| Mail |

You might also like: WoW Insider, Massively, and more

More Sites You Might Like

Sega Sammy financial posting shows weak US demand, losses

by Jessica Conditt on Jul 29th 2011 11:00PM

Sega Sammy Holdings posted weak financial results for the fiscal quarter ending June 30, including a net-profit loss of $28.1 million -- last year in the same quarter it posted a net profit of $89.6 million. Contributing to this was a 22.3 percent decrease in Sega's regular sales, bringing the entire company's operating loss to $49.9 million, which is 500 percent higher than last year's quarter.

Sega Sammy noted "generally weak" demand in United States and European markets as a major loss factor, citing "sluggish personal consumption" in the regions and the need to adapt its focus to social and smartphone gaming. Sega said Japanese sales remained strong and its iOS title Kingdom Conquest was downloaded 1.3 million times, while pay-per-use sales of the online pachinko service 777 Town "remained solid." This could mark a shift in Sega's operating tactics, so we'll be on the lookout for Sonic's Social Network App for Android and iOS later this year.

Via: Gamasutra
Source: Sega Sammy

Tags: financial, microsoft, mobile, nintendo, playstation, ps3, psp, sega, sega-sammy, sony, wii, xbox

Reader Comments (34)

I don't even know anything Sega has released in the past ye.....err, past few years.

@trinica

Total War: Shogun 2 is the only notable thing that comes to my mind, only because I been playing it the past couple of weeks

@trinica

Platinum Games

@trinica

bayonetta says hi.

@trinica
Yakuza 3 & 4 were also excellent (but yes, Sega doesn't have the greatest presence these days).

Valkyria Chronicles is arguably among the best things to ever come from SEGA.

I miss Guilty Gear. :(

Valkyria Chronicles says hello.

wtf is Sega Sammy?

@Flapjackal

It's basically two game studios that joined together in the past: Sega and Sammy.

Sammy, IMO, never had any strong hits, especially in the US. Most of their titles are forgettable, so no loss there. They tend to be more geared for the Japanese culture.

Sega is the actually sad part in all this.

@Space Cobra Sammy isn't a game studio, they specialize in pachinko and other things that are incredibly popular in Japan. They used to publish Arc System's games, but they never developed anything by themselves, as far as I know. And actually, by the time of their merger Sammy was the bigger company, financially.

I'd say Sonic Colors, Valkyria Chronicles 1 & 2, Yakuza 1-4, Bayonetta, Sonic's Ultimate Genesis Collection, Phantasy Star 0, Phantasy Star Portable 1 & 2, Phantasy Star Universe, and Vanquish are all noteworthy titles. I may or may not have missed anything, but I think that they've released some really solid titles over the past several years. Sure, they may not have had the release schedule of EA or Activision, but I think that that's actually a good thing. It just sucks that what they do release tends to get overlooked.

Dear Sega,
Stop making shitty games. Stop letting go of your talented developers- there's no good reason why Yu Suzuki and Yuji Naka aren't still making games for you, get them back... or rustle up some new talent, or something. Remember when you published those awesome games from Platinum? Those were all really good. Renew that contract if you can and keep releasing awesome games from those guys. Try to publish other good Japanese games while you're at it. Stop making Sonic games. It's just not working out. Follow this advice and you'll be on the road to success before you know it :D

@laser beams

4 things:

1. Sega should buy out Platinum Games, and possibly High Voltage (Conduit 2 is pretty good).

2. Sonic Colors was amazing, much better than Unleashed (in terms of gameplay, level design, music, and controls). It got rid of all the horrible glitches that plagued Sonic Adventure 1 and 2 and Sonic '06.

3. Sonic Rush was amazing.

4. Sonic Generations combines all the best things about the Sonic series (classic Sonic, speed, platforming, Green Hill Zone, branching level design, etc.) into one complete package. It's the best of all worlds!

@tendoboy1984 Oh god, I hope SEGA doesn't read this. If anyone buys out Platinum Games, especially a company with such a disastrous track record of managing internal studios, I'll blame you.

They seriously need to work on Shenmue 3 then. Oh, and let's hope Sonic Generations lives to the hype... that would do em well.

To begin with I didn't even know Sega-Sammy exists...

It's maybe my fault.

I don't think "net profit loss" is the correct way to put it. It should just be "net loss"

Net profit loss is like saying "net win lose"

@GuardianLegend2 A net loss has to be a loss of -something-, otherwise it's meaningless. So calling it Net Profit Loss is the proper way of saying they didn't make any profits after subtracting expenses from revenue. Since profit is whatever cash you have left after expenses.

