While you can’t say the company is in trouble by any stretch of the imagination, the last few financial reports from Sega has been somewhat on the soft side. While overall revenue has risen, profits have slumped recently. While it’s hard to say that trend is over completely, they have a good start to this year thanks to the successful releases they’ve managed to put out.
As seen in the company’s Q1 2019/20 quarterly presentation, revenue has again increased ¥72.7 billion up from ¥68.8 billion, but it’s the profit margins that’s soared with an increase from ¥0.9 billion to ¥3.4 billion. The return to form has been driven by packaged video games, which saw a significant Year over Year increase. They also predict a continued increase with the upcoming release of games like the 2020 Olympics releases, a new Yakuza, Persona 5 Royal, and the new Mega Drive mini. Almost all of the credit goes on the back of the video games, as the other entertainment and gambling investments came in relatively soft in comparison.
“With regard to the packaged game software market, in the market for hardware of home video game consoles, are expanding, mainly in overseas, for the expansion of the game software sales market due to the growing penetration of current-generation video game console hardware,” the company said. “In addition, there is growing expectation that the overseas digital sales market will expand with the launch of new platforms and services.”
The company definitely seems to be on quite the upswing, at least at the moment. You never can know, but hopefully the Japanese publisher can continue to keep the momentum for the foreseeable future.