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Sega Sammy Reports Net Profit Surge Despite Revenue Decline

Entertainment giant forecasts double-digit growth next fiscal year after strong gaming IP performance
Japan
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Sega Sammy Holdings reported a 36.3% jump in net profit to ¥45.05 billion ($300 million) for the fiscal year ended March 2025, despite an 8.5% drop in revenue to ¥428.95 billion ($2.86 billion). The company attributed the profit increase to extraordinary income from Phoenix Resort share sales and the absence of European restructuring costs recorded in the previous year.

The gaming machine business saw a 27.1% revenue decline and 50% profit drop, primarily due to the expected falloff following last year’s hit “Smart Pachislot Hokuto No Ken.” However, the entertainment content segment achieved a 0.5% revenue increase and 35.9% profit surge, driven by strong performance from key titles like “Sonic × Shadow Generations” and “Metaphor: ReFantazio.”

Consumer division profits rose 28.3% despite a halving of new game releases, as high-margin repeat title sales climbed 29.6% to ¥42.8 billion ($285 million). The company’s lucrative Sonic franchise saw substantial growth in both gaming and film, with “Sonic × Shadow TOKYO MISSION” generating $490 million in global box office revenue.

For fiscal 2026, Sega Sammy forecasts 10.7% revenue growth to ¥475 billion ($3.17 billion) and 10.1% operating profit increase to ¥53 billion ($353 million), with multiple major title releases planned including new Sonic, Yakuza and Persona games.

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