Sega reports profits up 400 percent, digital delivers

After a rough patch, Sega Corporation parent Sega-Sammy Holdings recorded a robust 12.9 billion yen (approximately $131.8 million U.S.) in profits between April and the end of June [PDF], an increase of 408 percent over the same period in 2012. Net sales were also up by 29.6 percent to 90.7 billion yen ($923.6 million), propped up considerably by digital. Japan-only smartphone title Puyopuyo!! Quest surpassed 2 million downloads as of June, while Phantasy Star Online 2 for PlayStation Vita passed 500,000 copies from combined packaged retail and digital downloads. Relic's Company of Heroes 2, despite only releasing toward the end of June, made a considerable showing as well, selling 380,000 copies at brick-and-mortar retail. In total for Sega's games division, net revenue for the quarter came in at 18.8 billion yen ($192.2 million), with an operational income of 39 million yen ($396,104). Although this is a meager showing compared to certain other publishers, it represents a solid turnaround for a flagging games division, one that has historically been a secondary business for Sega-Sammy (pachinko and slot machines comprise the bulk of the company's revenue). Sega-Sammy forecasted operational income for its overall business for the year to come in at 73 billion yen ($742 million).