Sega reports 8% decline in revenue: financial expectations for next year lowered

Sega has announced its financial results for the nine months ended 31 December 2024, reporting an 8.1% year-on-year decrease in net sales to ¥322.3 billion ($2.1 billion). Operating profit also decreased by 20.8% to ¥43.7 billion ($287.9 million).

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The decline in revenue is partly due to the sale of Amplitude Studios in November 2024, which resulted in a loss of approximately ¥6.1 billion ($40 million). In addition, the company announced the cancellation of Football Manager 2025 due to difficulties in achieving the expected quality of the product by the planned release in March.

Despite the overall decline, the Entertainment Contents segment, which includes video games, showed growth, with net sales up 8.2% to ¥238.6 billion ($1.5 billion) and profit up 88% to ¥37.5 billion ($246.9 million). This growth was partly driven by the success of Sonic the Hedgehog 3, which grossed $460 million at the global box office, becoming the second highest-grossing video game film ever.

In light of this performance, Sega revised its outlook for the fiscal year, lowering its expected net sales from ¥335 billion ($2.2 billion) to ¥320 billion ($2.1 billion). However, the operating profit forecast was raised from ¥45 billion ($296.5 million) to ¥46 billion ($303.1 million).

Source: Sega