Sega Sammy has published its financial results for the nine months ended December 31, 2024, during which it announced the cancellation of Football Manager 2025.
The Sports Interactive title was delayed last October, with Sega reaching the decision due to difficulties in “ensuring significant product quality expected by the March release.”
Overall, Sega experienced a decline in net sales and profit. However, it saw a 88% increase in profit for its Entertainment Contents division which it partly attributed to the success of Sonic the Hedgehog 3.
Here’s what you need to know:
The numbers:
For the nine months ended December 31, 2024
- Net sales: ¥322.3 billion ($2.1 billion, down 8.1% year-on-year)
- Operating income: ¥43.7 billion ($287.9 million, down 20.8% year-on-year)
- Ordinary income: ¥49.4 billion ($325.4 million, down 13.9% year-on-year)
The highlights:
Sammy Sega attributed part of its decline in net sales and operating income to the sale of overseas developer Amplitude Studios in November 2024. The firm recorded a loss of approximately ¥6.1 billion ($40 million) following a management buyout.
However, Sega saw strong performance in its Entertainment Contents segment, which includes games, with net sales up 8.2% to ¥238.6 billion ($1.5 billion) and profits rising 88% to ¥37.5 billion ($246.9 million).
There were two major launches during this period: Metaphor: ReFantazio on October 11, 2024, and Sonic X Shadow Generations on October 22.
Metaphor: ReFantazio is currently “exceeding expectations,” while Sonic X Shadow Generations has “steadily increased its sales” and has surpassed two million units in global cumulative sales.
During Q3, Sega announced the cancellation of Football Manager 2025, which was scheduled to launch in March. It recorded a “loss associated with a write-down of inventory assets” as a result.
The decision to cancel the title was made “because, despite aiming the development for significant advancements in the standard series” it “was determined that it would be difficult to ensure significant product quality expected by the March release.”
Development assets from Football Manager 2025 will instead be used in its sequel.
The Sports Interactive title was delayed last October to give the team “more time to deliver the best possible experience for this first instalment in a new era of Football Manager.”
Elsewhere, Sega saw particular success in its animation division following the release of Sonic the Hedgehog 3 on December 20, 2024.
The movie has since grossed $460 million worldwide, making it the second-highest-grossing video game film of all time.
Sega described the Sonic media franchise as a key part of its transmedia strategy. We discussed the future of this endeavour with its head of global transmedia Justin Scarpone last year.
As a result of these factors, Sega has revised its forecast for its Entertainment Contents segment. Net sales for the FY were expected to be ¥335 billion ($2.2 billion), and are now ¥320 billion ($2.1 billion).
In the consumer division of Entertainment Contents, net sales reached ¥164.8 billion ($1.08 billion) and operating income reached ¥34.6 billion ($227 million).
Sales of new games in the nine months ended December 2024 reached 4.7 million units, compared to 5.2 million during the same period last year. Catalogue titles sold 20 million (up from 13.8 million), while full game sales totaled 24.8 million units (up from 19.1 million).
Looking ahead, Sega has revised its outlook for FY25. It previously expected net sales of ¥445 billion ($2.9 billion) compared to the previously anticipated ¥425 billion ($2.8 billion). As for operating income, it was forecast to be ¥45 billion ($296.5 million) and is now forecast to be ¥46 billion ($303.1 million).
