Summary
Sega Sammy’s revenue has declined for the second year in a row, according to the company’s earnings report for fiscal year 2025. However, the gaming giant’s latest financials also include some encouraging signs forSega’s near-future prospects.
Between 2015 and 2024, Sega surpassed $3 billion in annual earnings every other year on average. While most companies in the gaming industry experienced a pandemic-propped business boom in 2020, Sega actually posted a 15.77% drop due to the collapse of its arcade business. The group also saw declines over the next two years, though 2023 more than made up for them with a 22.79% rebound. For fiscal year 2024,Sega reported a modest revenue dipof 3.15%, bringing in the equivalent of $3.19 billion.
On May 12,Sega sharedits consolidated financial report for fiscal year 2025, confirming another year of declining earnings. During the 12-month period ending March 2025, the company generated approximately $2.89 billion in revenue, a 9.4% year-on-year decrease. The slump was largely attributed toSega’s pachinko business, which experienced a significant 27.1% drop in net sales.
Sega’s Forecasting Return to Revenue Growth in 2026
While this marks Sega’s second consecutive year of declining revenue, the Tokyo-based group expects to reverse the trend soon, forecasting $3.2 billion in earnings for FY 2026—a 10.7% increase. The company’s video game business is projected to grow 11.1% during this period. At the same time, profit attributable to owners is expected to drop 16.8%. To assuage investors, the group plans to increase its annual dividend per share to ¥55.00 (~%0.37), up from ¥52.00.Sega’s stockspiked over 6% in after-hours trading on the back of its earnings report.
Sega’s Older Games Are Outselling New Titles 4-to-1
Sega’s latest financials show that its back catalog continues to drive the bulk of its video game sales. During fiscal year 2025, the company sold 24.87 million “Repeat” titles—i.e., games released in previous years—compared to just 6.57 million new releases, a 4-to-1 ratio. Despite the lower volume, new titles nearly matched older ones in revenue thanks to higher average prices, bringing in $226 million versus $289 million. However, Sega’sfree-to-play games likePersona 5: The Phantom XandSonic Rumbleoutperformed both, generating approximately $317 million in revenue. For fiscal year 2026, Sega forecasts approximately $451 million in F2P revenue, as well as $300 million in “Repeat” game net sales. Earnings from new title sales are projected to remain flat during the current fiscal year, which kicked off on April 1.
Personatitles were among the highest-performing products in the “Repeat” games segment during FY 2025. Even though the long-running series received no new entries between April 2024 and March 2025, 3.58 millionPersonagames were sold in this period.
