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Sega Gaming Business Achieves Positive Financial Results as Total War Restores User Confidence

Giuseppe Nelvaby Giuseppe Nelva
November 7, 2024
in News
Reading Time: 3 mins read
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Today Sega announced its financial results for the first half of the fiscal year, related to the period between April and September 2024.

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According to the press release, sales for the whole company were 211.6 billion yen, slightly down from the 221.6 billion yen recorded in the same period of the previous fiscal year.

Operating income was 32.8 billion yen, down from 40.0 billion yen in the same period of the previous fiscal year.

That being said, the overall results exceeded expectations due to a strong performance of the Consumer Segment (console and PC games) and animation.

The company also recorded an extraordinary loss of 5.9 billion yen due to the now-completed restructuring of its European business, which culminated with the sale of Amplitude Studios.

Looking at the Entertainment Contents Business, which includes video games, sales were 141.7 billion yen, up from 121.7 billion yen in the same period last year.

Operating income was 18.7, up from 7.9 billion yen.

The business enjoyed a strong performance as a whole, far exceeding expectations due to strong DLC sales. Sales of full games increased year-on-year but were slightly below expectations. The recording of sales achieved by the recently acquired Rovio also contributed to growth.

Repeat sales of older games enjoyed steady performance, led by Persona 5 Royal and Unicorn Overlord. Sales of DLC for the Total War series and the expansion into subscription services for catalog titles also had a “positive impact” on business.

With Metaphor Re: Fantazio and Sonic X Shadow Generations enjoying strong starts and Like a Dragon: Pirate Yakuza in Hawaii coming soon, Sega is confident in its full-year performance.

It’s worth mentioning that both Metaphor Re: Fantazio and Sonic X Shadow Generations launched after the end of the period included in the financial results, so any revenue they’re generating will be included in the next quarterly report which will likely be announced in early February.

Interestingly, the documentation also mentions that Sega has seen recovery for Creative Assembly’s Total War franchise.

Sales of both Total War: Warhammer III and Total War: Pharaoh have increased along with the high ratings of the DLC released this fiscal year.

The ratio of positive Steam reviews for Warhammer III has recovered following the collapse due to a botched launch of DLC in August 2023.

Total War Warhammer Reviews

This recovery was due to the strengthening of communication with the community and the review of content and pricing of the DLC themselves.

If you’d like to compare with historical data, you can check out Sega’s financial results from the previous quarter, announced in August.

Other gaming companies have also already announced their latest financial results, including Koei Tecmo, Capcom, Electronic Arts, Ubisoft, Microsoft, Konami, Marvelous, Nintendo, Bandai Namco, Take-Two, Krafton, and Warner Bros. Discovery.

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