Sega’s Entertainment Contents division, which houses its video game activities, “exceeded expectations” in the first quarter of the fiscal year due to strong sales of complete games and DLCs.
As noted on the company’s website, Financial report for the quarter ended June 30, 2024Net sales for the segment rose 34 percent to 72.5 billion yen ($496.6 million). Operating profit rose to 11.8 billion yen ($80.8 million), up from the 4.3 billion yen reported at the same time last year.
Full game sales for the quarter totaled 5.8 million units, including 710,000 new releases and 5.14 million catalog titles. That’s up from 4.87 million units sold in the first quarter of last year, but Sega said full game sales were “slightly below expectations.”
Nevertheless, the company praised Shin Megami Tensei V Vengeance for its “positive” performance after the title recorded over 500,000 sales in three days. Older titles like Unicorn Overlord And Persona 5 Royal (Remaster) made similarly notable contributions.
The Japanese publisher also praised the “strong” revenue associated with its Sonic film series.
Sega confirmed its Acquisition of Rovio in August 2023 contributed to positive results, with the latest results taking into account the sales and profits of the Angry Birds maker.
“The increase in profit compared to the same period last year is also due to the inclusion of Rovio Entertainment Corporation, which was acquired in August 2023,” Sega added. “Although the impact of the amortization of goodwill and other intangible assets on profit was immaterial, Rovio Entertainment Corporation contributed to the Group’s profit with its profit after amortization.”
Looking ahead, Sega expects free-to-play releases such as Sound rumble and catalog sales to create a “solid performance base” for the remainder of the fiscal year. The company also expects a boost from the release of new titles such as Sonic X Shadow Generations And Metaphor: ReFantazio.
The company forecasts net sales of 335 billion yen and operating profit of 38 billion yen for its Entertainment Contents business for the full fiscal year ending March 31, 2025.
