Sega has announced a 17.3% increase in net sales for the third quarter, with its gaming division performing better than anticipated

Image credit: Rovio/Sega

In the first quarter, Sega Sammy's net sales rose by 17.3%. Their Entertainment Contents division, encompassing video games, exceeded forecasts, contributing ¥68.4 billion ($432 million).

The company indicated that while major new releases will primarily occur in the third quarter and beyond, first-quarter net sales met expectations, with both operating income and adjusted EBITDA surpassing projections.

Financial Summary

For the quarter ending June 30, 2026:

Net sales: ¥95 billion ($600 million), a 17.3% rise
Entertainment Contents earnings (gaming sector included): ¥68.4 billion ($432 million), an increase of 1.1%
Operating income: ¥2.3 billion ($14.5 million), turning from a $3.5 million loss the previous year

Key Insights

Sega Sammy's gaming segment outpaced its initial quarterly predictions. While overall full-game sales and licensing performed well, free-to-play games did not meet expectations, prompting the company to enhance existing game operations.

Significant game releases are slated to commence in the third quarter, with Stranger Than Heaven and Persona 4 Revival expected in January and February, respectively. High numbers of wishlist registrations and video views signal strong interest, and Sega aims to boost anticipation to maximize future sales.

Projected growth in licensing revenue is expected to be fueled by anniversaries and adaptations of major intellectual properties, along with new titles from Rovio.

Earlier this year, Sega experienced a $200 million impairment loss related to Rovio following its acquisition of the Angry Birds developer in 2023. CEO Haruki Satomi attributed this to swift market changes and challenges in integrating Rovio’s Beacon technology into Sega’s mobile offerings.