Sega Posts Lower Game Sales but Higher Profits, Thanks to Strong Back Catalog and Key Titles

Sega Sammy Holdings has released its financial results for the year ending March 31, 2025, and the numbers paint a surprising picture: even with fewer new games and lower overall sales, the company still managed to pull off a solid profit in its console gaming division.

According to the report, Sega’s console game business brought in about $1.5 billion in sales—a 3.2% drop compared to last year. But here’s the twist: operating profit actually climbed by 28.3%, reaching $189 million.

So how did Sega pull off higher profits with fewer sales? It all comes down to fewer game releases paired with a huge boost from older titles. The company released only six new games during the fiscal year, down from 13 the year before. That cut new game unit sales down from 9.23 million to 6.57 million.

But the real hero here was Sega’s back catalog. Sales of older titles surged from 18.66 million to 24.87 million units, translating into a 29.6% jump in revenue from legacy games. It turns out that classics still sell—especially when paired with smart promotions and ongoing DLC support.

Key Titles Pulled Their Weight

Despite a trimmed release schedule, several new games performed exceptionally well. Highlights included:

• Sonic X Shadow Generations

• Metaphor: ReFantazio

• Like a Dragon Gaiden: Pirate Yakuza in Hawaii

These games, combined with strong DLC sales and licensing revenue, helped soften the financial blow from the cancellation of Football Manager 25.

Other notable releases for the year included:

• Shin Megami Tensei V: Vengeance

• Super Monkey Ball Banana Rumble

• Virtua Fighter 5 R.E.V.O.

• Two Point Museum

Mobile and PC F2P Games Took a Hit

Not all segments had a good year, though. Sega’s mobile and online free-to-play division—which includes PC and mobile games—saw revenue fall 12.6% to $318 million. The reason? No new F2P titles launched during the fiscal year, and at least one existing game was shut down.

Currency Gains Helped Overall Outlook

Interestingly, the weaker Japanese yen gave Sega a bit of a boost across the board, helping to cushion the dip in sales and lift profits. That currency edge, paired with evergreen franchises and smart portfolio management, helped Sega finish the year stronger than expected.

Looking Ahead: Switch 2 Titles and Franchise Revivals

Looking forward, Sega expects new game sales to remain at similar levels in the upcoming fiscal year, but back catalog sales are projected to rise even further due to new ports and Switch 2 release.

The company has also revealed an ambitious slate of upcoming releases, especially for Nintendo’s next-gen console. Sonic X Shadow Generations for Nintendo Switch 2 is set to launch on June 5.

Other titles include:

• Virtua Fighter 5 R.E.V.O., expanding to PS5, Xbox Series X|S, and Switch 2

• Two Point Museum, also getting a Switch 2 version sometime in 2025

• Switch 2 exclusives: Yakuza 0: Director’s Cut and Puyo Puyo Tetris 2S, both dropping on June 5

On the mobile and PC side, Sega plans to launch Persona 5: The Phantom X in Japan this summer, and Sonic Rumble later in 2025.

In addition, Sega is investing in several beloved franchises, with new projects in development for Crazy Taxi, Golden Axe, Jet Set Radio, Streets of Rage, and Alien: Isolation. Platforms and release windows for these titles haven’t been announced yet, but the revival of these classics is sure to catch longtime fans' attention.