Sega's net sales dropped 22.7% in the first quarter, reaching $548 million

Sega Sammy revealed its earnings for the first quarter, indicating a drop in net sales to ¥81 billion ($548 million) and an operating deficit of ¥519 million ($3.5 million).

Despite releasing only a few new games during the quarter ending June 30, 2025, the company reported that overall sales "surpassed projections", with the Entertainment Contents division, which includes gaming, "meeting expectations".

The numbers

For the quarter ending June 30, 2025:

Net sales: ¥81 billion ($548 million, a decrease of 22.7%)
Operating loss: ¥519 million ($3.5 million, in contrast to an operating profit of $130 million in the same period of the previous year)

The highlights

In the Entertainment Contents division, Sega's net sales fell by 6.7% to ¥67.7 billion ($458 million), while operating income plummeted by 39% to ¥7.1 billion ($480 million).

Although there were few new releases, net sales in this segment were "mostly as expected". However, operating income declined less than projected.

Full game catalog sales and Rovio titles did not meet expectations, whereas new releases "maintained consistent sales".

The latest free-to-play game, Persona 5: The Phantom X, performed exceptionally well since its June launch, with over 1.5 million downloads on its opening day.

New game sales for the quarter ending June 2025 totaled 610,000 units, down from 710,000 in the same time frame last year. Catalog titles sold 4.3 million units (reduced from 5.1 million), and full game sales reached 4.9 million (decreased from 5.8 million).

Sega emphasized its ongoing transmedia strategy, aiming to foster "a positive cycle of enhancing IP value and expanding revenues".

This strategy seeks to "broaden the global IP portfolio, including Sonic, and to develop game sales and services, animation, production, and character licensing businesses".

A part of this initiative included last month's opening of the Sega Store Tokyo, the first Sega-branded retail location in Japan.

Looking forward, Sega maintained the fiscal year forecast previously stated in May 2025.