Sega’s sales drop because their major video game titles didn’t sell well.
Sega’s parent company, Sega Sammy, released their financial results from April to September 2015. Sega’s sales decreased, but their profits didn’t.
According to GameSpot, “Net sales for the period reached $1.2 billion, which is a 2.5 percent decrease over the same six months in 2014, where it reported just over $1.3 billion. Despite this slight decline in sales, profit hit $7.9 million, compared to a $23 million loss in 2014.”
Sega’s video game sales dropped mostly because of “the lack of sales of major titles”
The publisher of Total War, Sonic the Hedgehog, and Yakuza stated that the competition in Japan for smart games, and smart phones is moderately rising. Some of Sega’s key mobile titles are: Chain Chronicle – Kizuna no Shintairiku, Puyopuyo Quest, and Phantasy Star Online.
Sega attempted to obtain profits using Pachislot (slot machine) and pachinko (pinball machine) machines. Their Fist of the North Star machines scored them a profit, but it was less than they had anticipated.
The company stated, “Performance in the digital game software field in the first half of the year ending March 31, 2016 were below the initial plan because the Group made a strategic revision to the timing of the launch of titles in response to intensifying competition and also because certain titles were less well-received than expected.”
According to GameSpot, “In July 2015, Sega Game CEO Haruki Satomi said he believes the company betrayed the trust fans put in it over the last few years, and committed to improving the quality of its games to re-establish itself as a valuable brand.” He goes on to say, “I’ve been talking to employees about how [Sega] should start putting serious consideration into quality from this point on… Particularly in North America and Europe, where it’s always been more of a focus on schedules… I believe that if we can’t maintain quality, it would be better to not release anything at all.”
Haruki Satomi also stated, “Sega in the 90s was known for its brand, but after that, we’ve lost trust, and we’re left with nothing but reputation … We’d like to win back the trust and become a brand once again”
Sega will be focusing more on its mobile and PC games rather than console games. This can also be noted by their investment in 3 western developers. One of the more key companies they have invested in is Demiurge Studios
According to GameSpot, “Demiurge, which was bought outright by Sega, worked with Harmonix, Gearbox, Irrational, and BioWare. The studio contributed to multiple Rock Band track packs, built the PC edition of Mass Effect, assisted with art design on the original BioShock, and worked on the ultimately canceled Wii U version of Aliens: Colonial Marines.”
Recently, Sega had to restructure their company, resulting in the loss of over 300 employees. They also had to relocated their company to San Francisco.
Some upcoming major title by Sega include: Persona 5, Total War: Warhammer, and Yakuza 6. I’m extremely hyped for Persona 5 to steal many hours of my life away.