Firm to strengthen operations of existing free-to-play titles after sales fall "slightly short of expectations"

Sega Sammy reported a 17.3% increase in net sales for its first quarter. The Entertainment Contents segment, which includes games, exceeded expectations at ¥68.4 billion ($432 million).

The company noted that while "the launches of major new titles will be weighted toward the third quarter onwards, net sales in each segment were generally in line with expectations, and operating income and adjusted EBITDA exceeded expectations."

Full-game sales and revenue from licensing and Rovio performed well, while free-to-play games "fell slightly short of expectations," and the company plans to "strengthen operations of existing titles."

Sega noted that key full-game titles for this fiscal year will be "launched sequentially" from Q3 onward, including Stranger Than Heaven and Persona 4 Revival, releasing in January and February next year, respectively.

"Leading indicators such as the number of wishlist registrations and related video view counts are favourable," the company said. "Sega will continue efforts to increase anticipation ahead of these releases to maximise sales."

Sega expects licensing revenue in this segment to grow in the coming quarters, supported by anniversaries, adaptations of key IP, and new Rovio titles.

The company recorded a $200 million impairment loss on Rovio earlier this year, following its 2023 acquisition of the Angry Birds developer.

Sega CEO Haruki Satomi attributed the write-down to "rapid changes in the market environment and other factors," as well as the inability to fully implement Rovio's Beacon technology in Sega mobile titles.

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