Japanese giant Sega Sammy has reported a modest four per cent increase in its games sales for the three months ending December 31st, 2023.
In its release to investors, the company reported that its entertainment contents – i.e. games – business brought in ¥219.3 billion ($1.47 billion) for the quarter, while operating income declined by a massive 52.5 per cent to ¥18.8 billion ($126 million).
Ordinary income clocked in at $19.7 billion ($132 million), a 52.5 per cent decrease.
Compared to the overall business, games massively underperformed. Sega Sammy’s overall netsales were up 130.3 per cent, while ordinary income rose 42.7 per cent. Operating income, similarly, rose 42.4 per cent.
Sega says that its acquisition of Rovio in 2023 helped boost its net sales, but in its report said that the overall games market, in particular in the US and Europe, had “reached a plateau” due to the economic damage of inflation.
“In addition, game development costs continue to rise, and there is an urgent need to respond to these changes in the business environment,” the company wrote.
“However, expectations for the growth of the game market continue as the diversification in terms of service provision resulting in an environment having been created in which content and services can be delivered globally over the long-term, regardless of device or platform.”