Sega posted a net loss of 6.6 billion yen in the past FY (April 1, 2023 – May 31, 2024)

[Remember_Spinal]

Sega sees net loss of 6.6 billion yen due to business restructuring in Europe and cancelled games - AUTOMATON WEST

While Sega's games performed well in fiscal year 2023, the company saw a sharp decline in operating income due to cancelled titles and business restructuring.

automaton-media.com

Sega's operating profit in the past fiscal year (April 1, 2023 – May 31, 2024) fell by 86.7%, and the company posted a net loss of 6.65 billion yen (over $41 million). The losses are significant considering Sega had made a net profit of 11.488 billion yen in the year before (source: Gamebiz).

This does not mean that Sega's games performed badly, as titles such as Like a Dragon Gaiden: The Man Who Erased His Name, Like a Dragon: Infinite Wealth, Sonic Superstars and PSO 2: New Genesis did well, boosting Sega's sales throughout the fiscal year (net sales decreased by only 2.6%). However, the company's operating profit suffered a sharp decline as a result of the Structural Reform implemented at Sega Europe. Due to changes in the market and profitability downturn, Sega sold off developer Relic Entertainment while cutting approximately 240 employees across several Sega Europe studios.

Apart from losses coming from business restructuring, Sega posted an additional extraordinary loss of 12,955 million yen related to discontinued game content.

 

[Old Gamer]

Those Xbox deals have done wonders!

 

[Remember_Spinal]

Those Xbox deals have done wonders!

Seems like it a bad move tying all their games marketing to xbox branding

 

[Umar]

Guess going multiplat couldn't stop them posting a loss

 

[Nhomnhom]

This is the type of future PlayStation and Xbox are trying to set up for themselves by going third party.

 

[Danja]

Good! Need them to bleed out more

 

[Old Gamer]

Guess going multiplat couldn't stop them posting a loss

They've been multiplatform for a good long while, that's not the problem.
The boneheaded move was betting on the least popular platform (by far) and sign marketing deals with it for pretty much every game, while alienating the costumers that kept their business profitable up until then.

Fuck SEGA for getting in bed in MS.

 

[Hatefield]

They've been multiplatform for as long as I can remember, that's not the problem.
The boneheaded move was betting on the least popular platform (by far) and sign marketing deals with it for pretty much every game, while alienating the costumers that kept their business profitable up until then.

Fuck SEGA for getting in bed in MS.

Or, maybe people are tired of persona 5, sonic and yakuza every year. I know I am.

 

[GachaMadeMeBroke]

Seems like the same reason that Square posted a net loss; cancelled projects and restructuring.

 

[shrike0fth0rns]

Sega sees net loss of 6.6 billion yen due to business restructuring in Europe and cancelled games - AUTOMATON WEST

While Sega's games performed well in fiscal year 2023, the company saw a sharp decline in operating income due to cancelled titles and business restructuring.

automaton-media.com

I kinda hate modern Sega they focus way too much on niche ass crap

 

[Old Gamer]

Or, maybe people are tired of persona 5, sonic and yakuza every year. I know I am.

Onset of franchise fatigue is the worst possible moment to incur the risk associated with marketing deals on the platform where you sell the least.

 

[Jim Ryan]

Wow, aligning themselves with Xbox really did wonders.

 

[peewee78368]

Going multi plat and switching ur marketing to xbox did not work out. Seems Now Sega has to pay for these games fully out of pocket instead of doing deal. Gamepass deals seems to be destroying anything they do. But this is what they wanted soooo

 

[Dabaus]

Sega has been used as an example of going multiplatform as a win and signed multiple marketing deals with Xbox and here we are. Did SE ever take a loss even if games underperformed? Hope the next game sega is pushing flops too.

 

[Cool hand luke]

Xbox marketing + multiplat releases = massive loss. Let that be a lesson.

 

[Cool hand luke]

Did SE ever take a loss even if games underperformed?

Ever? Idk but they're making a profit this year. Thanks FFXVI and FF7 Rebirth

 

[Shadow2027]

Xbox isnt paying them enough. The ports time and cost are alot of extra money. Plus imagine these day 1 gamepass deals are hurting their sales on Ps Nintendo and Pc.
Personally have enjoyed a good chunk of their games for a while now.

 

[peewee78368]

Sega has been used as an example of going multiplatform as a win and signed multiple marketing deals with Xbox and here we are. Did SE ever take a loss even if games underperformed? Hope the next game sega is pushing flops too.

SE did u have the remeber they did sign gamepass deal when KH and FF all came to xbox they also took a hit which i thought was dumb to do alot of those ff games were never on xbox and u dont sell them -.-

 

[quest4441]

"This does not mean that Sega's games performed badly, as titles such as Like a Dragon Gaiden: The Man Who Erased His Name, Like a Dragon: Infinite Wealth, Sonic Superstars and PSO 2: New Genesis did well"

Ah yes the classic multiplat's selling 1-2 million and being considered a success but console exclusives selling 1-2 million but being considered a failure I can see whats going on here. What is hilarious is Infinite wealth was on discount for 30% within 30 days of launch but people question the success of Ronin and Stellar Blade

 

[Gods&Monsters]

Imagine getting these awful results in the year you launch multiple Yakuza and Persona games

This won't get 1/4 of the traction SE got with FF16 supposed low sales.

Fantazio is next to flop. All the marketing is polluted with Xbox branding and the views are low across the board. No hype at all.

Vanillaware and Unicorn Overlord deserves better than to be tied with this failed bitch.