Sega Sammy Reports Q2 Earnings

The Q2 earnings for Sega Sammy Holdings, ending September 30th, showed a mixed bag for the mothership’s games division.

According to GamesIndustry.biz, the data showed $39 million in profit off of $236 million in packaged or physical sales. Revenue was flat, but profit increased about 25%. Digital was a different story: Sega Sammy lost more than $12 million on flat revenue on $171 million there. At this time last year, quarterly profit in digital was in the black, by more than $17 million.

Sega praised physical fare such as Sonic Mania Plus and the remastered Shenmue I & II, but ultimately blamed the mixed result on delays to several key titles, some of which will now miss the entire fiscal year window. That will include Team Sonic Racing, once a Holiday title, now pushed to May. A new Sakura Wars title, announced with much fanfare in Japan earlier this year, has also been bumped to later this year.

Overall, the Entertainment Contents Division, which games are housed under in Sega’s corporate structure, saw a revenue jump of 5% year to year, but profits fell close to 40%.