Summary
A recent financial report fromSegahas indicated that its sales of new games during the Holidays were rather sluggish.Segahad an incredibly active 2023, publishing roughly 15 titles from its catalog of IPs. Some of these were re-releases and smaller-scale titles, like ports ofPersona 4 Goldento other consoles, theEtrian Odysseycollection, andSamba de Amigo: Party Central.
2023 also saw the release of brand-new Sega titles in its most prominent AAA franchises, includingSonic Superstars,Like a Dragon Gaiden: The Man Who Erased His Name, andPersona 5 Tactica. Other releases in the year included games from Sega’s European branch, likeCreative Assembly’sTotal War: Pharaohor Amplitude Studios’Endless Dungeon. Despite 2023 being a good year for Sega releases, it was also reportedly a slow year in terms of new game sales, especially during the 2023 holiday period.
According toSega’s latest financial report, despite having a rise in overall sales and profit, there was a decrease in sales for new titles. As a result of these weaker sales, Sega adjusted its sales and profit forecast for the upcoming financial year. “In the Consumer area, although we released some new titles in Q3, includingSonic Superstars,Endless Dungeon, andTotal War: Pharaoh, sales went sluggish during the holiday sales season,” said Sega. “As a result of these factors, etc., both sales and ordinary income are expected to be lower than previous forecast.” These reports do not include therecord-breaking sales numbers forPersona 3 ReloadandLike a Dragon: Infinite Wealth.
Sega’s Reasoning for Weak Sales
Sega states that sales in Europe and the United States are the main areas that were struggling, citing that the “worsening economic environment” has reached a plateau, among other factors.Inflating game development costswere also cited in this report, stating that there is an “urgent” need to respond to this changing environment. Sega expects the game market to continue growing, along with its platform diversity, allowing for games to be published and maintained in the long term.
In the Consumer area, although we released some new titles in Q3, including Sonic Superstars, Endless Dungeon, and Total War: Pharaoh, sales went sluggish during the holiday sales season. As a result of these factors, etc., both sales and ordinary income are expected to be lower than previous forecast.
While there weren’t any specific games pointed out as a reason why sales were slow in Holiday 2023, Sega did mention back in November thatSonic Superstars' sales fell below expectations, likely due to it releasing around the same time as Nintendo’sSuper Mario Bros. Wonder. Despite its lackluster sales,Sonic Superstarsis expected to continue getting DLC content later in 2024, with a new Shadow the Hedgehog costume being added to celebrate the newly announcedSonic X Shadow Generations.
Sega’s game output for 2024is looking to be pretty strong. Aside from the aforementioned releases ofLike a Dragon: Infinite WealthandPersona 3 Reload, Sega has new entries in its classic back catalog lined up, including a newCrazy Taxi,Jet Set Radio, andStreets of Ragegame. That being said, Sega has also stated that it does not expect these games or the upcomingUnicorn Overlordby Atlus to prevent sales and profits from ending up being below expectations.
