In a recent financial report, Sega Sammy revealed its results for the fiscal year ending March 31, 2025. The company experienced an overall 8.5% decrease in net sales and a notable 16.8% drop in operating income. However, the entertainment division, which includes popular video games, showed a promising increase in ordinary income, rising from ¥30.8 billion in 2024 to ¥41.8 billion this year.

This uptick is attributed to robust sales of high-margin titles from its back catalog, boosted by the Sonic movies and strong downloadable content (DLC) sales, even amid the cancellation of the highly anticipated Football Manager 25.

Key Financial Numbers

For the fiscal year ending March 31, 2025, here are the figures that tell the story: - Net Sales: ¥428.9 billion ($2.89 billion), down 8.5% year-on-year - Operating Income: ¥48.1 billion ($323 million), down 16.8% year-on-year - Ordinary Income: ¥53.1 billion ($357 million), down 11.1% year-on-year.

Despite the setbacks, Sega noted that its new flagship titles have performed well, and repeat sales remained strong. The free-to-play segment met expectations, bolstered by solid DLC revenues, while favorable exchange rate fluctuations added an unexpected boost.

Exciting Titles and Future Plans

Sega is also on a creative upswing with the "steady expansion of IP value through transmedia development." Hits like Sonic x Shadow Generations and Metaphor: ReFantazio thrived, though specific sales numbers were not disclosed. One highlight: Sonic the Hedgehog 3 has raked in over $490 million globally at the box office.

Looking ahead, Sega plans to release several new titles, including Sonic Racing: CrossWorlds and Yakuza 0 Director's Cut. The company will also debut free-to-play games like Sonic Rumble and Persona 5: The Phantom X, which is set for launch in Japan this year after its 2024 success in China.

Additionally, Sega aims to enhance operations for both existing and upcoming titles at Rovio and remains committed to reviving its Football Manager series for a 2026 release, in addition to further developing its Total War franchise. Excitingly, a sequel to Alien Isolation is also in the pipeline.

Reviving Legacy IPs and Strategic Growth

Sega is taking steps to bring back beloved legacy IPs like Crazy Taxi, Golden Axe, and Jet Set Radio. The company is intensifying its focus on transmedia opportunities and global Game as a Service (GaaS) initiatives, while also investing in its “Super Game” portfolio and expanding its animation IPs. A particular goal is to reignite its European markets through Football Manager and Total War.

While the recent increases in US tariffs have had a "minimal" impact so far, Sega cautions that they could potentially affect physical game sales moving forward.