Sega made an $18m loss in the first half of FY2015

[pirovash88]

http://www.gamesindustry.biz/articles/2014-10-31-sega-makes-a-loss-in-the-first-half-of-fy2015

Digital sales eclipse packaged games once again Sega made a ¥2 billion loss in the first half of the fiscal year after releasing just a single console game in the second quarter.

In the six month period ended September 30, 2014, Sega earned ¥154.2 billion ($1.38 billion) in revenue, down 5 per cent year-on-year. Operating profit was down 72 per cent to ¥3.45 billion ($30.9 million), and the company made an overall loss of ¥2 billion ($17.9 million).Sega's games division contributed less than a third of total revenue, largely due to a paucity of new releases. Only Persona 4 Arena Ultimax was launched in the second quarter, and its release was restricted to Japan for the accounting period. Ultimax sold 230,000 units before the end of September, taking Sega's total packaged sales for the first half of the fiscal year to 4.1 million - 2.72 million of which were catalogue sales.Sega's games division earned ¥48.2 billion ($439 million) in revenue, up 10 per cent year-on-year. Digital games contributed the majority of that figure, with ¥21.9 billion ($196 million) in revenue, while packaged games earned ¥15.3 billion ($137 million).That is likely to improve dramatically for Sega's nine-month results, however, as they will include Alien: Isolation, which launched a week after the accounting period closed.

Ouch, it would help if they released more games outside of Japan..

[JRcade19]

So it's the usual?

[Aki-at]

The loss had nothing to do with SEGA's consumer division which beat expectations.

But actually so did every other division bar one and not just by a little amount either;

In billion yen
Segment / Initial Expectation / Actual Sales
Pachinko / -8.0 / 3.4
Pachislot / 0.0 / 7.3
Arcade Sales / -1.7 / 0.1
Amusement Centre / 0.0 / -0.2
Consumer Division / -0.3 / 0.9

And yet they are revising their figures down for the full year. On a side note, Alien: Isolation is also seemingly doing better than expected (Expected 180,000 preorders ended up with 430,000 between the Playstation 4 (290,000) and Xbox One (140,000))

[MadeManG74]

What is Amusement Center? I thought that was Arcade machines, but there's also Arcade Sales?

Also HOLY FUCK AT THOSE PACHINKO NUMBERS. Ripping and running with that gamblin' money.

[Mariano]

Actually, the consumer division (Games, toys and animation) is pretty good right now. They didnt earn much, only 9 millons dolars aprox this half year, but for the end of the year (March 2015) they expect to earn 50 millons dolars aprox.
2 billon YEN for SEGA-SAMMY in losses is a joke, but they clear dont want to lose any money as you guys know.


Read carefully, the whole Holding is suffering right now (Pachinko and pachislot, amusement machines, and amusement facilities), BUT the video game division expect real progres in the future, is the only division that is healthy right now, and trust me, this is not very commun in SEGA.
according to their plans, they basically want to made a restructuring in the whole group, because they expect in the end of this fiscal year a 4 billons YEN in net income, that in NOTHING for them, so they see that something is wrong in the company and they want to change it.

Remember the restructuring that SEGA suffer in june 2012?, well that thing work for them, and now they want to do that with the whole group basically, because the consumer division may be OK but the others division are in a bad state right now.

So in the end, the videogames are not the problem here, is almost everything else, the arcades are suffering in Japan, and it seems according to their sales that the amusement machines businnes have demand, they are selling, but they are not earning money.

If someome have any doubt ask me, AKI will problably made a report of this anyway.

[Aki-at]

What is Amusement Center? I thought that was Arcade machines, but there's also Arcade Sales?

Also HOLY FUCK AT THOSE PACHINKO NUMBERS. Ripping and running with that gamblin' money.

Aren't you Australian? DON'T YOU SAY CENTRE?!

Anyway Amusement Centres are the actual centres SEGA's owns, this the money made by their arcades, food or experiences in their own parlous.

Arcade sales are the arcade titles they sell to amusement centres through out the country that are not owned by SEGA.

[Mariano]

What is Amusement Center? I thought that was Arcade machines, but there's also Arcade Sales?

Also HOLY FUCK AT THOSE PACHINKO NUMBERS. Ripping and running with that gamblin' money.

