy_boy9999

Sammy will you please SELL Sega to Nintendo. I would love it if Nintendo Bought Sega

Avatar image for JOKER677
JOKER677

I think they would have to pay fees to PSN if they did have it on their store for download

Avatar image for wexorian
wexorian

Sega would get more money if they did not launched AVP :D it could be better if they launched some new IP other games were awesome

Avatar image for KuRf
KuRf

I got an idea Sega...why not release Yakuza 4 to the whole world and in full game mode..no block on the hostess or whatsoever...that'll improve your revenue for sure.....or what you can do is put it on the net..psn live...along with all the previous games...won't cost you a thing and you get profit from it..

Avatar image for cube-gage
cube-gage

Shenmue 3. Or atleast put the first 2 games on PSN /xbox live. Seriously, there is no excuse. Shenmue 3 wouldnt even cost that much today.

Avatar image for SicklySunStorm
SicklySunStorm

give us Shenmue 3, and finally the opportunity to kick Lan Di's butt. that's all we want Sega.

Avatar image for calum1984
calum1984

On another note wouldnt mind them releasing dragon force, shining force, panzer dragoon, SHENMUE!!!, :), streets of rage, ecco the dolphin games out for the new generation. Did i mention SHENMUE!! just a hint to sega to maybe finish what most sega fans have been hounding/sending death threats to sega for lol

Avatar image for calum1984
calum1984

there are some hints that there "could" be a new console such as the patents sega filed for a pad but just as equally the online streaming service sega started sells pads closly resembling what was filed for (although the pad with built in touch screen they filed still has appeared). BUT and the is a big BUT it could also be an officially licensed megadrive/saturn/dreamcast clone, a handheld console, games console, a new pad for sega games streaming service, a special pad to be released on current consoles for a specific sega game......... list goes on so what im basically saying is your picking 1 possibility out of 100

Avatar image for metroidhunterx
metroidhunterx

@ LindBergh2007 RingEdge (as well as RingWide) are not gaming consoles. They are arcade hardware units. You are fanning the flames of an already ridiculous rumor. As much as I would love a successor to the Dreamcast, it just isn't happening.

Avatar image for mijahi
mijahi

RoF is an amazing RPG...too bad it was released in the unsettled wake of FFXIII. Don't get me wrong, FFXIII was a pretty decent game as I did play it and beat the main story. But I am now 50+ hours into RoF, chapter 7 or 8 I think...and RoF has FFXIII beat in almost every meaningful category. Too bad there was no real media push here in NA for RoF, a lot of disillusioned FFXIII buyers would probably be glad to know there is actually a terrific console RPG out there right now!

Avatar image for kejigoto
kejigoto

Sega just work on making Sonic 4 not suck and we'll be fine.

Avatar image for lbptoady
lbptoady

They need the Dreamcast 2!

Avatar image for athenian29
athenian29

Blagh, Sega. :?

Avatar image for LindBergh2007
LindBergh2007

frazzle00. The RingEdge hardware was trademarked as a console too in 2009. This explains why there has been no information on it's arcade lineup and why Sega has been very silent reguarding plans for it. both Border Break and Shining Force Cross are test run prototype titles and are not part of the hardware's official arcade lineup. SEGA always bases consoles off of arcade hardware. didn't you know that? The full detailed RingEdge arcade lineup will be unveiled at this year's JAMMA.

Avatar image for lamprey263
lamprey263

I'm still curious if Sega is working with Monolith Productions on the Condemned series. After all, they still published Condemned 2 while Monolith was under control of WBIE. And lately articles have been saying Monolith won't be doing FEAR 3, but I also heard that Monolith would be collaborating with Day 1 Studios so I'm curious how occupied Monolith will actually be in the production of this game. I'm also curious since they really haven't announced any projects since they released Project Origins. I hope they're working on a third Condemned game, or at the very least I hope they're considering it in the near future.

Avatar image for guichan
guichan

Sega may not do more consoles but still do great games , after the DC many games sucked but they are getting better again like any other good 3rd party after all they were a great first party

Avatar image for The_crapgamer
The_crapgamer

@ ahpuck 90% is a lot still. Which I can understand seeing as how difficult the PS3 is to develop for. In my opinion most games run slower and give a blur effect on PS3. That's just my opinion though.

Avatar image for Pete5506
Pete5506

Bayonetta and RoF are great games

Avatar image for ahpuck
ahpuck

@ The_crapgamer no, not ALL games are developed on xbox first. A majority of them are, but not ALL of them. Castlevania: Lords of Shadows is a good example, as well as the next Metal of honor game. Besides, capcom, namco and many other companies have made multiplatform games that play great on both consoles. Sega messed up, bad, with the ps3 version of bayonetta.

Avatar image for shinmew
shinmew

Perhaps it would have been a LOT more if Sammy Vs Capcom would have come out. *hint hint*

Avatar image for frazzle00
frazzle00

@LindBergh2007 The RingEdge and RingWide are arcade hardware. As much as I would love to see Sega re-enter the console market, I doubt they will anytime soon. Things are already too crowded as it is with Nintendo, Microsoft and Sony.

Avatar image for vgbum
vgbum

Poor Sega. Guess I'll pick up Bayonetta after my finals.

Avatar image for LindBergh2007
LindBergh2007

The_crapgamer. SEGA has been hard at work on a Dreamcast successor called "RingEdge" since 2008. It's set to launch next year in Japan and worldwide in 2012.

