Sega Gaming Division Doing Well Despite Adjustments to Financial Forecast
Earlier today, Sega released a notice that they were making an adjustment to their forecasted financials for the year ending on March 31, 2018. According to the initial forecast – which was published on May 12, 2017 – Sega projected net sales to go up from $3.26 billion in 2016 to $3.38 billion. However, with the current adjustment, Sega now expects net sales to drop to $2.93 billion, a $445 million drop-off and a total decrease of 13.2%.
Despite the sudden adjustment, Sega’s game division appears to be performing fairly well despite the other harsh drops. Net sales for games (via GamesIndustry.biz) were only adjusted by $44.5 million, bringing their total down to $1.9 billion. While net sales may be down, operating income generated by games is actually expected to rise from its previous estimate, bringing the new total to an estimated $124 million, up from $89 million.
In a statement regarding the adjustments, Sega acknowledged that the launch of future digital titles should cause operating income to surpass the previous forecast. “Although launch of new titles for digital games field might delay compare to initial plan, several new titles include mainstay titles are scheduled to be released in packaged games and amusement machine sales field of the entertainment contents business in the second half, operating income is expected to surpass the previous forecast.”
There’s some other information to be found from Sega’s adjustments over at GamesIndustry.biz, but it seems like Sega didn’t have the year they thought they would. At least their gaming division seems to be holding up fairly well, and isn’t projected to lose the company as much as their Pachinko and Pachislot machines are.