Sega Profits in the Black While Sales are Down

sonic the hedgehog 11-02-15-1

Sega has shared their operating results for the past six months, which officially ended on September 30th of this year.

Their sales were lower than the same time as last year, however the company made 964 million yen in profit due to a less aggressive focus on research and development. In comparison, last year they reported about 2.8 billion yen in losses.

The company also shared a forecast of their operating results, which end on March 31st of next year. Sega also went on to talk up pressure on the Japanese economy, the downswing in China’s economy, and more:

During the first half of the fiscal year ending March 31, 2016, the gradual recovery of the overall Japanese economy continued despite a lackluster performance in certain respects, as evidenced by such developments as improvement of both corporate earnings and the labor market due to the effects monetary and fiscal policies. With regard to individual consumption, in general, consumption levels have not fallen owing to steady improvements in both the employment environment and personal incomes. However, attention should be paid to the risk of downward pressure on the Japanese economy, caused by factors such as a downswing in China’s economy and other overseas economies, and fluctuations in financial and capital markets. Thus, a full recovery of the economy will require more time.

The publisher also remarked the upswing in pachislot and pachinko machines:

In this climate, with regard to the pachislot and pachinko industry, pachinko parlor operators have been cautious about replacing pachislot machines with new machines corresponding to the change in application of the model test procedure of pachislot machines by the Security Communications Association, which conducts model tests for pachislot and pachinko machines, and purchasing by parlors has tended to concentrate on titles with successful track records. Thus, replacement demand for new pachislot machines was relatively weak. On the other hand, replacement demand for new pachinko machines remained strong, centering on major titles. In order to revitalize the market going ahead, it is essential to develop and supply machines that are compliant with various voluntary regulations and capable of appealing to a wide range of players.

In the resort industry, thanks to an increase in the number of foreign visitors to Japan spurred by the weak yen, an upward trend in the hotel occupancy rate is still evident and revenues of amusement parks and theme parks continue to exceed the previous year’s level. With a view to establishing Japan as a popular tourist destination, a bill concerning the promotion of the establishment of specified integrated resort areas (Integrated Resort Promotion Bill) was submitted to the Diet.

Ever since purchasing Atlus, Sega Sammy has been in the process of a massive restructuring – and while Atlus had a presence at this year’s E3, Sega corporate did not.

Sega has previously noted their acquisition of Atlus benefitted the company in more ways than one, as they’re looking to focus on producing the kind of high-quality titles that Atlus is known to produce.

Image source: inamberclad

Brandon Orselli


Big Papa Overlord at Niche Gamer. Italian. Dad. Outlaw fighting for a better game industry. I also write about music, food, & beer. Also an IT guy.