Aki- yeah, that's a giant surprise. How much does it cost to invest in, say Virtua Fighter, as opposed to Yakuza? And let's not forget that the arcade team's success is also generated at home. Virtua Fighter makes plenty of money on the consoles, where Yakuza isn't released in the arcade. The AM divisions can have their fingers in both pies. Also to consider, Sega has new sales every time they tweak Virtua Fighter or Quest of D. There isn't a Yakuza 3.1 C, or Yakuza 3 Evolution, or Yakuza 3 Online, or Yakuza 3 R.
You're telling me that even with a close to 6 million seller, another one that sold over a million and another title that sold over half that, SEGA's consumer division's profits is all going to Yakuza? It’s not, they have been downright terrible at trying to make a profit recently, even with a host of big sellers. Imagine in how much of a loss they would have been if they didn't have Mario & Sonic at the Winter Olympic Games to bail them out.
I would also like to know what arcade game that isn't Virtua Fighter has been brought to the console by SEGA recently? I'd also like to inform you it was not Virtua Fighter that spurred profit for SEGA's arcade divison, it was mainly the sales of Shining Force Cross and more significantly, Border Break, which is also a big budgeted arcade title.
Okay, I'm fucking drunk and ready to tango, bitch.
No, I'm not saying that. I am saying that consumer games cost a whole hell of a lot more to develop than some arcade game. Valkyrie of the Battlefield, Yakuza, all of those Sonic games, things like Phantasy Star Universe, all those shitty handheld games, the investment Sega makes into outside development games like Resonance of Fate, Bayonetta, Aliens Versus Predator, Alpha Protocol, Sonic Chronicles and so on. Three of those games are RPGs, and god knows they aren't cheap.
We also need to consider money spent on games that have yet to see the light of day (or never will) like the mysterious Silicon Knights game (their services probably cost a pretty goddamn penny to begin with, not to mention the actual cost of developing the game that never made money) or the Aliens RPG which must have cost a decent amount. Even supposing they only spent one hundred thousand dollars on the initial contract, that's one hundred thousand dollars never recouped because the game never came out. Then we have Fifth Phantom Saga.
Consumer games cost more. That's more or less the way it is. They all take up a bunch of money to develop. In some cases (Phantasy Star Universe, Golden Axe) even the long term profitable ones don't look that way on the sheets, because they don't manage to recoup those losses immediately. Things like rereleases and using the existing tech to make other games (PS Portable) help out in that regard, but the results aren't shown black and white on the balance sheet during a fiscal year.
Phantasy Star Universe was a big reason the Consumer Division lost money from about 2003 to about 2006, and when it came out in bombed hard. Three years of loss on the game was not recouped during fiscal year 2006, so it looks like a loss. In reality, Phantasy Star Universe made money over a longer period of time with things like the monthly charge, DLC (assuming it has some on the X360), as well as providing a very solid basis for two games that sold as well as the original.
Virtua Fighter is nothing to sneeze at and you know it, Aki. They made enough money off the arcades alone to cover the cost of porting the sonbitch to the consoles. So they practically printed money with its console release, and you can bet your ass they will again with some sort of Virtua Fighter 5R package that will come out.
Virtual On is another fine example. It sold fairly well and made plenty of money. They didn't even have to pay to advertise and press discs. AfterBurner will be the same way. OutRun 2 on the XBLA was probably counted as being from the arcade division on the balance sheets because the game is ultimately AM-2's. Ghost Squad would have been another cheap as hell port of an extremely popular arcade game that sold, what, 700,000 units? Hardly chump change.
As Storm so lovingly pointed out, SFC sold like shit.