On Friday, SEGA Sammy Holdings posted their 3rd quarter results for the fiscal year 2012. In it they gave out numbers for Sonic Generations, Mario & Sonic at the London Olympic Games 2012 and Hatsune Miku. Following the disaster that shaked Japan to its core, many Japanese business are recovering strongly but how did SEGA, in particular their consumer division, cope with the financial crisis in America and Europe? And did both their arcade operations and Sammy’s own business recover strongly from the disaster? Read on to find out.
Overall, the group posted some extremely healthy figures, with net profits reaching ¥34,384 million (Or £285.5 million/$451.2 million). Whilst an entirely great figure, it should be noted that this is a decrease pf 6.6% from the prior year. It certainly would cause a decrease on their full year figure, the company predicting their full year net income to be down by 8.4% to ¥38 billion (£315.5 million/$498.7 million) so whilst net income would be down, still a great figure to be able to pull off, especially as the Japanese earthquake that rocked businesses nationwide and seemed to have thrown off several segments profitability.
Not everything was peachy for their consumer business though, this was despite SEGA having two games that sold over a million in the Oct – Dec 2011 period with Mario & Sonic at the London 2012 Olympic Games (Selling 2.390 million) and Sonic Generations (Selling 1.630 million) with the only other title SEGA showing numbers for was Hatsune Miku Project Diva Extended (290,000) in the end, SEGA’s consumer division suffered “sluggish demand” in the European and American markets, the segment reported an operating loss of ¥5,509 million (£45.7 million/$72.3 million) a downgrade from last year were the segment managed an operating profit. Still, SEGA is expecting the segment to post a profit in the end, but much will surely depend on titles such as Binary Domain and Rise of the Samurai performing. Before we move on, SEGA also mentioned Kingdom Conquest and Ryu Ga Gotoku (Yakuza) mobile doing well for them, with Kingdom Conquest getting 2 million downloads to date, an impressive figure and no doubt what inspiried Samurais & Dragons.
Moving away from their console business, SEGA’s traditional arcade business has certainly picked up over the last few years and it now seems the segment, both in arcade sales and amusement centre operation, are starting to turn profits on a regular basis. In the arcades sales, SEGA noted impressive sales for “StarHorse3 Season I: A NEW LEGEND BEGINS” (¥3.3 billion) WORLD CLUB Champion Football Intercontinental Clubs Series (¥3.1 Billion) and SEGA NETWORK MAHJONG MJ5 (¥2.7 Billion) Thus, this allowed the arcade machine sales to report an operating profit of ¥5 billion (£41.5 million/$65.6 million) whilst the Amusement Centres recorded an operating income of ¥1.2 billion (£9.9 million/$15.7 million) despite this, SEGA will continue to close more centres than opening, with 247 centres still open in Japan (At this point last year, they had 252 opened) and only 3 arcade centres still left open overseas (Compared to the 11 this time last year)
Finishing off this article, it should come as no surprise that Sammy once again produced profits that are almost unrivaled in the video game industry itself (with only Microsoft and on occasion, Activition, being able to topple them) with sales for Pachinko and Pachislot machines totalling an impressive ¥67.4 billion in operating income (£559.6 million/$884.5 million) it certainly shows that the segment that was struggling with an operating loss of similar figures only in 2008 and 2009 has recovered exceptionally well, one hopes this can continue for all of SEGA Sammy.
That about rounds up another financial report from myself, I hope you enjoyed reading it. SEGA Sammy’s next financial report which would happen to be their full year report in May 2012. By that time, no doubt we would see continued sales of Sonic Generations and Mario & Sonic at the London 2012 Olympic Games getting it’s 3DS version and a major title from Ryu Ga Gotoku Studio in Binary Domain. ‘Til May, thank you for reading!