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Sega's healthy recovery down to digital game sales
Sega's healthy recovery down to digital game sales
February 7, 2014 | By Mike Rose

February 7, 2014 | By Mike Rose
More: Console/PC, Business/Marketing

Although Sega Sammy's last fiscal year was troublesome, the company continues to show great signs of recovery this year, thanks in part to demand for its digital games.

Packaged games continued to show decline for Sega, with newly-released games like Football Manager 2014 and Sonic Lost World selling poorly at retail. The former sold 680,000 copies at retail, while the latter only managed 640,000 sales.

However, the company's digital game sales on smartphones and PC were favorable and easily helped to balance out retail. Phantasy Star Online 2, Puyopuyo!! Quest and Chain Chronicle were all hits for Sega.

Sega's Pachinko business also saw a notable increase in sales and profits thanks to strong performances from Pachislot Eureka Seven 2 and Pachislot Juoh, although its Amusement Machine business wasn't so hot, recording a swing to losses.

For the nine months ending December 31, 2013, Sega's Consumer business, which houses its video game efforts, recorded revenues of 72.9 billion yen ($714.2 million), up 19.7 percent year-over-year, and operating income of 2.8 billion yen ($27.3 million), up 436.7 percent year-over-year.

Overall, Sega reported revenues of 304.0 billion ($3.0 billion), up from 202.0 billion ($2.0 billion) year-over-year, and profits of 44.3 billion ($434.1 million), up compared to 3.1 billion ($30.1 million) year-over-year.

Looking to the full fiscal year, Sega estimates that it will see revenues of 485 billion yen ($4.8 billion), up 51 percent year-over-year, and profits of 47 billion yen ($460.2 million), up 41 percent year-over-year.

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Ujn Hunter
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I can't help but think that their "Packaged" game sales might be better if they released something other than "Sonic Game #83". In fact, I bet if they had swapped the Digital releases and "Packaged" releases then their "Packaged" game sales would be the better of the two. Sadly I won't be able to help Sega in their quest for a healthy recovery unless they start releasing some good "Packaged" games.

Justin Webb
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I wonder if the success of PSO2 will mean localization for the West. If so, they may have to change their Pachinko style cash shop system for something more traditional.

Christa Morse
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PSO2 is in English and ready to go but Sega just refuses to release it. No idea what stupidity is involved behind the scenes there. The lag between events for the JP and US/EU version of Phantasy Star Universe was pathetic, I doubt Sega's improved their localization workflow since PSU.

PSO2's monetization is one of the best examples in the industry IMO; the game is easy to enjoy without paying, but a premium subscription provides substantial value without feeling "pay to win" in any way whatsoever.

Proof the game is in English but Sega of Japan just hates the West:

Jonathan Murphy
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They could've put PSO2 on the PS4, and Xbone at launch to ensure really good sales! What was their competition? Monster Hunter, PSO2 on PC would've been a huge sales boost. Instead they talk about mobile. Capcom, Nintendo, Sega think cell phones and tablets will save them? I have yet to see how that plan makes any sense.