Sega Profits Down, But Phantasy Star Online 2 Exceeding Expectations

By Ishaan . October 15, 2012 . 10:30am

There’s good news and bad news from Sega. The good news is that Phantasy Star Online 2 is doing well and that earnings from the game are exceeding expectations.

 

Earlier in the month, Sega announced that Phantasy Star Online 2 has over 1 million registered IDs in Japan and that they would be doing a special giveaway in order to celebrate. The game is planned for western release in 2013.

 

Now for the bad news. Pachislot and Pachinko business is weak in Japan, and this has caused Sega to revise their forecast for the first half (April – September) of their ongoing fiscal year.

 

Sales of Pachislot machines for the April – September period were expected to be 179,000 units, but Sega have revised this number downward to 108,000 units. Meanwhile, the forecast for Pachinko machines has been revised downward from 103,000 units to 57,000 units.

 

As a result, while Sega originally expected profits of 3.5 billion yen ($44.4 million) for their April – September period, they have now revised this to 2 billion yen ($25.4 million).

 

For reference, Sega’s profits during the same period in their previous fiscal year were 3.98 billion yen ($50.5 million). Phantasy Star Online 2′s strong performance was not enough to make up for the drop in the Pachislot and Pachinko business.

 

However, Sega point out, profit margins on Pachinko and Pachislot machines will increase due to cost improvement measures centred around the re-use of components.


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  • RaikageV

    Pachineko? Pachislot?
    I know I could just google it… but that would be way too easy…

    They were on almost 4 and are now on 2, that sounds pretty bad…

    • Peeka Chu

      Slot machines kinda.  

      • Chiyou@PSO2 Ship05

        with more anime

  • Cid ALMIGHTY

    Once the PC and Vita ver come to the USA you will see the
    profits going Up up up up.  People in the USA love to put
    there money to MMO.  Sadly I am one of them so can’t
    wait sadly I need to wait into Summer 2013 I getting
    the vita one.

    Hoping the world don’t end on Dec 21 2012 and yes
    they didn’t mean the world will end then its just
    the end of the 5000 year and will start all over

    • ZEROthefirst

      There are already plenty of US players and other players from around the world investing money into the game now. I know a lot of them don’t want to leave the game either because of this and because they don’t want to start over again. So I’m a bit worried on how well this will do in the US/Europe, etc.

      • raymk

        Well for starters not all of us can read japanese so that part alone is still going to boost buisness regardless.  The number of U.S players that can actually play this in japanese aren’t very large so I wouldn’t use that as a gauge really.  We coulda said the same thing about PS2 on psp if we were to use what you just said above.

        • ZEROthefirst

          There are very useable English patches that have been out for a while that most if not all English players know about already and it keeps getting updated.

          • Cid ALMIGHTY

             True but Japan kick out all the USA player being PSO2 was getting NPC hack.
            Anyway I see PSO2 doing super good in the USA.  People loved PSO and
            alot of them didn’t like PSU being they change alot but they did play PSU
            So all them who loved PSO will be coming to PSO2.
            I didn’t play PSO but played PSU loved it and going to play PSO2 on my Vita.

            PS: PSO2 just broke the 1million user in japan 99% are them are not from USA.  Once PSO2 coming to USA I can see that jumping up so much and people from the USA love putting money into f2p game just look at PWI.
            They made soooooooo much from us.

            SOrry for my bad english ><

          • http://twitter.com/Ezodagrom José Morgado

             SEGA didn’t kick out the PSO2 players from outside Japan, they gave a warning, if hacking continued to be a major issue, they would have to take more extreme measure (like locking the game to Japan only), but so far players from outside Japan can play just fine.

          • ZEROthefirst

            Like Jose said above (or below however this comment will be placed) SEGA has not kicked anyone from the game. It was a warning issued to all players outside of Japan who were hacking and acting out, but they have yet to do anything and I as well as many others can still log in and play.
            Personally I will be going to the English server once it comes out since I haven’t put a lot of time into the game or any money because I want to fully enjoy it, but I know some people won’t want to leave and the only way I see a lot of them coming over is if SEGA Jpn. locks players outside of Japan once the U.S./European servers are up.

  • kupomogli

    Once they’re done with all the extra areas and DLC, they should release a physical copy for those who want it on cart.  Also include the ability to play offline if we wish.

    • Brandonmkii

      There is the possibility that so much content simply won’t fit on a cart by the time it’s finished. And who knows when they’ll stop rolling out content? We could be in the next generation of handhelds by then. It would be nice though.

