Game sales fall "below expectations" at Sega but revenue remains steady

Game sales fell "below expectations" at Sega during the first quarter of the fiscal year.

As highlighted in the company's fiscal report for the quarter ended June 30, 2023, combined unit sales of both new and repeat titles fell to 4.87 million units from 5.14 million units.

Despite that downturn, Sega noted that "some operating expenses were not incurred" allowing it to deliver a "steady performance" overall.

As a result, the Consumer sub-segment of Sega's Entertainment Contents division, which houses its video game operations, generated sales revenue of 34.7 billion yen ($242.2 million). That's a slight increase on the 33.7 billion yen ($235.2 million) reported during the same period last year.

Sega hopes franchises like Total War, Persona, and Like a Dragon can deliver

There were some other highlights for Sega, with Sonic Origins Plus and Etrian Odyssey Origins Collection selling a combined 740,000 copies during the quarter.

Sega's existing slate of free-to-play titles also "performed in line with expectations," with the company singling out Project Sekai Colorful Stage! feat. Hatsune Miku and One Piece Bounty Rush for praise.

Looking ahead, Sega intends to "enhance the operation of existing [free-to-play] titles" and boost full game sales by launching new titles "in earnest" during the second half of the fiscal year, pointing to a release slate that includes Total War: Pharaoh, Sonic Superstars, Like a Dragon Gaiden: The Man Who Erased his Name, Hyenas, and Persona 5 Tactica as cause for optimism.

Sega's business forecast remains unchanged and the company expects its Entertainment Contents segment to deliver sales of 305 billion yen by the end of the fiscal year in March 2024. Of that total, 205 billion yen is expected to be generated by the Consumer sub-segment.