Sega Reports Strong Q2 as Operating Income Climbs 42%

Sega has reported its second-quarter results for 2026, with a major jump in its pachislot and pachinko machines business helping the company beat expectations.

Operating income in that segment surged 331.6%. The Entertainment Contents division also performed better than expected, even though its revenue slipped 2.4% to ¥145.1 billion ($916.8 million).

Key Numbers

For the three months ended September 30, 2026:

• Net sales: ¥212.5 billion ($1.3 billion), up 5.6% year-on-year

• Entertainment Contents net sales (including games): ¥145.1 billion ($916.8 million), down 2.4%

• Operating income: ¥14.2 billion ($89.7 million), up 42% year-on-year

Game Sales

The picture was mixed. According to Sega’s report, full game sales fell 23.5% to ¥20.5 billion ($129.5 million), down from ¥26.8 billion ($169.3 million) a year earlier. Unit sales told a different story, though. Sega sold 10.6 million full game units, up from 9.3 million in the same period last year.

The split between new releases and older titles explains much of this:

• New titles: ¥0.3 billion ($1.8 million), down from ¥8.7 billion ($54.9 million)

• Catalogue sales: ¥20.2 billion ($127.6 million), up 12.2% from ¥18 billion ($113.7 million)

Free-to-play sales “performed slightly below expectations,” falling 3.3% to ¥26.0 billion ($164.3 million). DLC and subscription services “performed steadily,” while Rovio “performed generally in line with expectations.”

Looking ahead, Sega expects “expansion in new title and catalogue sales” through its sales transformation initiatives. It also anticipates higher licensing revenue as its transmedia rollout continues.

Upcoming Games

The report also highlighted early interest in two major releases:

• Stranger Than Heaven (January 2027): Wishlists have passed one million, “outperforming benchmark titles at the same stage before release.” Sega also noted that “new users account for approximately half of wishlist registrations.”

• Persona 4 Revival (February 2027): Wishlists have passed two million and are likewise outperforming benchmark titles. The report noted that “a high proportion of registrants have purchased multiple titles in the series.”

Strong wishlist numbers do not guarantee sales. Still, they give Sega a healthy reason for optimism as it heads into a busy early 2027.