    • http://twitter.com/Ezodagrom José Morgado

       The game is going to keep evolving throughout the years though, most likely PSO2 is going to keep getting new content throughout its life.

  • Crevox

    Kind of a bad screenshot to use, it’s like from beta or alpha? That HUD is misplaced and looks nothing like the current game.

    Anyways, it’s a good game, so it deserves it… SEGA is kind of neglecting some balance changes and other things, but for the most part they’ve done a good job.

  • TrevHead

    So Sega were actually making money this time last year? It must have been in Q1 2012 and Binary Domain that lost them so much money that they restructured.

    Hopefully that Alien’s game won’t be as disastrous

  • http://www.facebook.com/antonio.apf.9 Antonio Apf

    If the problem is with Pachinko and  Pachislot, there is no bad news for SEGA, there is only bad news for Sammy. In last reports, usually you had Sammy doing lots of money with Pachinko and SEGA losing the money with bad sales in the consumer business.

    Now, you have SEGA doing more money than expected with PSO2 and Sammy losing with Pachinko. So, no bad news for SEGA. SEGA is doing their part, if Sammy is doing wrong, that’s not gonna affect the games.

    • http://www.siliconera.com/ Ishaan

      That isn’t true at all. Both pieces of news were reported together in the same document by Sega. What one of the company’s different divisions does most assuredly has a bearing on the others.

      • http://www.facebook.com/antonio.apf.9 Antonio Apf

        SEGA is responsible for games and arcades, and Sammy is responsible for Pachinko and Pachislot. Even if they are the same company, the SEGA part of the company did well with PSO2 and not only that, i read more the document and they are praising “strong sales in software package”, probably the Miku game.

        If SEGA is doing money and Sammy not, Sammy, the leader of the company, is going to keep SEGA strong and nothing is gonna happen with the games, they will just rethink their pachinko strategies. When SEGA was losing money and Sammy was making money, what they did? They changed everything in SEGA, but they keep the Same thing with Sammy. They are not gonna change SEGA now, that is finally being profitable (And btw,  Sammy is one of the richest companies in Japan, everything is fine with them, some loses on pachinko are natural after years of $$).

        Again, this is great news for SEGA, because after continuous reports of SEGA losing Sammy’s money, now you have SEGA being profitable again (btw, they were always profitable on arcades, the problem was the home division). 

        • http://www.siliconera.com/ Ishaan

          If you insist.

  • sd28

    looks like they need  a sonic game on Nintendo hardware since they always seem to sell well

  • SirRichard

    Well, it’s not the best of news, but at least it isn’t more totally bad news for them. Hopefully Sega will turn this around at some point.

  • Just Tim

    Just reading this article further proves the old business adage to not put the eggs in one basket.

  • Mrgrgr and Unacceptable World

    Sega needs to come out the “BOG” there.^_^ I am sure that all Japanese will bite and spend their whole savings only to get the Jackpot lol.^_^

  • http://www.facebook.com/people/Akshat-Jiwan-Sharma/1187421478 Akshat Jiwan Sharma

    Well its good to know that even free to play games can turn a profit.Well done sega.

  • http://www.facebook.com/people/Akshat-Jiwan-Sharma/1187421478 Akshat Jiwan Sharma

    Looks like the profits will only increase once the vita and IOS versions come out.

  • DietSoap

    Awesome, so glad to hear news of a good game performing well finally.

  • Tom_Phoenix

    There is a simple explanation as to why Sega Sammy’s Pachinko sales are down. They don’t have Nicholas Cage doing commercials for them.

    https://www.youtube.com/watch?v=nVMziCNFF1I

  • puchinri

    Hmmm. . . I hope there’s no implication of that affecting the console gaming half of things? I really think those parts of the company should be kept entirely separate. I can see how it’d influence some of their decisions all around though, but I feel like I don’t like where that might go.

  • Tai Chi

    It’s not surprising that PSO2 is very profitable.

    For awhile there, I was hunting for deals on cheap AC costumes so I could get some color change coupons (you need for 14 of them). You’d be surprised on how often new costumes hit the market and how quickly they get snapped up by bargain hunters. If you don’t have fast fingers, you lose out!

    Now when you think of how expensive AC Scratch costumes are (one try is 200AC/yen for regular and 500AC/yen for gold), you can see how much SEGA must be raking in!

    Yes, free-to-play games for very, very profitable. Sadly, F2P games tend to have many terrible problems that could lead them to closing down early. I don’t see this game lasting a decade, like they were originally planning. As much as I’m enjoying this game, I’s say it has about 5 years.

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