Sega Sammy: Shifting towards digital games

Sega Sammy holdings, parent company of Sega, Sammy Corp. (mostly known for the Guilty Gear games) and TMS Entertainment, released today its consolidated financial statements. Net sales for this fiscal year (ended March 31st, 2015) reached ¥354,921 million (-6.1% vs previous fiscal year), with an operating income of ¥17,609 million yen (-54.3% vs previous fiscal year). This brings Sega Sammy a net loss of ¥11,258 million (vs a net profit of 30,721 million), mostly due to tax assets.

The group’s strategy for 2016 will reflect how the market is currently behaving: demand expanded for digital games toward social networking services (SNS) while the market for packaged games softened. This is why “the Group positions the field of digital game software for smartphones and online PC games as the center of growth and will promptly shift management resources from fields such as packaged game software and amusement machine”.

Sega Sammy will launch new digital titles such as:

  • Hortensia Saga
  • Monster Gear
  • Chaos Dragon
  • Phantasy Star Online 2

Regarding packaged games, “the Group is working on rationalization mainly in overseas”. Sega Sammy will release some new titles including Persona 5 and will initiate transitions to the digital market for other Intellectual Properties (IPs).

Expected operating results for next year are:

  • Net sales: ¥420,000 million
  • Operating income: ¥ 25,000 million
  • Profit: ¥ 19,000 million

So, what is your view on Sega Sammy’s strategy in the video game market?

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Source: Sega Sammy

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