Sega Sammy looks to freemium growth with 1.3 million downloads of Kingdom Conquest

Company had troubled Q1 FY12 however

Sega Sammy looks to freemium growth with 1.3 million downloads of Kingdom Conquest
Sega Sammy (TSE: 6460) has announced its financial figures for FY12's first quarter, the three months ending 30 June 2011.

Overall, net sales were ¥65.3 billion ($850 million), down 29 percent.

Operating income was ¥2.9 billion ($38 million), down 81 percent year-on-year, and the company made a net loss of ¥2.2 billion ($29 million).

Split into two main areas - consumer games and arcade operations, including pachinko machines, arcade machines and amusement centers - sales were down across the board.

However, Sega Sammy pointed out the results were relatively favourable compared to its projections, announced in May. It expects total FY12 sales to be down around 15 percent year-on-year, although it predicts to be profitable.

Mobile sparks

The company lists mobile sales within its Consumer Business segment, alongside console games, toys and its animation business.

The division's net sales were down 23 percent to ¥16 billion ($208 million), while it made a loss of ¥3.8 billion ($49 million).

Specifically related to mobile games, Sega Sammy pointed to the 1.3 million downloads of its iOS Kingdom Conquest freemium MMORPG.
Samuari Bloodshow, a freemium Japanese-only card trading game, Ryu ga Gotoku Mobile for the GREE mobile platform, and Sammy 777 Town, a mobile social game with 820,000 subscribers, were also highlighted.

Sega Sammy ended the quarter with ¥270 billion ($3.5 billion) in terms of current assets such as cash and securities.

[source: Sega Sammy (PDF)]
Contributing Editor

A Pocket Gamer co-founder, Jon is Contributing Editor at which means he acts like a slightly confused uncle who's forgotten where he's left his glasses. As well as letters and cameras, he likes imaginary numbers and legumes.