Sega sees net loss of 6.6 billion yen due to business restructuring in Europe and cancelled games
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.
Amber V
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Unfortunately we are going to see much more losses due to the SEGA GAAS Revival. But I do expect SEGA to turn it around eventually.