Sega Adjusts Sales Projections Following Cancellation of Soccer Supervisor 25

Image courtesy of Sports Interactive

Sega has clarified the sudden cancellation of Soccer Manager 25 (FM25) and the postponements of two new free-to-play titles due to anticipated sales falling short of its previous financial projections.

In its Q3 analysis presented in its latest financial report, Sega noted that its Leisure Contents sector remains “robust,” with both sales and profits rising compared to the previous year.

Specifically examining the Video Game subsection (which encompasses Sega’s gaming operations within the Leisure Contents), sales rose to 164.8 billion yen ($1.1 billion) from 149.1 billion yen ($983.3 million).

Operating profit in that division also increased to 25.1 billion yen ($165.6 million) from 11.6 billion yen ($76.5 million) for the same period.

Sega emphasized that this growth was largely driven by consistent catalog sales of titles such as Persona 5 Royal (Remaster) and Unicorn Overlord. They also praised recent launches Sonic x Shadow Generations and Metaphor: ReFantazio, which have now surpassed 2 million and 1 million sales, respectively.

Metaphor, in particular, is currently exceeding sales expectations.

Sega optimistic about gaming industry prospects despite notable cancellation

In spite of these positive indicators, Sega has revised its Individual sales forecast downwards following the FM25 cancellation, although they anticipate overall earnings will now exceed projections thanks to resilient digital and catalog sales.

“Due to the project cancellation, the Group incurred a loss in the third quarter due to work-in-progress asset write-downs,” Sega noted.

“This decision was made because, while we aimed for significant improvements in the overall series with updates and the addition of new elements for the UI and graphics, it was determined that producing the desired quality by the March release would be challenging.

“By redirecting development resources towards its sequel, the Team will persist in its efforts to create and promote higher-quality products.”

Sega also reported a significant loss of approximately 6.1 billion yen in the second quarter following the divestiture of Amplitude Studios through a management buyout.

Looking ahead, the company forecasts full-year net sales of 320 billion yen (down from 335 billion yen) and operating income of 44 billion yen (up from 40 billion yen) within its Leisure Contents segment.

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