Sega Sammy released the financial report for the second quarter of the 2020 fiscal year that ends in March 2021. The company saw a deficit in Q2 of the fiscal year, with an operating loss of ¥3 billion.
The only profitable segment in the first half of FY 2020 was the Consumer area—which consists of the console, PC, and mobile games—which brought in ¥20.3 billion in operating income. While the Animation / Toy area also contributed a little to income to the tune of ¥200 million, that profit was completely offset by losses of ¥1.9 billion from amusement machine sales, ¥2.7 billion from amusement center operations, ¥2.6 billion from resorts, and ¥12 billion from pachinko machines.
The deficit was further exacerbated by extraordinary losses of almost ¥21 billion. ¥2.56 billion were lost in the first half, due to the impact of the COVID-19 pandemic, and a further loss of ¥18.4 billion was recorded as the group transferred shares of Sega Entertainment—which manages amusement facilities—to GENDA. It predicts a further loss of ¥12.1 billion for the remainder of the fiscal year, from which ¥10 billion will be attributed to the voluntary layoffs of 650 staff members.
The Consumer area saw a strong performance in repeat sales of existing titles, most of which came from outside Japan. The recently released free-to-play games based on Hatsune Miku and Re:Zero performed well. Sega Sammy also received royalties from some of the newly released titles, and it expects these existing title performances to stay strong for the rest of the fiscal year while also releasing new titles.
The latest full game released by Sega Sammy in Q2 of the 2020 fiscal year is A Total War Saga: Troy for PCs. Sega subsidiary Atlus also recently released Shin Megami Tensei III Nocturne HD Remaster for the PlayStation 4 and Nintendo Switch in Japan on October 29, 2020, with a the Western release currently slated for Spring 2021.
For the third quarter and beyond, the group will release the Western localization of Yakuza: Like a Dragon, Puyo Puyo Tetris 2, Humankind, and Shin Megami Tensei V. It will also launch the free-to-play mobile game Sakura Revolution, which takes place in the Sakura Wars universe.