Sega Issues Financial Warning Over ‘Sluggish’ Holiday Sales | Gaming

Sega Sammy Holdings Inc – ADR SGAMY issued a financial warning due to disappointing sales during the crucial holiday season of 2023.

The company attributed the downward revision of its sales and profit forecast to “weak sales” of new games released in the third quarter of the financial year, reported IGN.

See Also: SEGA Workforce Shake-Up: 61 Employees Face Layoffs While There Is Union Opposition

Sega highlighted “sluggish” sales of titles like “Sonic Superstars,” “Endless Dungeon,” and “Total War: Pharaoh” during the holiday season.

The company also incurred losses linked to an inventory write-down, which were “in response to these sales conditions.”

“As a result of these factors, etc., both sales and ordinary income are expected to be lower than previous forecast,” the company said in a statement.

Sales struggles were particularly notable in Europe and the United States, where Sega cited a plateau in market expansion due to economic challenges like inflation.

Despite the success of recently released games like “Like a Dragon: Infinite Wealth” and “Persona 3 Reload,” Sega doesn’t anticipate these titles, nor the upcoming “Unicorn Overlord,” to offset the overall lower sales and profits for the financial year.

The company acknowledged the impact of competitive titles, notably “Super Mario Bros. Wonder,” which launched shortly after “Sonic Superstars.”

Sega announced ongoing structural reforms in its European game development business, including the cancellation of projects like “Hyenas” and a review of the medium-term lineup. This restructuring also involves management changes.

Read Next: ‘I Want Sonic To Surpass Mario,” Says SEGA Executive

Image credits: IB Photography on Shutterstock.

… read more www.benzinga.com

FTC: We use income earning affiliate links. More on Sposored links.
Terms of use and third-party services. More here.

Ad Amazon Minecraft Clothing, toys, and accessories.

Stay connected throughout the year with official, ongoing Microsoft podcasts.
Microsoft Podcasts Apple | Microsoft podcasts YouTube


“You deserve someone who would make you so happy that you forget that you had ever been sad; someone who would love you so much that you forget that you once wondered if you are worthy of love. You deserve someone who would make you realize that you deserve to be loved; but not just with any kind of love.” —Nica Rodriguez

Related Posts