Sega Sammy Holdings Inc. lowered its annual sales forecast but raised its profit outlook as strong downloadable content sales helped offset the impact of canceled game development projects.
The Tokyo-based entertainment company cut its revenue projection for the fiscal year ending March by 4.5% to ¥425 billion ($2.9 billion) after halting development of Football Manager 25 and delaying two free-to-play titles. However, it raised its operating profit forecast by 2.2% to ¥46 billion, citing robust downloads and performance in its animation business.
The company’s latest hit “Metaphor: ReFantazio” garnered three awards at The Game Awards 2024, while “Sonic x Shadow Generations” surpassed 2 million units in global sales. The third Sonic movie has already generated $460 million in worldwide box office revenue.
The gaming segment benefited from solid performance in North America, where the new Genesis Atmos slot machine cabinets exceeded expectations. The company’s Paradise City casino resort in South Korea achieved record-high quarterly revenue, driven by Japanese VIP customers.
For the first nine months through December, net income rose 17% to ¥41.8 billion, helped by a one-time gain from selling Phoenix Resort shares, even as revenue declined 8.1% to ¥322.3 billion.
