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Sega profits rocket by 421%, video games up 50% too

Sega profits rocket by 421%, video games up 50% too

Sega Sammy profits rocketed by an impressive 421.3 per cent year-over-year with Sega's video games sector rising by 50.9 per cent too.

This information was made public through the company's financial results for the 12 months ended on March 31st, 2020.

Overall net sales for the group arrived at ¥366.6 billion ($3.42 billion), up 10.5 per cent from the ¥331.6 billion ($3.1 billion) earned last year.

Profit attributed to owners of parent rose from ¥2.6 billion ($24.3 million) to ¥13.8 billion ($129 million), thanks in large part to the Entertainment Contents division.

Diving into video games specifically shows that net sales grew to ¥247.7 million ($2.31 billion), an increase of 12.8 per cent from the previous fiscal year. Additionally, operating income was ¥14.8 million ($138.3 million), up by 50.9 per cent from the previous fiscal year.

"Competitive enviroment"

"Regarding the environment of the entertainment contents business, in the digital game software field, the strong competitive environment for mobile game continues, especially in Japan," reads the financial document.

"With regard to the packaged game software field, in the market for hardware of home video game consoles, the game software sales market is expanding, mainly in overseas due to the growing penetration of current-generation video game console hardware"

Sega noted that the company expects its amusement centres and machines to take a hit due to the ongoing Covid-19 situation, as well as the likelihood of game delays if the pandemic continues, which may impact its earnings over the next financial year.

Most recently. Sega launched its own music brand known as Sega Music, which will be used for any game music the company wants to release under the subsidiary.


Staff Writer

Matthew Forde is the staff writer for PocketGamer.biz and also a member of the Pocket Gamer Podcast. You can find him on Twitter @Forde999 talking about Smash Bros. and everything pop culture related - particularly superheroes.

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