Avatar image for green_dominator
green_dominator

If Sega would just worry about their own franchises for awhile maybe they might turn a small profit..... Announcing Sonic 4: Episode 1 is a start but they need to bring back a few more games from the 16 bit days in this manner.How about a new Vectorman or any number of their classic games or maybe they've fallen into their old paterns but doing what everyone else does..... Sonic and Vectorman were great because they were inventive characters and the games were fun..... Vectorman was just unique.....

Avatar image for GeigerdolylWodd
GeigerdolylWodd

Cmon Sammy release a digital dl for Iron Phoenix! I'd buy it I swear and there's got to be other players out there somewhere who like that game. You wouldn't even have to necessarily worry about putting it on mass produced solid discs.

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Roger_Smith

You really are a hypocrite aren't you Soniczero1993? "hurrrrrrr i hate anything japanese or related to japanese god of war is better than this OH BOY I LOVE SONIC THE HEDGEHOG burrrrr."

Avatar image for lamprey263
lamprey263

Bayonetta was effing awesome, cheesy and outrageous at times but lovable with great challenging replay value. Definitely among one of my favorite games for this year. Sega also published Alien vs Predator which despite being a letdown sold a lot better than Bayonetta. I think their biggest mistake making that game was giving the task to Rebellion. I mean, sure they made AVP on the Jaguar and the first one on the PC, but they could have gone with a better studio. Monolith made AVP2 on the PC which was a lot better than the previous AVP games in my opinion. They make other great FPS games like Tron 2.0, and they did both the first two games for the F.E.A.R. and Condemned series. I think what they've illustrated best with both F.E.A.R. 2 and Condemned 2 is they've really developed a talent for bringing horror into FPS games; they'd of been perfect for making the last AVP game, but oh well. Sega still has a shot at publishing other hits this year. I hope Gearbox does a better job at Aliens: Colonial Marines than Rebellion did with their game. Vanquished being developed by Platinum Games also sounds like it has potential. And there's the long awaited Alpha Protocol being made by Obsidian. I think they have a good start to their next fiscal year. But if I could have one wish from Sega, it'd be to bring back Panzer Dragoon.

Avatar image for The_crapgamer
The_crapgamer

@ ahpuck Do you realize all the multiplatform games are made on XBOX 360 dev kits? So pretty much any game that is on XBOX 360 and PS3 was developed on the 360. Just gotta deal with it I guess.

Avatar image for thingta42
thingta42

Beyonetta really only appealed to some people though, sadly i bet most of your standard Halo, MW Players ignored it. I loved it for it's crazyness and over the top action. AVP3 again only appealed to die hard fans like myself, most people would of been put of by it's low review scores, and because of that past on that too.

Avatar image for ahpuck
ahpuck

If they had made Bayonetta for PS3 as good as it was for xbox, i would have bought it. As is, i'm not going to spend my money on an inferior game. Sega has all the tools to make lots of money, they are just not smart enough to do it.

Avatar image for demidz92
demidz92

I want to play it on my PC :(

Avatar image for jmartin1016
jmartin1016

Good turn around! Nice to see Sega getting their butts back inline. A majority of the games they make are still subpar, but with Bayonetta, Fate, Yakusa 3, they are having a good year for sure. A new Afterburner is on it's way, and a new Sonic. Yay! Welcome back Sega! How about you make a new Guilty Gear instead of the Iron Man 2?

Avatar image for reaver-x
reaver-x

typical that they blame us for it. Morons. Sega you chose to release your games in a crowded month. You chose to not advertise your games properly. You only have yourselves to blame for your games performance!!!

Avatar image for The_crapgamer
The_crapgamer

Instead of selling out, Sega needed to re-tool and skip a console generation. Come out swinging with a Dreamcast Successor. Sega had the problem of putting out too many add on accessories and then almost immediately stop support of said product. People loved the Genesis and Sonic, then they tried to force the next generation with the Sega CD and 32X. Dreamcast was amazing and I actually prefer it to the PS2, if only it could have lasted another couple of years. I hope they get there stuff together and try for a new console. If Nintendo can make money from a gimmick, then Sega could do the same.

Avatar image for Barighm
Barighm

Resonance of Fate would have sold a lot more if people knew it existed...and there were more copies available. It's frickin hard to find that game anywhere offline.

Avatar image for Soniczero1993
Soniczero1993

I don't like anything related to the Japanese. God of War 3 over this crap.

Avatar image for misterstatus
misterstatus

No matter how many things Sega does right these days, they just can't seem to shake their old image that led to the failure of the Dreamcast and very nearly the end of Sega itself. I thought Bayonetta and Sega All Stars Racing were great, as well as Sega Rally Revo and House of the Dead Overkill, and can't wait for the new 2D Sonic game, but I think a lot of people still see Sega as nothing more than the company that lost the hardware wars to Sony.

Avatar image for AzelKosMos
AzelKosMos

I bought Bayonetta day 1. Have yet to play it though, I have too many other games to get through :(

Avatar image for Shinkada
Shinkada

Really? People didn't want to play an inferior version of DMC? No kidding.

Avatar image for Realacide
Realacide

This will be an awesome year for Sega if Sonic 4 gets a 8.5 or above.

Avatar image for RGDT021
RGDT021

I love the Nude Patch for Bayonetta... makes it much more worthwhile to play!

Avatar image for xYamatox
xYamatox

Just picked up Bayonetta for $40 brand new (thank you, Gamespot). No surprise being a huge DMC fan, I absolutely love the game.

Avatar image for fkbwii
fkbwii

I want to play Bayonetta, but there is just too many games to play right now! God of War 3, FFXIII, MW2, Bioshock 2, Mass Effect 2, Bad Company 2 and so many more!