Sega has hired former Disney and Scopely executive Justin Scarpone to lead its transmedia strategy.
09.02.2024 - 19:28 / gamesindustry.biz
Sega Sammy has released its financial report for the nine months ended December 31, 2023, and experienced a rise in overall sales and profit despite a decrease in sales for new titles.
The decline in the video games segment was offset by growth in pachislot and pachinko machines, but the company has lowered its sales forecasts for the full financial year.
Sega Sammy attributed its boost in overall sales and profit to its pachislot and pachinko machines business. Net sales were up 130.3% to ¥120.2 billion ($805 million) in this segment, while ordinary income increased by 521.3% at ¥45.7 billion ($306 million).
In the Entertainment Contents segment, which includes video games, net sales were up 4.2% at ¥219.3 billion ($1.4 billion, which Sega Sammy attributed to its acquisition of Rovio last August).
However, profit decreased by 52.5% to ¥19.7 billion ($131.8 million) as a result of weak game sales.
This is despite new titles releasing over the course of the nine months ending December 2023, including Sonic Superstars, Like A Dragon Gaiden: The Man Who Erased His Name, and Persona 5 Tactica.
As a result, Sega has revised its forecast for the Entertainment Contents segment. Net sales were forecast to be ¥327 billion ($2.1 billion) in November 2023, and are now ¥313 billion ($2 billion).
In the consumer division of Entertainment Contents, net sales were ¥148.1 billion ($991 million), and operating income came to ¥13.9 billion ($93 million).
Sales of new games during this period reached 5.2 million units, down from 6.9 million during the same period last year. Catalogue titles sold 13.8 million (up from 13.7 million), with full game sales totalling 19.1 million (down from 20.7 million).
Looking ahead, Sega Sammy revised its forecast for the fiscal year. The games firm previously expected net sales of ¥474 billion ($3.1 billion), which has been revised to ¥463 billion ($3 billion). It revised its operating income to ¥51 billion ($341 million), compared to the previously anticipated ¥60 billion ($401 million).
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Sega has hired former Disney and Scopely executive Justin Scarpone to lead its transmedia strategy.
Sega has appointed former Disney and Scopely executive Justin Scarpone as executive vice president and head of its newly established Global Transmedia Group.
SEGA has announced the appointment of Justin Scarpone, former executive of The Walt Disney Company and Scopely, as executive vice president and head of Global Transmedia Group, effective April 1. The establishment of a Global Transmedia Group will allow SEGA to advance its transmedia strategy across its portfolio of intellectual property, such as Persona, Like a Dragon, Angry Birds, and more in the coming years.
Sega executives have suggested that competition with Super Mario Bros. Wonder hurt the sales of Sonic Superstars when it was first released. The latest 2D iteration of the classic franchise, featuring a speedy hedgehog, was launched last year to average reviews and notably poor sales. Sonic Superstars managed to replicate much of the old-school gameplay of the series but seemingly failed to wow critics or fans, and this translated to a disappointing launch.
Sonic Superstars released in October last year, delivering the first new sidescrolling game in the series since Sonic Mania, though it hasn’t performed the way Sega would have expected it to. Shotly after the game’s release, the company revealed that the game had seen “a slightly weaker start than anticipated”, attributing that partly to the fact that the game had released in a particularly busy period that also saw the release of the likes of Super Mario Bros. Wonder, Marvel’s Spider-Man 2, Alan Wake 2, and many others.
Sega executives have implied that Super Mario Bros Wonder was responsible for Sonic Superstars selling fewer copies than expected.
A well-known Sega leaker has corroborated a recent report claiming the Switch 2 is targeting a March 2025 release. They also offered some additional insights into how Nintendo handled the widely reported internal delay of the Switch successor.
Unity released its fourth quarter full-year financial earnings for 2023 yesterday, which saw a jump in revenue and decrease in net losses both in its Q4 and FY 2023 results.
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A prominent Sega leaker has revealed more information regarding the upcoming Crazy Taxi and Jet Set Radio titles, stating that there are two games in development that will be pursuing the live-service route. Sega had announced that these two classic franchises were getting brand-new titles during The Game Awards 2023, along with a brief overview of the two titles' gameplay. The revival of these IPs is a part of a bigger strategy for Sega to re-imagine these older properties for new audiences.
Sega announced at The Game Awards in December that Crazy Taxi was one of five (and perhaps more) classic properties that was getting a grand revival, and though the publisher has doles out nothing but the briefest of details on the game since then, it’s clear that the game is being treated as a significant, flagship project.
SEGA is cooking a new Crazy Taxi game, among several other reboots or revivals. While little information is known about this rebooted arcade driving outing, an interview with its recently established Sapporo studio reveals it’s contributing to the project, which it describes as a AAA title.