SEGA assured that the changes they made would help the company and it doesn’t seem they are lying. SEGA has reported increased profits for the first quarter of the current fiscal year. Sadly the consumer business is still reporting losses, however SEGA has really reduced the losses year-over-year. Sadly the losses are contributed to the lack of demand for home video games in the U.S. and Europe.
SEGA only shifted 1.34 million units this quarter, which is down 42.5 perfect compared to 2.33 million year-over-year. SEGA has also stated that their free-to-play game Kingdom Conquest has been downloaded over 3 million times. No idea how many people opted for buying upgrades and other pay-to-use items.
SEGA’s Pachinko and amusement machine businesses saw an increase in sales and profits. These increased sales helped SEGA recoup what they lost in the consumer business. For this quarter (ending June 30th) SEGA’s consumer business posted revenue of $192.9 million, a decrease of 6.9% year-over-year. This will mean that they had operating losses of up to $19.9 million, which is lower than their operating loss of $49.3 million last year.
As for the whole company, they saw a revenue of $894.2 million, up 7.1% compared to $834.8 million year-over-year. They profited $32.5 million when all is said and done, which is great compared to the same quarter last year when they lost 28.4 million. So here is to the future.
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Looking forward to the digital future!
More arcade perfect ports!
More Sega Classics with the HD/Online treatment
More Original games like Renegade Ops
Sign me up!
I believe that SEGA going digital was inevitable. Just like what EA said in their announcement on becoming a fully digital company.
I wouldn’t mind more digital games from SEGA but no more lush artwork to own on the shelf is very sad. 🙁
Hopefully they can get back on their feet within 5 years and do an even spread of digital and retail. 🙂
I don’t think anyone is gonna be doing an even spread of digital and retail in five years. I think boxed games will eventually be a very niche product, kind of like how there’s a small market for new vinyl records these days, but nothing like it once was with massive chain stores dedicated to stocking them.
Everyone is going to leave the retail business pretty soon, trust me. Boxed games will be ceased in 5 years, guaranteed.
I think they should just abandon the current-gen consoles all together and start making Dreamcast games again! 😉
This is good news. I’m kind of boggled that there were lack of sales for us and eu.
With the tegra 3 out, I’m sure we should be seeing some tablet games from SEGA? Including of course, Phantasy star online 2 coming to the west will surely be something not to miss.
I would love to see border break on PC here in the west, actually would love to see more SEGA titles for pc, period.
Here is to a bright future, and I am along for the ride. I will be including my friends.
Frankly I have mix feelings on this report. It’s good that the company as a whole made profit, but the loss in the gaming division really cringes me. Well at least they did say in a other report that they will likely have return sales in the Holiday season http://www.computerandvideogames.com/360792/sega-business-returns-to-profit-but-game-losses-continue/. And SEGA is at least not alone by leaving the retail business, EA made that same announcement last month, but it is actually a good thing if you look at it because it at least kept the company financially healthy in a way. So it is clear SEGA does have a future but the question is how is it going to work.
Like I keep saying:
SHUT UP AND TAKE MY RINGS, SEGA!
SEGA is so amazing, they’re the only publisher I like so much!
I am sure with Sonic Adventure 2 digital re-release, several other digital releases, and Sonic & all-stars Racing Transformed all heading around the quarter, I am definitely sure they will improve by the end of this year as they said in computerandvideogames.com report.