Restructuring SEGA returns to profit in Q2 2012

[garyopa]

However, game losses continue.



SEGA has announced its Q2 2012 earnings. Seems that the company returned to profitability in Q2, following confirmation of large-scale restructuring outside Japan.

SEGA Sammy Holdings has posted its Q2 financial results.

It looks like the company has returned to profitability in the period as it continues the ongoing restructuring of its US and European business.

It reported revenues of ¥69.9 billion ($893m/£569m) in the quarter ended June 30 2012, a 7.1% year-on-year increase. Profits were ¥2.5 billion ($32m/£20m), versus the ¥2.2 billion loss in the same quarter last year.

Sega's financial report noted "weakened demand" for packaged games due to the economic climate in the US and Europe. The company's only major packaged release was London 2012: The Official Video Game of the Olympic Games. Total packaged sales across all titles for the quarter were 1.34 million - a year-on-year decline.

The Consumer division reported total revenues of ¥15.1 billion ($193m / £123m), down 6.9 per cent from last year. Overall, the division made an operating loss of ¥1.5 billion ($19m / £12m).

And finally, here's what the company said in an investor note published:

"We will cut fixed costs and concentrate efforts on sales of strong titles that are expected to continue posting solid earnings..."

It added that digital sales were picking up. The smartphone game Kingdom Conquest was downloaded to more than three million devices by June.

Sega added: "Furthermore, Phantasy Star Online 2, the main title in the digital game software field for the current fiscal year, officially launched on July 4th and has been enjoying brisk sales".

If you didn't know, SEGA confirmed in June that it was shutting offices in France, Germany, Spain, Australia and Benelux, and they will now focus on prominent IP like Sonic, Total War and Football Manager.

NEWS SOURCE #1: Sega returns to profitability in Q2 (via) GamesIndustry
NEWS SOURCE #2: Sega business returns to profit but game losses continue (via) CVG

Our thanks to 'Gauss' for this news item!

[DEDDOA]

They should have made the deal with MS when they had the chance, having the Xbox support DC games would have meant they could have stayed inthe console game without the extra cost and had a machine they could focus on and have a reason to push, so giving them the incentive to polish their games like they used to. Instead we get mostly drivel that budget game makers would be ashamed of, and even worse, butchered remakes of old classics so that not only do they make their new stuff be assumed to be less than great, they atempt to destroy the games that still give them some credibility. Sega's loss of focus has really gimped them as they have gone from being on a par with nintendo's first party software to being the Uwe Boll of the game world more often than not. It's a shame really as Sega used to be a sure thing when it came to quality games hen I was a kid, now their name on a game can put me off it. Oh well at least I still have fond memories of the likes of Revenge of Shinobi on the Megadrive, and playing the likes of Afterburner, Outrun and Power Drift in the arcades.