Sections

Sega posts £17 million quarterly loss, sees sales fall

Friday, 29th July 2011 15:03 GMT By Stephany Nunneley

Sega has posted its quarterly financials for the period ending June 30, 2011, recording a loss of ¥2.22 billion (£17 million) compared to a profit of ¥7.03 billion (£55.4 million) in the same period last year.

Sega Sammy’s group sales net sales dropped 28.5 per cent to ¥65.33 billion (£514.9 million)

The firm’s game division saw sales drop 22.3 percent to ¥16.2 billion (£127.7 million).

Sega said part of the reason for the loss was due to settlement payment for patent licensing, along with a “generally weak,” demand in the US and European markets which saw sluggish personal consumption.

Major titles for the overseas markets including Virtua Tennis 4 and THOR: God of Thunder, along with the major Japanese titles such as Yakuza: OF THE END were launched. Although domestic sales generally remained solid, in the overseas markets, sales of the new titles remained slow as affected by the adverse market condition. A

As a result, Sega’s game group sold 700,000 video game copies in the US, 1.02 million copies in Europe and 600,000 copies in Japan and other regions, for a total of 2.33 million copies, which is below the performance level of the same period in the previous fiscal year.

In the mobile phone, smartphone and PC content business, iOS title Kingdom Conquesta was downloaded 1.3 million times, while titles for social and smartphone such as SAMURAI BLOODSHOW also launched. Meanwhile, the pay-per-use service of 777 Town remained solid.

Sega said it needs to “adapt to changing business environments,” in which the market demand for “new content geared to social networking service and smartphone” is rapidly expanding.

Thanks, Edge.

Latest

8 Comments

  1. Clupula

    That’s an incredibly ominous final sentence (not the “Thanks, Edge”).

    #1 3 years ago
  2. DSB

    Sega said it needs to “adapt…*snip*

    MEGATON!

    #2 3 years ago
  3. Erthazus

    Sega just need to fuck itself and release a proper sequel to PS3 and 360: VALKYRIA CHRONICLES

    not a PSP spin off. Original VC sold 1 million units WW.

    #3 3 years ago
  4. ManuOtaku

    #3 i agree with you but i thank them enough for Yakuza and for supporting bayonetta and vanquish at least they support new unknown ips, thats something most of the biggest guns doenst do nowadays, of course with their respective exceptions.

    #4 3 years ago
  5. Maximum Payne

    @4 Yea because they sold so well…

    #5 3 years ago
  6. ManuOtaku

    #5 Sadly no , they dont but they are great games nontheless IMHO

    #6 3 years ago
  7. McLovin85

    I’m glad they take risks with newer IP which is more than I can say for quite a few other publishers…

    #7 3 years ago
  8. Clupula

    What Sega should do, quite honestly, is release VC2 & VC3 as a PSP Remaster collection for PS3. The HUGE drop in sales between VC1 & VC2 should tell them something about where the audience for the game is (The first one sold something like 600,000 in America, while the second I don’t think reached 100,000). It’s also why they don’t seem to have any interest in localizing VC3.

    Putting the series back on PS3, while not having PS3 owners miss out on those two games would be their best move.

    #8 3 years ago

Comments are now closed on this article.