@Faceless Troll
no, net loss is the way to say it.

@GuardianLegend2
i looked it up :P

Whoa, 777 town is a real site? I thought that was just some weird in-game thing in the Yakuza games. Not, you know, actual advertising.

Geez, did anyone turn a profit this past quarter? I'm pretty sure Capcom didn't (though their numbers were up overall from last quarter), Nintendo didn't (and hell doth freeze over), Sony computer entertainment didn't, Take Two didn't, and now Sega

@Theneverendingsoda

They tried reviving their reputation with all those attempts at rebooting Sonic, and botched it repeatedly. Since smaller, mobile games are the current industry trend for low investment/high return, this is a calculated move from a business perspective.

Basically Sammy bought 23% of Sega which was somehow majority control.

And since Sammy took over Sega lost all creativity,

Where is my Valkyria Chronicles III?

Sega Sammy sounds like a DBZ move.

They should consider changing that logo.

Looks like someone had a first go at the gradient feature in Illustrator. :-/

The last great Sega game I played was Sonic and Sega All Stars Racing on the PS3... but then again, that was made by Sumo, and they're about one of the only talented teams that makes games for Sega anymore these days. (makers of Outrun and GTI Club)

So put out a game worth a shit. Like, oh I don't know, Guilty Gear?

I don't know what they're talking about - there's plenty of "demand." I demand Dreamcast 2! And Shenmue III. And a new Jet Set Radio. And a Saturn Collection. And...

I forgot these two merged.

Sonic Colors didn't sell enough?

With console games on the decline and more smartphone games to come from Sega. Dedicated consoles may become like MP3 players and get eclipsed by smartphones.

Breaking News

Sega Sammy financial posting shows weak US demand, losses

Reader Comments (34)

Posted: Jul 29th 2011 11:19PM trinica said

Posted: Jul 29th 2011 11:27PM Ramen of Doom said

Posted: Jul 29th 2011 11:28PM Acosta02 said

Posted: Jul 29th 2011 11:30PM SecretAgentHam said

Posted: Jul 29th 2011 11:44PM RickGhastly said

Posted: Jul 30th 2011 1:13PM Epoque said

Posted: Jul 29th 2011 11:29PM onan said

Posted: Jul 30th 2011 10:09AM McTwist said

Posted: Jul 29th 2011 11:30PM Flapjackal said

Posted: Jul 30th 2011 12:02AM Space Cobra said

Posted: Jul 30th 2011 2:07AM Cafecito said

Posted: Jul 29th 2011 11:57PM FinalFantasyXIIIsucks said

Posted: Jul 30th 2011 12:04AM laser beams said

Posted: Jul 30th 2011 12:05PM tendoboy1984 said

Posted: Jul 30th 2011 1:16PM Epoque said

Posted: Jul 30th 2011 12:05AM Cafecito said

Posted: Jul 30th 2011 12:06AM Lawfer said

Posted: Jul 30th 2011 12:44AM GuardianLegend2 said

Posted: Jul 30th 2011 1:10AM Faceless Troll said

Posted: Jul 30th 2011 1:16AM GuardianLegend2 said

Posted: Jul 30th 2011 2:02AM GuardianLegend2 said

Posted: Jul 30th 2011 1:04AM Faceless Troll said

Posted: Jul 30th 2011 1:25AM Mr Khan said

Posted: Jul 30th 2011 2:04AM freaparn said

Posted: Jul 30th 2011 2:09AM ecco6t9 said

Posted: Jul 30th 2011 3:29AM zakezoe85 said

Posted: Jul 30th 2011 3:34AM Solais said

Posted: Jul 30th 2011 4:05AM Pure Black World Tendency said

Posted: Jul 30th 2011 6:12AM Shockwave said

Posted: Jul 30th 2011 8:42AM Coldbrand said

Posted: Jul 30th 2011 9:47AM SEGA Scream said

Posted: Jul 30th 2011 11:38AM CaptainProtonX said

Posted: Jul 30th 2011 11:58AM tendoboy1984 said

Posted: Jul 30th 2011 4:33PM vision33r said

Info

Description

MSRP

Release Date

Genre

Developer

Publisher

Rating

Breaking News

WB conjures up Harry Potter for Kinect this fall

Featured Stories

Weekly Webcomic Wrapup is a stranger in a strange land

Silver Lining: I Am Alive's unfeeling world

Game Of Thrones and the paradoxes of adaptation

Engadget

TUAW

Massively

WoW