Today, Sega announced its financial results for the first quarter of the fiscal year, related to the period between April and June 2025.
According to the documents provided by the company, net ales for the whole company were 81,026 million yen, down 22.7% year-on-year.
The company actually lost money, recording an operating loss of 519 million yen.
That being said, the while net sales were in line with expectations, the operating loss was smaller than expected.
Moving on to the Entertainment Contents business, which includes video games, net sales were 67.7 billion yen (down from 72.5 in the previous year’s comparable), while operating income was 7.1 billion yen (down from 11.8 billion yen).
We learn that the launch of the free-to-play game Persona 5: The Phantom X was “stronger than expected.” It exceeded 1.5 million downloads on the first day of launch.
New full games and other free-to-play games performed as expected, while repeat sales for older games and Rovio recorded a weaker performance compared to expectations.
Interestingly, the publisher mentions that it intends to create a virtuos cycle enhancing IP value via a transmedia strategy.
“Going forward, the Group will pursue a transmedia strategy aimed at creating a virtuous cycle of IP value enhancement and revenue expansion. This will involve diversifying the IP portfolio globally, including “Sonic”, as well as engaging in game sales and service provision, animation production, and character licensing businesses.”
Interestingly, Sega also intends to invest over 120 billion yen ($815 million) over the next three years into its consumer area (games for consoles and PC).
Of these, 90+ billion will be invested in enhancing major IPs developed by the company’s Japanese studios, while 30+ billion will be invested in revitalizing legacy IPs and the much-teased “super game.”
80+ million yen in the same period are reserved for strategic investment to establish further growth pillars including possible M&A (acquisitions) focused on the consumer area and gaming business. It’s worth mentioning that while “consumer area” is games for consoles and PC as mentioned agi, the “gaming business” focuses on gambling machines for casinos. It’s just one of the quirks of Japanese business lingo.
If you’d like to compare these results with historical data, you can read our report about the past fiscal year, based on data released in May.
Other gaming companies have also already announced their financial results this quarter, including Koei Tecmo, Ubisoft, Krafton, Electronic Arts, Capcom, Microsoft, Konami, Marvelous Entertainment, Nintendo, Bandai Namco, Sony, and Take-Two.
