Sega's revenue decline for fiscal year 2025 is mitigated by a "strong" showing in its gaming and entertainment segment
In its financial report for the year ending on March 31, 2025, Sega Sammy disclosed that while net sales decreased by 8.5% and operating income dropped by 16.8%, ordinary income in its entertainment sector, which includes video games, increased from ¥30.8 billion in 2024 to ¥41.8 billion. This rise was attributed to strong sales from previously released high-margin titles, including benefits from Sonic-related movies, downloadable content (DLC) sales, and license fees, despite canceling Football Manager 25.
Key Financial Figures:
For the year ending March 31, 2025
- Net sales: ¥428.9 billion ($2.89 billion), marking an 8.5% decline compared to the previous year
- Operating income: ¥48.1 billion ($323 million), reflecting a 16.8% reduction year-on-year
- Ordinary income: ¥53.1 billion ($357 million), a decline of 11.1% from the prior year
The company highlighted that major new releases performed admirably and emphasized the resilience in repeat sales which were not significantly impacted by the Football Manager 25 cancellation. Their free-to-play offerings matched expectations, and sales were positively influenced by currency exchange rate changes, with notable licensing revenue and DLC sales.
Sega also mentioned successful expansion of intellectual property (IP) through transmedia avenues, particularly naming titles such as Sonic x Shadow Generations, Metaphor: ReFantazio, and Like a Dragon: Pirate Yakuza in Hawaii, although specific sales figures were not shared. The box office earnings for Sonic the Hedgehog 3 have reportedly surpassed $490 million globally.
In the upcoming financial year, Sega is expected to release new titles including Sonic Racing: CrossWorlds and Yakuza 0 Director's Cut, alongside free-to-play games like Sonic Rumble and Persona 5: The Phantom X, which will launch in Japan after its initial 2024 release in China.
The company plans to enhance operations for both existing and forthcoming projects at Rovio and reiterated its dedication to the Football Manager series with a new title slated for 2026. Development for a sequel to Alien Isolation and the Total War series is also in the pipeline.
Efforts to revive classic franchises such as Crazy Taxi, Golden Axe, and Jet Set Radio are in progress. Additionally, Sega aims to expand its transmedia and "global Games as a Service" (GaaS) initiatives, while investing in older IPs, its "Super Game" portfolio, and animation ventures. It is also looking to revitalize its European operations through its Football Manager and Total War series.
The corporation reported that the current increase in US tariffs has had a "minimal" effect to date, but acknowledged potential impacts on the sales of physical game copies in the future.