Sega's financial report for Q3 FY24 indicates that the company is experiencing sluggish sales in its premium game titles while finding success in the movie sector. Read on to learn more about the findings in Sega's report and its revised financial forecast.
Sega Struggles with Game Sales
Overall Net Sales for Games Decreased by 7.95%
In its "Notice of Revision of Operating Results Forecast", Sega acknowledged the underperformance of its premium game titles, including Sonic Superstars, Endless Dungeon, and Total War: Pharaoh, during the holiday sales season. As a result, Sega revised its consolidated operating results forecast for the fiscal year ending March 2024, with net sales expected to decrease by approximately $73.5 million, from 474,000 units to 463,000 units overall.
However, Sega optimistically noted in its full financial report, "Expectations for the growth of the game market continue as the diversification in terms of service provision resulting in an environment having been created in which content and services can be delivered globally over the long-term, regardless of device or platform."
Regardless, Sega's game sales declined by 7.95% compared to the same period in the previous fiscal year despite the launch of major titles over the past months such as Sonic Superstars, Like a Dragon Gaiden: The Man Who Erased His Name, and Persona 5 Tactica.
Movie Sector Performing Well
On the brighter side, Sega's movie sector showed promising performance, with net sales from animation increasing by 4.2% compared to the previous fiscal year. Sega noted, "Net sales in this segment [animation, video production, distribution, etc., and toys] were ¥219,316 million (approximately $1.465B)."
Continuing this trend, Sega announced last week its partnership with Paramount Plus for a Knuckles spinoff movie series. The movie will star Hollywood actors including Idris Elba and Ben Schwartz, and Sonic voice-actress mainstay, Colleen O’Shaughnessey.
Source:
SEGA: Notice of Revision of Operating Results Forecast
SEGA: Consolidated Financial Report
Sega Reports 'Sluggish' Sales Of Sonic Superstars And Other Major Titles
Knuckles is ready to box in new trailer for his Paramount Plus spinoff series
