Sega slashes expected profits by 90% (still profitable)

[Sharky]

The company now expects to close its fiscal year next March with a profit of 2 billion yen (~$16.2 million USD), down from the predicted 19 billion yen (~$154.2 million USD) it was clinging to as recently as its last earnings report.

 Developers should note that while Sega is laying some of the blame on weak sales of the pachinko and pachislot machines which make up its primary income source, the lion's share of the cutback in expected profits fell on its video game business (e.g. the Entertainment Contents division, see breakdown below.)

http://www.gamasutra.com/view/news/261030/Sega_slashes_expected_profits_by_90_due_to_anemic_game_biz.php

To me this is more than expected, this year SEGA have been pretty bare, they've pushed almost all games into 2016. Thankfully next year SEGA/Atlus will release some potential big hitters.
-Sonic 25th Anniversary
-Total War: WarHammer
-Persona 5
-Football Manager 2017
-Odin Sphere (remake)
-SMT IV Final
-13 Sentinels: Aegis RIM
-Yakuza 5 (West)
-Yakuza 1 remake (Japan)
-Yakuza 6 (Japan)
-Project Diva Arcade
-Project Diva X
-Valkyria Chronicles 1 remake
-Valkyria Azures Revoultion
-PSO2 (PS4 Edition)
-Dawn of War: Warhammer 40k (Heavily rumoured.)
-Halo Wars 2

Probably some I've forgotten.

[FlareHabanero]

Well next year is suppose to host several anniversaries. Sonic, Puyo Puyo, and Yakuza stuff are guaranteed I can say that. We already know that Yakuza 6 and Yakuza: Extreme are confirmed and the next Sonic trash is going to go back to roots yet again.

[JRcade19]

This is actually good news in my book.

Usually when Sega has anemic years like this they lose close to 70 million, so still pulling out a profit IMO is a much better sign of how the company is adapting.

[Tad]

Yeah, it's not a bad bit of business for this year. Especially as next year seems to be a much bigger one for them. That list in the OP is just from what we know off too.

[Nirmugen]

Pachinko and Pachislots sales/profits are diminishing but digital sales have stayed strong.
So, this is the first that Games are gonna make almost the same amount of money as the big buck of the Sega-Sammy division. Maybe SEGA could be potentially the best gamble for the company and become the big project investment? I don't know how but it's possible....

[Tad]

Here's a thought, with Pachinko and Pachislots fading, is SEGA just cleverly moving into the next iteration of it with smartphone games? They both have very similar qualities about them. Short burst plays, spend a couple of quid (dollars) to continue etc.

[Trippled]

Here's a thought, with Pachinko and Pachislots fading, is SEGA just cleverly moving into the next iteration of it with smartphone games? They both have very similar qualities about them. Short burst plays, spend a couple of quid (dollars) to continue etc.

Sammy has had pachinko/pachislot mobile game for a while.

[Tad]

Sammy has had pachinko/pachislot mobile game for a while.

I'm not just talking about them though. I mean the whole arcade style system. Its very similar to the smartphone market where you feed money into a game to keep playing etc.

[EnternalHope]

Pachinko and Pachislots sales/profits are diminishing but digital sales have stayed strong.
So, this is the first that Games are gonna make almost the same amount of money as the big buck of the Sega-Sammy division. Maybe SEGA could be potentially the best gamble for the company and become the big project investment? I don't know how but it's possible....

They already are. Sammy Corp is moving towards Mircotransactions, Casino Slots, Ticket Dispensers, Redemption Machines & Prize Machines.

Sega Networks is currently the most profit division of SEGA.

[Trippled]

I'm not just talking about them though. I mean the whole arcade style system. Its very similar to the smartphone market where you feed money into a game to keep playing etc.

Yeah, Sega has been behind the mobile market since inception. Also one should differentitae between pachinko/pachislot and arcades...two different things

They already are. Sammy Corp is moving towards Mircotransactions, Casino Slots, Ticket Dispensers, Redemption Machines & Prize Machines.

Sega Networks is currently the most profit division of SEGA.

Sammy only does pachi aimed at the domestic market...everything else covers Sega.

[EnternalHope]

Yeah, Sega has been behind the mobile market since inception. Also one should differentitae between pachinko/pachislot and arcades...two different things

Sammy only does pachi aimed at the domestic market...everything else covers Sega.

Darts Live, is also under the Sega and Sammy name.


I already know the difference because Panchinko Machines and Arcades.

[Trippled]

Darts Live, is also under the Sega and Sammy name.

Darts Live is under Sega.

The other response was aimed at Tad.

[EnternalHope]

Darts Live is under Sega.

The other response was aimed at Tad.

http://appft.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&p=1&u=%2Fnetahtml%2FPTO%2Fsearch-bool.html&r=2&f=G&l=50&co1=AND&d=PG01&s1=Sega.AS.&OS=AN/Sega&RS=AN/Sega


It was formerly licensed under the label Sega Sammy Creation,Inc(now Darts Live,Co,Ltd) and managed under SEGA Entertainment Corp,Ltd.
http://www.bee-style.jp/kabura/


My bad regarding your other response.

[Team Andromeda]

To me this is more than expected, this year SEGA have been pretty bare, they've pushed almost all games into 2016. Thankfully next year SEGA/Atlus will release some potential big hitters.

You're a sound guy and nice person but you're taking being a fan of corp to new heights.


We've have a new Yakuza and Football Manager game ever year along with new Project Diva and even with them SEGA profits aren't that great . So out of that list you posted I can't see it making a major difference to profits, over than Sonic . SEGA needs to become more of a player in the console market again along with mobiles .. that is where the money is these days. 

[Sharky]

You're a sound guy and nice person but you're taking being a fan of corp to new heights.


We've have a new Yakuza and Football Manager game ever year along with new Project Diva and even with them SEGA profits aren't that great . So out of that list you posted I can't see it making a major difference to profits, over than Sonic . SEGA needs to become more of a player in the console market again along with mobiles .. that is where the money is these days. 

SEGA's profits don't really concern me, I only want them to do well so I can have more games I like and I like all the games I listed besides FB Manager and Project Diva... But I know other people on this forum do.

I don't think me being happy with the line up is a problem for anyone... Perhaps you're just too negative.