Sega Sammy Q1 2025-26 Results Show Sales Decline, Banking on Stronger Second Half

Persona 5: The Phantom X

Sega Sammy has reported its financial results for the first quarter of the 2025–26 fiscal year, showing a notable decline in both sales and profit compared to the same period last year.

For the three months ending June 30, 2025, the company posted net sales of ¥81 billion ($548 million), down 22.7%, and recorded an operating loss of ¥519 million ($3.5 million), a sharp contrast to the ¥18.9 billion ($130 million) operating income in the prior year.

The Entertainment Contents segment — which includes Sega’s gaming business — saw net sales drop 6.7% to ¥67.7 billion ($458 million), while operating income fell 39% to ¥7.1 billion ($48 million). As per Sega, this was largely due to "fewer new titles" being launched in the quarter and "repeat sales" from its back catalog performing weaker than expected. However, the decline in operating income was "narrower than anticipated," thanks in part to steady sales of newly released games.

One of the bright spots for Sega was the launch of Persona 5: The Phantom X, a free-to-play title that debuted in June. The game surpassed 1.5 million downloads on its first day, performing "stronger than expected." Still, total new title sales reached just 610,000 units in the quarter, down from 710,000 last year.

Catalogue sales also fell to 4.3 million units (from 5.1 million), bringing total full game sales to 4.9 million, down from 5.8 million.

The quarter’s lineup, which included Raidou Remastered and Warhammer 40K: Space Marine Master Crafted Edition, met internal expectations but failed to offset the back catalog shortfall.

Sega also highlighted its transmedia strategy aimed at creating "a virtuous cycle of IP value enhancement and revenue expansion," with plans to diversify its portfolio globally, including franchises like Sonic. This effort extends beyond gaming, covering animation, licensing, and even physical retail — marked by the opening of the first Sega Store Tokyo in July.

Looking ahead, Sega is keeping its full-year forecast unchanged, banking on major releases later in 2025, including a new Sonic Racing game and the next Football Manager title. While the first quarter brought challenges, Sega believes the second half of the year could turn things around, especially with stronger releases and a broader push to grow its IP across multiple platforms and markets.