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Sega's Earnings Up Despite Tough Overseas Market

Mario & Sonic once again the company's top selling title for the year.

 

Sega Sammy Holdings shared today its annual earnings report for the year ended March 31, 2010. As a whole, the company saw a 10.4% drop in sales to ¥384,679 million but a 399% increase in operating income to ¥36,712 million.

Filtering out all the pachinko, and you come to the core "Sega" gaming businesses, which are divided into consumer business and amusement machine business.

In its consumer business, the company saw a 7.5% drop in sales to ¥121,838 million yen. This was accompanied by a return to profitability. The division made ¥6,332 million this year. Last year, it posted a loss of ¥941 million. The year before that, it lost ¥5,989 million.

The increased earnings came despite lower overall game sales. Sega sold 26.75 million pieces of software, down from last year's 29.47 million and even the 26.99 million of the year before that.

Top selling titles included:

  • Mario & Sonic at the Olympic Winter Games (Wii, DS): 6.53 million
  • Aliens vs. Predator (PS3, X360, PC): 1.69 million
  • Bayonetta (PS3, X360): 1.35 million
  • Sonic & Sega All-Star Racing (PS3, X360, Wii, DS): 1.07 million
  • Phantasy Star Portable 2 (PSP): 600,000
  • Yakuza 4 (PS3): 560,000

Europe accounted for 12.38 million units software sold. North America sold 10.55 million and Japan and other parts of the world made up 3.82 million.

In its analysis of these results, Sega Sammy said that while it managed to focus its title count and create an efficient development environment, it faced a tough market overseas, resulting in the closure of its North American Secret Level, Inc. subsidiary. Additionally, sales were affected by a delay in the release of some titles to the current term.

For this year, Sega promised increased development efficiency brought about by focusing the number of titles for overseas markets. It expects a drop in software sales to 16.96 million units, split 7.28 million for Europe, 6.29 for North America and 3.38 for Japan and other territories.

In its amusement machine business, sales were down 26.8% to ¥47,925 million, but earnings were up 3.0% to ¥7,094 million.

Popular titles included:

  • World Club Champion Football Intercontinental Club Series: ¥4.2 billion sales
  • Sega Network Taisen Mahjong MJ4 Series: ¥3.8 billion sales
  • Border Break: ¥3.3 billion sales
  • Star Horse 2 Series: ¥2.8 billion sales
  • Sangokushi Taisen 3: ¥1.8 billion sales

Sega Sammy attributed the drop in sales for this division to the lack of large scale releases. Border Break was listed as a strong performer.

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