Sega Issues Financial Warning After 'Sluggish' Sales of Sonic Superstars, Endless Dungeon, and Total War: Pharaoh European restructure ongoing.

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Source: https://www.ign.com/articles/sega-issues-financial-warning-after-sluggish-sales-of-sonic-superstars-endless-dungeon-and-total-war-pharaoh

Sega has issued a financial warning after what it called “sluggish” and “weak” sales during the crucial holiday 2023 period.

Reporting its financial performance for the nine month period ending December 2023, Sega said it had revised its sales and profit forecast down “mainly due to weak sales” of new games released during the third quarter of the financial year.

“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,” Sega said.

The company also recorded losses associated with an inventory write-down “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,” Sega said.


Other Sega games released during Q3 include Sports Interactive’s Football Manager 2024, Like a Dragon Gaiden: The Man Who Erased His Name, and Persona 5 Tactica.

It’s worth noting that the period Sega is reporting here does not include the recently released Like a Dragon: Infinite Wealth and Persona 3 Reload, both of which set sales records for their respective developers. However, it seems Sega does not expect these games, or the upcoming Unicorn Overlord, to prevent overall sales and profits for the financial year from coming in below expectations.

So, what’s going on at Sega then? The company said sales in Europe and the United States in particular were struggling. “Regarding the entertainment content industry, in the consumer area, the expansion of the market, mainly in Europe and the United States, has reached a plateau due to a worsening economic environment caused by inflation and other factors,” Sega said.

“In addition, game development costs continue to rise, and there is an urgent need to respond to these changes in the business environment. However, expectations for the growth of the game market continue as the diversification in terms of service provision resulting in an environment having been created in which content and services can be delivered globally over the long-term, regardless of device or platform.”

Sega did not reveal individual sales figures for its games, but in November admitted other games had a “significant” impact on Sonic Superstars, specifically. That was a clear nod to fellow 2D platformer Super Mario Bros. Wonder, which launched three days later on Nintendo Switch.

Elsewhere in its financial report, Sega signaled the continuation of significant “structural reform” of its game development business in Europe. Sega has already canceled Creative Assembly’s live-service shooter Hyenas, leaving its development team facing redundancy. Sega said it was reviewing its “medium-term lineup” and had revised the management structure of the European business.

Sega owns Total War developer Creative Assembly, which is now focusing on strategy games, Football Manager developer Sports Interactive, Two Point Hospital developer Two Point Studios, Endless Dungeon developer Amplitude Studios, and Angry Birds developer Rovio. Sega also owns Company of Heroes developer Relic Entertainment in Canada.

To all those who said Sega were doing great, well, Sega has admitted its releases are struggling.

Sega want $95 AUD for Sonic Superstars in what could be the biggest joke ever.

[Eagle_of_Fire]

Sega is one of those companies I have so little respect for I would rather not play a game of the year made by them instead of giving them more money. Not that I believe they could ever produce one which help a lot to make this statement.

That lack of respect started right after their Sega Genesis era. Scummy actions in every department are their shticks and I'm not surprised at all of this outcome nor about what they are currently doing.

[Thermal Lance]

Heh.

[Piston Smashed™]

It's more expensive in the UK than Australia so not sure why you decided to use AUD as an example, unless it is just make it look more expensive than it actually is...

[Chika Ogiue]

Originally posted by __++__==:

Does the news article exist or not?

Does you posting this off topic discussion have anything other than to do with your ongoing raging about Sega and/or Relic?

[Thermal Lance]

You know. OP having some rage boner over SEGA doesn't disqualify him from criticising SEGA. I get that OP clowned himself a couple of times. But, at some point, the dogpiling has to stop.

[Unn4m3d (♥AUT♥)]

Originally posted by Thermal Pineapple:

You know. OP having some rage boner over SEGA doesn't disqualify him from criticising SEGA. I get that OP clowned himself a couple of times. But, at some point, the dogpiling has to stop.

It's more that he is unable to accept that he was at fault, regardless of whether or not you like Sega.

That said, that's Off-Topic, much like this Thread belongs in Off-Topic, which he knowingly didn't create there.

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It is steam and games related as all these games are sold on steam. nice try though

[lsdninja]

Originally posted by Thermal Pineapple:

But, at some point, the dogpiling has to stop.

Maybe OP should start a thread calling for the continued support of Windows 7. You have no problem dogpiling on those guys 😆

[Unn4m3d (♥AUT♥)]

Originally posted by __++__==:

It is steam and games related as all these games are sold on steam. nice try though

Since this is about Steam as a platform, this does not apply. You knew that though.

[Thermal Lance]

Originally posted by lsdninja:

Originally posted by Thermal Pineapple:

But, at some point, the dogpiling has to stop.

Maybe OP should start a thread calling for the continued support of Windows 7. You have no problem dogpiling on those guys 😆

Come'on now. I'm not that bad.

[Start_Running]

Originally posted by Thermal Pineapple:

You know. OP having some rage boner over SEGA doesn't disqualify him from criticising SEGA. I get that OP clowned himself a couple of times. But, at some point, the dogpiling has to stop.

Except there's nothing particularly odd about this annoyuncement. SEGA had put the Euro branch on notice months back.

The department didn't make quota so its restructuring.
I mean for this to be news says this must be a slooow news cycle.

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Originally posted by Unn4m3d (♥AUT♥):

Originally posted by __++__==:

It is steam and games related as all these games are sold on steam. nice try though

Since this is about Steam as a platform, this does not apply. You knew that though.

Sega is a mahor steam developer and so?

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Originally posted by Start_Running:

Originally posted by Thermal Pineapple:

You know. OP having some rage boner over SEGA doesn't disqualify him from criticising SEGA. I get that OP clowned himself a couple of times. But, at some point, the dogpiling has to stop.

Except there's nothing particularly odd about this annoyuncement. SEGA had put the Euro branch on notice months back.

The department didn't make quota so its restructuring.
I mean for this to be news says this must be a slooow news cycle.

See the other thread for Sega America layoffs then :) :) :)

[Unn4m3d (♥AUT♥)]

Sega is not a "Steam developer", again, you knew that, but I wont keep feeding you.
Them releasing games on Steam still has nothing to do with Steam as a plaftorm.

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Originally posted by Piston Smashed™:

It's more expensive in the UK than Australia so not sure why you decided to use AUD as an example, unless it is just make it look more expensive than it actually is...

That's my local currency so ..............you'll have to live with it.

UK has bigger problems than games prices..........like knife crimes