Sega Sammy Holdings Inc. reported a drop in third-quarter profit as sales declined in its pachinko machine business, while its gaming unit achieved profitability on strong US casino equipment demand.
The Tokyo-based entertainment company saw its operating profit fall, primarily due to weaker sales of pachinko machines compared to the previous year when its hit title “Smart Pachinko Hokuto no Ken” drove earnings. The company maintained its adjusted EBITDA at ¥54.5 billion ($363 million).
The company’s entertainment content division showed strength, with “Sonic x Shadow Generations” surpassing 2 million units in global sales by January. The new role-playing game “Metaphor: ReFantazio” also exceeded initial sales targets, pushing past 1 million copies on its first day.
Sega’s gaming equipment business turned profitable in the US market, where its new slot machine “Railroad Ritches” maintained top-tier performance metrics. The company’s Paradise City casino joint venture in South Korea contributed ¥2 billion to earnings through strong Japanese VIP attendance.
Looking ahead, Sega has postponed the release of some key pachinko titles to beyond the fourth quarter to improve product quality. The company also canceled the development of “Football Manager 25” due to quality concerns, resulting in a ¥4 billion one-time charge.
The planned acquisition of online gaming company GAN Ltd. has been pushed back to the first quarter of fiscal 2026 from the fourth quarter of the current year, citing procedural delays. The company aims to integrate GAN with its recently reorganized gaming division to strengthen its position in the digital gambling market.