SEGA made videogames as you know, well they also made arcades machines (Like VF5) that they sell to the arcades in the world, AND also they operated some amusement facilities like bars, restaurants, and arcades itselfs.
This are the other two divisions that SEGA own besides the videogame one.

Also yes the pachinko and pachislot number are really big. So you can get an idea, SAMMY in a good year (not this one...) earn more money than Konami, Capcom, and square-enix TOGETHER.

[Nirmugen]

Last year in the same 2Q, TW:R 2 and new heavy-licensed Pachinko/Pachislot machines were released, so it's obvious that there is going to be a big difference.

Anyway, just like Aki said, they improve their profits that they expected and the consumer division proves to be stronger in the digital market.

Also, with their group structure plan released in May, they focused their activities in 3 grand groups:

-Pachinko/Pachislots (Sammy)
-Entertaiment(mostly Sega) where their core is the digital business
-Resorts and other activities

With this, they are looking forward to eliminate unprofitable businesses by 6 billion yen/$53 million.

[Draikin]

And yet they are revising their figures down for the full year. On a side note, Alien: Isolation is also seemingly doing better than expected (Expected 180,000 preorders ended up with 430,000 between the Playstation 4 (290,000) and Xbox One (140,000))

I was wondering where those PS4 and Xbox One sales numbers were from, given that Alien Isolation hadn't been released yet. Makes sense that those are the pre-order numbers, but in that case, the VGChartz numbers are nowhere near accurate (not that I expected them to be). They list the game at 190k worldwide now. I still can't figure out how those SKU numbers work though. Why only 1 SKU?

Also interesting: the Wii U sales estimates, is that for Sonic Boom only? If so, seems like they're only expecting to sell 300k copies of the game now.

[ROJM]

So Capcom's game consumer divison is down..and Sega's consumer division is going up...as it has been doing in previous years....and someone would like us all to believe that the Sega consumer divison is failing and not making any profit compared to Capcom....LOL...

[Sharky]

I wonder if they can turn that kind of loss around by the end of year report... Seems quite a big loss.
Lets hope Football Manager, Alien Isolation, Sonic, Bayonetta 2, Project Diva, and Valkyria Chronicles can turn it Q3 around. (I assume Sega gets a small cut of Bayonetta 2 anyway.)

[JRcade19]

Football manager alone will save their bottom line.

It's been in the top 10 sellers on Steam for quite a few days now and even was in the top 5 for a good few hours.

[ROJM]

SEGA made videogames as you know, well they also made arcades machines (Like VF5) that they sell to the arcades in the world, AND also they operated some amusement facilities like bars, restaurants, and arcades itselfs.
This are the other two divisions that SEGA own besides the videogame one.

Also yes the pachinko and pachislot number are really big. So you can get an idea, SAMMY in a good year (not this one...) earn more money than Konami, Capcom, and square-enix TOGETHER.

True...but i can why some people would like this incarnation of Sega to produce titles on console as big and well known to gamer gamers as the games from those companies. SOJ just took another avenue in getting their profits...and its worked.

[Nirmugen]

I wonder if they can turn that kind of loss around by the end of year report... Seems quite a big loss.
Lets hope Football Manager, Alien Isolation, Sonic, Bayonetta 2, Project Diva, and Valkyria Chronicles can turn it Q3 around. (I assume Sega gets a small cut of Bayonetta 2 anyway.)

Sure they will do it. All the net losses that come from 2Q were because of the expenses of the Resort Casino Hotel that they had expanded with difficulties with the material. A very expensive investment by the way.

Just think that they had a profitable quarter for Sega (Consumer side and even the Arcade side return to profits) with only an Atlus Game, pre-orders from Alien, 2 steady mobile games and one MMO Game.

[Team Andromeda]

So Capcom's game consumer divison is down..and Sega's consumer division is going up...as it has been doing in previous years....and someone would like us all to believe that the Sega consumer divison is failing and not making any profit compared to Capcom....LOL...

Capcom made a profit , something which SEGA couldn't even with its digital sales, it's PC sales and all the other dept's you love to list ,  also Capcom got more revenue from games than SEGA . Watch Capcom post rather nice profit in the next quarter on the back of the new Monster Hunter alone . So sorry again you're very much wrong.