Sega Sammy Holdings, Sega’s parent company, has announced financial results for its first quarter of the fiscal year, as of June 30. Given the importance of the physical business for the company (pachinkos, hotels and resorts, arcades…), and unlike most companies in the sector, Sega Sammy has incurred losses, with a decline also in sales of its video games division, although this has been the only sector that has generated profits during the period.
Looking first at Sega’s overall figures, the company has posted 48.382 billion yen (US $415 million) in net sales for the period, a decline of 33.5% from the first quarter of 2019. In fact, after deducting expenses for the period, net operating income ended in the red, with a loss of 3,851 million yen ($34.7 million). The main causes were the “Pachislot and Pachinko machines” sector and the “Resorts” sector, which includes casinos, hotels, amusement parks and resorts, all of which suffered significant losses due to confinement.
The only sector that has recorded profits is the “Entertainment Content” sector, i.e. video games and arcades, which has also suffered a decline in sales compared to 2019. Of the 53 billion yen in sales generated last year, 45.1 billion yen ($402 million) was earned this year. This is a decline of 14.9 percent year over year, caused by the closure of the arcades and the resulting drop in sales of toys and dolls.