SEGA Financials Down In Latest Earnings Report

Sega held their financial briefing the other day and things aren’t looking all that rosy for the home of Sonic the Hedgehog.  The company is forecasting a loss for the fiscal year and will not achieve year-over-year growth.

“In the consumer business, although [SEGA] launched multiple titles, including Football Manager 2014 and Sonic: Lost World, in the packaged game software field, sales were low due to the harsh market environment,” Sega’s report read.

Net sales for the three quarters of the fiscal year ended up at 303,961 million Yen, a 46.8% increase compared to the same time period last year.  Factors such as a gain on sales of investment securities and a loss on liquidation of subsidiaries and affiliates, Sega is recording a net income of 44,329 million Yen.

Sonic: Lost World, which was Sega’s big Fall 2013 game has only shipped 640,000 units.  It is unknown how many of those shipped units were sold to consumers.  A three-game exclusivity deal with Nintendo kept the game from launching on the more popular PS3 and Xbox 360 consoles, potentially hurting sales of the game.  Sega hopes to increase sales for the game through DLC, which adds Yoshi’s Island and Zelda themed content.

Sonic Boom, a brand new Sonic trans-media project that spans video games, a TV show and toy products, will release in 2014 and is something Sega hopes will become quite lucrative.  Much like Sonic: Lost World, the game will be a Nintendo exclusive and will not launch on PlayStation or Xbox consoles.