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  • SEGA Sammy Financials: Pachislots up, Video Games Down in Q3 2023

    Good for gaming (gambling), bad for gaming (video).

    With another fiscal quarter complete, it's time once again for a trip to the Financial Zone, aaaaaannnndddd... this time it's not all roses and Super Games.

    Perhaps the biggest item of note is that SEGA Sammy has reduced their overall forecasts by about 10 billion yen (or about $67 million after conversion). While the resorts expect to hold steady and the pachislot forecast is actually increasing, it's not expected to fully make up for underperforming game software sales. SEGA Sammy specifically calls out less than expected sales of Sonic Superstars, ENDLESS™ Dungeon (yes, only ENDLESS gets a trademark for some reason), and Total War: PHARAOH (I assume you have to shout "PHARAOH" when you say the name).

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    Some fans have been quick to place blame on Sonic Superstars, and that may be valid: SEGA chose a particularly nasty release window and cited that game specifically during their forecast revision. However, it is one of a staggering 10 new retail games and ports released this fiscal year, not counting expansions and subscription-service games. To editorialize just a bit, perhaps it's not wise to release three new Sonic games (yes, I'm including The Murder of Sonic the Hedgehog) and two major Sonic game expansions in a single year, or to assume that a rising Frontiers lifts all ships in equal measure.

    SEGA notes that sales numbers did increase thanks to the acquisition of Rovio, even if overall profits fell. Angry Birds 2 and Angry Birds Dream Blast continue to represent the highest moneymakers, leaving everything else to fight over scraps (and by scraps, I still mean multiple millions of Euro in sales per quarter).

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    Despite the quarter's under-performance, SEGA was quick to tout recent successes, including both Like a Dragon: Infinite Wealth and Persona 3 Reload quickly hitting the million sales mark, a speed record for each of their respective franchises. SEGA Europe, which saw major layoffs last year, is still expected to investigate "structural reforms."

    And finally, to wrap up with the most important news, last year's Fist of the North Star pachislot machine has moved 84 thousand units. I know this is an important detail to the Sonic fan community, and I didn't want to leave it out.

    You can find the full Q3 Results Presentation directly here, or on SEGA Sammy's Investor Relations website.

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    Hmm....no big releases, well...superstars; but that was divicive as it was old school but not old school and was a tad over priced for what it was....frontiers is a good year old. Not sure if this is actually pretty good for Sonic in that context.

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    Sonicka

    Posted (edited)

    I think that they may have bet a little bit too big with Superstars.

    The price was not worth the overall value & it came out 3 days before a major rival platformer released (which was also cheaper to buy). 

    That being said, even if it was a quality title (like Wonder) I still believe it would have struggled against the competition.

    I think that poor release timing, that it wasn’t Sonic Mania 2, and the assumption that Frontiers huge sales would boost into Superstars based on the IP alone was just some misguided calculations here. Also don’t forget that Origins Plus released just months prior - so there could be some burnout on the 2D platformer side. 

    Ultimately, the consumers know what they want, and it clearly wasn’t this game (or as much as SEGA hoped anyway).

    Fingers crossed that the Knuckles series and the 3rd Sonic Movie’s criss cross media promotion will help drum up some interest for the next game entries. I’m very intrigued to see how Sonic x Shadow Generations is going to perform in the run up in lieu of this. 

     

    Edited by Sonicka
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    Superstars certainly didn't have Mania's word of mouth.  It's unfortunate that it will probably be judged not on its individual failings but on the kind of game it is.

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    Sonicka

    Posted (edited)

    Darn it - phone goof replicated my post when I was just trying to edit it. *ignore*

    Edited by Sonicka
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    Wraith

    Posted (edited)

    https://www.ign.com/articles/sega-issues-financial-warning-after-sluggish-sales-of-sonic-superstars-endless-dungeon-and-total-war-pharaoh

     

     


     

    Quote

    Sega has issued a financial warning after what it called “sluggish” and “weak” sales during the crucial holiday 2023 period.

    Reporting its financial performance for the nine month period ending December 2023, Sega said it had revised its sales and profit forecast down “mainly due to weak sales” of new games released during the third quarter of the financial year.

    “In the Consumer area, although we released some new titles in Q3, including Sonic Superstars, Endless Dungeon, and Total War: Pharaoh, sales went sluggish during the holiday sales season,” Sega said.

    The company also recorded losses associated with an inventory write-down “in response to these sales conditions”. “As a result of these factors, etc., both sales and ordinary income are expected to be lower than previous forecast,” Sega said.


    Financials are still remarkable overall for Sonic, with 5 million units sold for the franchise overall, but it seems Sega had expectations of premium sales for Superstars when 1. It released in the busiest week of the year and 2. it never looked like a premium title, to be honest. I think their expectations were a bit misplaced here. I know a lot of people who would have bought it but were priced out by the premium angle.

    Superstars's marketing didn't even properly begin until it was already released, so perhaps the continued price cuts and word of mouth will give it the solid legs these games tend to have.

     

     

    Edited by Wraith
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    Rabbitearsblog

    Posted

    I can see why Superstars didn't sell as well as SEGA hoped.  For one thing, we didn't even know about this game until the last minute, so many people weren't aware of this game and therefore, there was barely any hype for this game when it finally did release.  And another thing, it was competing against Mario Wonder, which is probably the worst thing SEGA could have done for this game.  If SEGA had actually promoted Superstars a little better, then maybe this game would have done better in sales.

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    Also they charged way too much for it and that factored in to why it so frequently got clowned in reviews.

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    I'm recomending Sonic games to people for some reason... and this is the reason! DON'T SELL GAMES ON THE SAME WEEK AS A MARIO GAME.

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    Mario Wonder probably had much less to do with these numbers than y'all are attributing to it.

     

    The entire reason Superstars even exists over something like a Mania 2 is because they were looking to maximize the profitability of the 2D style well above its ceiling. There has never been a hint of an indication that the 2D games have had a ghost of a chance of inspiring the kind of momentum that Frontiers pushed in todays market. Mania itself, which was essentially Jesus second coming, did not garnish that type of hype despite is acclaim and stellar reputation. If Mania didn't hit that threshold, what hope would any 2D game have in the near future?

    Superstars didn't sell poorly per se, it under-performed when bench-marched against Frontiers. Sega was chasing fools gold from the start, thinking that those numbers were a good target to aim for. They got swept up in their own hype a bit.

     

    Persona and Yakuza will push the numbers in the next quarter, so I'm not worried about the overall down-tick in sales.

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    eh there was a lotta potential for superstar ik its a good game but ik it could be better

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