Sega Reports 8% Revenue Decline, Totals $2.1 Billion

Sega Sammy has disclosed its financial results for the nine months ending December 31, 2024, during which it announced the cancellation of Soccer Manager 2025.

The Sports Interactive title faced a delay last October, with Sega making this decision due to difficulties in “ensuring notable product quality anticipated by the March launch.”

Overall, Sega experienced a decrease in net sales and profitability. However, it recorded an 88% increase in earnings for its Entertainment Contents division, which it partly attributed to the success of Sonic the Hedgehog 3.

Here are the key points:

The figures:

For the nine months ending December 31, 2024

• Net sales: ¥322.3 billion ($2.1 billion, down 8.1% year-on-year)
• Operating profits: ¥43.7 billion ($287.9 million, down 20.8% year-on-year)
• Net profits: ¥49.4 billion ($325.4 million, down 13.9% year-on-year)

The highlights:

Sega Sammy attributed part of its decrease in net sales and operational earnings to the sale of overseas developer Amplitude Studios in November 2024. The company faced a deficit of roughly ¥6.1 billion ($40 million) following a management buyout.

Conversely, Sega saw strong performance in its Entertainment Contents division, which includes video games, with net sales rising 8.2% to ¥238.6 billion ($1.5 billion) and profits increasing 88% to ¥37.5 billion ($246.9 million).

There were two major releases during this period: Metaphor: ReFantazio on October 11, 2024, and Sonic X Shadow Generations on October 22.

Metaphor: ReFantazio is currently “exceeding expectations,” while Sonic X Shadow Generations has “steadily increased its sales” and has surpassed two million units in global cumulative sales.

At the end of Q3, Sega announced the cancellation of Soccer Manager 2025, which was planned for March. It reported a “loss related to a write-down of inventory assets,” which was the reason for this decision.

The choice to cancel the title was made “because, despite aiming for significant advancements in the quality of the series,” it “was determined that it would be challenging to ensure the notable product quality anticipated by the March launch.”

Resources from Soccer Manager 2025 will instead be utilized in its sequel.

The Sports Interactive title was postponed last October to provide the team “more time to deliver the best possible experience for this initial installment in a new era of Football Manager.”

In other news, Sega experienced particular success in its animation division following the release of Sonic the Hedgehog 3 on December 20, 2024.

The film has since grossed $460 million worldwide, making it the second highest-grossing video game movie of all time.

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