Recently it was revealed that SEGA had plans to forget big budget console releases to focus more on PC and mobile gaming, and it seems like they may have made the right decision as that earnings show that betting big on consoles hadn’t paid off as much as they’d hoped with sales of Wii U games, and Football Manager 2015 falling short in particular.
The past three quarters from April 2014 to December 2014, SEGA revealed that they’d spend a total of $210 million on games development, a 27 per cent increase compared to the year before. Spends also increased on advertising which rose to 53 per cent up from the year before to $73 million. It’s this massive spend on development that will see SEGA release a whopping 50 games by time the financial year ends in March, with combined estimated sales of 5.4 million units, a figure which is already outsold by single games from rival publishers.
As you can guess, the game which earned SEGA the most, with 1.76 million sales, was Alien Isolation, which is currently nominated for 6 BAFTA Game Awards. SEGA’s second biggest seller, though sales of the game are actually in decline, is Football Manager 2015 with the latest edition which launched this past November having just 640,000 units. Previously the 2014 instalment sold 790,000, and the 2013 instalment sold a record 940,000.
As you may have also guessed, Sonic Boom was the game which caused the most hurt for SEGA with both the Wii U and 3DS games combined selling a fairly poor 490,000 units.
Initially, SEGA expected to sell around 300,000 units of its four latest Wii U games, but has since revised the forecast to 230,000, making it the weakest platform in terms of sales. Elsewhere, SEGA expects PS3 titles to sell 960,000 units; PS4 titles to sell 920,000; Xbox 360 titles to sell 240,000; Xbox One titles to sell 420,000; and finally 3DS titles to sell 1,160,000.
Because of these results, SEGA’s revenue for the past three quarters was $685 million, but after expenses reveals a profit of $18 million.
Finally, SEGA has set aside $125 million for the aforementioned restructure costs, and now expects to lose $110m for the full year.