Sega reduces its full year forecast

Japanese publisher Sega has lowered both its sales and profit forecasts for the current financial year.

It had initially predicted full-year net sales of $3.38bn and profits of $98.1m. However, those numbered have been revised down to $2.94bn and $44.6m respectively – those are drops of 13 per cent and 55 per cent.

Struggles in the pachinko business are apparently to blame, with sales now expected to come in some 30 per cent below forecasts.

Sega’s entertainment business – which houses games – is faring better this year, however, thanks to successful releases such as Sonic Mania and Total War: Warhammer 2. Overall game sale forecasts were only lowered by $44.5m to $1.9bn, while operating income for the unit is now expected to rise by 30 per cent.

“As to the entertainment contents business, strong performance is evidenced by operating income as of the end of the first half surpassing the previous full year forecast and such,” the company said.

"Although launch of new titles for digital games field might delay compare to initial plan, several new titles include mainstay titles are scheduled to be released in packaged games and amusement machine sales field of the entertainment contents business in the second half, operating income is expected to surpass the previous forecast."

Sega’s most recent release, Sonic Forces, has fared poorly with critics, gaining a lowly 58 per cent on Metacritic. It did win itself a couple of 8/10s, but has also been saddled with scores as low as 4/10.

All of which contrasts with this year’s successful Sonic Mania, which currently sits pretty on 86 per cent on Metatitic.