Sega Expects Growth for Console Games in Japan Thanks to Current Gen Consoles; Posts Profits
Sega just released its financial results for the six month ended on September 30th, and the company ended the period with numbers in the black, as you can see in the table below.
Net sales were slightly lower than the same period last year, but profits were 964 million yen, compared to nearly three billion yen in losses in the first half of last fiscal year.
Interestingly, Sega expects an expansion of the console market in Japan, thanks to the expansion of the new generation of consoles.
“Regarding the environment of the Entertainment Contents Business, while the market for digital games for smart devices continues to grow at a moderate pace in Japan in line with the spread of smartphones, competition is intensifying. With regard to the packaged game software market, despite the persisting harsh market environment, expectations of expansion are rising in Japan in line with the penetration of new-generation hardware. As for the market for amusement centers and amusement machines, which is shrinking, initiatives to expand the player base are required.”
We also get a detailed analysis of performance for digital and packaged games:
“With regard to the Entertainment Contents Business, in the field of digital game software, which the Group positions as the growth driver, sales of the existing titles for smart devices, such as “CHAIN CHRONICLE –Kizuna no Shintairiku,” “Puyopuyo!! Quest” and “PHANTASY STAR ONLINE 2,” launched over three years ago, were robust. In addition, new titles, such as “Hortensia SAGA,” “MONSTER GEAR” and “Sen-no-kaizoku” got off to a flying start, and the lineup of titles was expanded steadily. However, performance in the digital game software field in the first half of the year ending March 31, 2016 were below the initial plan because the Group made a strategic revision to the timing of the launch of titles in response to intensifying competition and also because certain titles were less well-received than expected.
The number of titles distributed domestically in the field of digital game software (free-to-play types) was 48 as of the end of September 2015.
In the packaged game software field, sales amounted to 3,280 thousand copies, which was lower than the level in the same period of the previous fiscal year due to the lack of sales of major titles. However, repeat sales of titles that were launched in the previous fiscal year or earlier have been strong, mainly in overseas markets.”
Lastly, Sega forecasts to end the fiscal year on March 31st with a profit of 19 billion yen.