Sega has reported “weak” game sales for its latest financial quarter, with its results forecast shifting down as a result. The overall quarter remained fairly strong for the company, due to growing year-on-year profits and sales for its Pachislot and Pachinko Machines, but it does appear its recent game releases undersold on expectations.
While specific games were not named as disappointments, it’s worth noting Sega’s last financial quarter included releases for some of its major franchises: Sonic Superstars, Like a Dragon Gaiden: The Man Who Erased His Name, Persona 5 Tactica, and Football Manager 2024. These games all received positive critical reception, but it appears this was not enough to buoy significant sales success in the short term.
Notably, Sega is not the only company to deal with similar issues in recent times – as several other major studios have also reported downturn on game sales in the last financial quarter, likely as a result of tough economic conditions worldwide. With skyrocketing prices for groceries and basic living essentials, luxury goods like video games will realistically become less of a priority for consumers.
To contend with this downturn, Sega is reportedly undergoing structural reform, with the company now reviewing its medium-term lineup, and looking to optimise fixed expenses for potential efficiency gains. Already, the company has announced layoffs at its American branch, although it’s unclear if more layoffs will follow.
Whatever the case, it does appear Sega is more hopeful about its next financial quarter – which is already on track for success. As noted, Q4 2024 will include results pertaining to the releases of Like a Dragon: Infinite Wealth and Persona 3 Reload, both of which have already reached 1 million unit sales worldwide, becoming the fastest sellers in their respective franchises.
Despite Sega’s “weak” gaming sector results this financial quarter, it’s expecting a significant shift in the next reporting period. Stay tuned for more from Sega, and any developments from its restructuring plans.