Today, Sega announced its financial results for the first nine months of the fiscal year, related to the period between April and December 2025.
According to the official documents, sales were 335,232 million yen, up 4.0% year-on-year, while operating income was 19,844 million yen, down 54.6% year-on-year.
This was below the company’s forecast and was caused by Full Game sales, new free-to-play titles, and Rovio’s performance falling short of expectations.
This included the recording of an extraordinary (which in financial lingo means one-time) loss related to Rovio, which did not perform as well as it was expected when it was acquired.
This has been quantified as impairment losses of approximately 31.3 billion yen on goodwill and other intangible assets, recorded in Q3 and as such part of today’s report.
This has also caused the decision to suspend large-scale acquisition for the time being and to reallocate the funds that were set aside for them (20.0 billion yen) into the acquisitions of treasury stock.
Looking specifically at the Entertainment Content Business (which includes games), which includes video games, sales were 242.2 billion yen, up 1.5% year-on-year, while operating income was 23.7 billion yen, down 31.5% year-on-year.
This is due to the underperformance mentioned above, partly offset by the steady performance of existing free-to-play games and the overperformance of Licensing revenue, subscription services, DLC, and Animation.
Sega decided to revise its full-year forecast for the segment downward, partly due to “soft” performance of the Consumer area of the business (non-free-to-play PC and console games). It now expects sales at 330 billion yen (instead of 336) and operating income at 30.5 billion (instead of 39.5).
The forecast was also changed for the full company, up from 475 to 490 billion yen for sales and down from 53 to 40 billion yen for operating income.
That being said, we learn that Yakuza Kiwami 3 & Dark Ties has “shown a good start” in terms of sales.
If you’d like to compare these results with historical data, you can read our report about the past quarter, based on data released in November.
Other gaming companies have already announced their financial results this quarter, including Koei Tecmo, Capcom, Microsoft, Konami, Nintendo, Sony, Square Enix, and Ubisoft.
