SEGA Reports Drop In Revenues Amid Sonic Series Successes

Sega Sammy has published its Q3 2024/25 financial results, which cover up to 31st December 2024, and it shows mixed results for the company (via GamesIndustry.biz).

While the Entertainment sector has seen an 8.1% increase in net sales to ¥238.6 billion, its overall net sales are actually down to ¥322.3 billion, a decrease of 8.1% year-on-year, with operating profit down 20.8% and recurring profit down 13.9%.

The drop can be attributed to a decline in free-to-play, which dropped to ¥34.7 billion in revenue (compared to ¥40.1 billion for the same period last year), and the sale of Amplitude Studios in November 2024. The French company has since become independent again following a management buyout.

The cancellation of Football Manager 2025 is another “loss” that has forced the company to revise its expectations for the remainder of the year.

But it’s not all bad news, with Sega’s leading hedgehog blazing a trail for the company. Sonic X Shadow Generations sales have surpassed 2 million units worldwide (as of 31st December 2024), and the Sonic the Hedgehog 3 movie has smashed box office records to be the second highest-grossing video game movie of all time, sitting at USD $460 million grossed worldwide. Atlus’ Metaphor: ReFantazion, though not on Switch, has also “surpassed expectations”.

Even with those successes, net sales expectations have now been revised to ¥425 billion (down 4.5% from ¥445 billion) and net profit is now projected to hit ¥37.5 billion, down from ¥39 billion. it does expect operating profit and recurring profit to both rise by March 2025, however.

Sega does have a solid Q4 ahead, with Virtua Fighter R.E.V.O and Like a Dragon: Pirate Yakuza in Hawaii both launching elsewhere. Beyond this fiscal year, we’ve also got a new Sonic racing game coming sometime this year. And with the Switch 2 on the horizon, Sega will likely have more up its sleeve.

Are you surprised by Sega’s results? Let us know in the comments.