Sega's Focus on Mobile Reduces Sales, But Raises Profits

Persona 5, Total War: Warhammer highlighted as key upcoming titles.

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Sega has detailed its financial results for the 12-month period spanning April 1, 2015 to March 31, 2016. With fewer video games being released, sales showed a decline. However, its focus on mobile games and Pachislot have helped improve profits over the same period in the previous year.

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The Tokyo-headquartered company listed sales at $3.1 billion, which is a five percent drop over 2015's $3.3 billion. Profits, meanwhile, showed a slight upturn by rising to $161 million, an increase of 0.7 percent.

In its statement, Phantasy Star Online 2, which launched in 2012 for PC, was described as having "robust" sales. Chain Chronicle, Puyopuyo!! Quest, and Hortensia Saga were also highlighted as key titles.

Sales of packaged games were "lower than the level in the previous fiscal year, despite the launch of Football Manager 2016."

Sega noted noted a slowdown in the spread of smartphone games in Japan. Popular mobile titles continue to dominate, which means the performance of medium to lower tier titles is in decline.

Looking ahead, Sega intends to give mobile title longer development time and spend spend more money on them, so that it can compete with the more popular titles.

In terms of video games, it is aiming to improve profitability by launching Phantasy Star Online 2 for PS4, along with launching Persona 5 for PS4 and PS3, Yakuza 6 on PS4, and Total War: Warhammer on PC.

For more on the health of other video game companies, check out summaries of recent reports below.

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