Sega Q1 Report: Entertainment Soars, Profits Dip
Sega’s entertainment division is on fire, fueled by hit games and the Rovio acquisition, but overall profits take a hit.
By Nora Belle || Senior Author of ADM
5 min read || August 08, 2024
Entertainment Division Soars While Overall Profits Dip
Sega recently unveiled its financial performance for the first quarter of the fiscal year ending June 30, 2024. While net sales experienced a modest 3.2% decline year-over-year, the company’s entertainment division, encompassing its thriving video game business, showcased impressive growth, surging by 34%.
A key catalyst for this surge is the acquisition of Rovio, the mastermind behind the globally adored Angry Birds franchise. Since joining the Sega family in August 2023, Rovio has contributed significantly to the company’s bottom line, generating a substantial 8.7 billion yen in the quarter.
Another star performer is the critically acclaimed Shin Megami Tensei V: Vengeance. This enhanced edition of the popular RPG sold an astonishing 500,000 copies within just three days of its release, demonstrating the enduring appeal of the franchise. The continued success of the Sonic the Hedgehog movie series also played a pivotal role in boosting the entertainment division’s performance.
Beyond the latest releases, Sega’s existing titles continue to shine. Persona 5 Royal, the expanded version of the beloved RPG, contributed to a remarkable 790,000 unit increase in Persona series sales since April 2022. Other standout performers include Vanillaware’s tactical RPG masterpiece, Unicorn Overlord, the action-packed Like A Dragon: Infinite Wealth, and the critically acclaimed Persona 3 Reload.
While the entertainment division is thriving, it’s important to note that Sega’s overall profits declined compared to the same period last year. This downturn can be attributed to the successful launch of the Smart Pachislot Hokuto No Ken in the previous year.
Nevertheless, the company remains optimistic about the future. With highly anticipated titles like Sonic the Hedgehog 3, Sonic X Shadow Generations, and the innovative IP Metaphor: ReFantazio on the horizon, Sega is well-positioned to maintain its growth trajectory.
In conclusion, Sega’s Q1 financial report presents a mixed picture. While the entertainment division is experiencing a significant upswing, driven by successful acquisitions, new releases, and the enduring popularity of existing titles, the company’s overall profits have declined. However, with a promising pipeline of upcoming releases, Sega is confident in its ability to navigate challenges and achieve long-term success.
