SEGA wants to transform into a 'data-driven' business to fight industry volatility

SEGA's most recent earnings report gives a dour update on the company's performance, but the group hopes to turn things around with advanced new data-tracking capabilities.

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Like most of the games market, SEGA isn't doing incredibly well right now. In its latest report, the company told investors that it would be recording a net loss for the FY26 period for the first time in 11 years. SEGA explains that underperforming content was a primary culprit for the loss, as well as delays in its pachislot/pachinko approvals process.

It seems SEGA needs more guidance, and plans to use data-driven analytics to help steer its course. In the Q3 presentation, the company tells investors that it is reviewing plans for a "structural transformation to a data-driven business." To make this happen, SEGA will establish a group to crunch numbers and examine KPIs, or Key Performance Indicators, while also trying to align its studios and content along the way.

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On the marketing side, SEGA says it will also expand its marketing reach to places where gamers already gather--digital spaces like Discord and Reddit--in an effort to make new user acquisitions.

It's important to note that the strategies outlined here have not yet been approved by management and are currently under review. There's no specifics as to what some things could entail, such as the comments about "redefining the roles of F2P and full games," and it's possible the company could hold more layoffs or conduct more cost-cutting measures as a result of these plans.

"First, as current challenges, we recognize that sales volatility is extremely high, resulting in significant uncertainty in investment recovery. Sales of major Full Game titles have been stagnant, and new F2P titles have struggled. In addition, Football Manager 26 experienced quality issues.

"Furthermore, the shift to digital sales and data utilization has been delayed, and we have not been able to sufficiently maximize the lifetime value of titles. We also recognize that the inefficiencies caused by publishing functions being fragmented by region, and delays in updating marketing methods as other issues.

"As countermeasures, we are currently advancing structural transformation to a data-driven consumer business. We will establish a specialized data analytics organization and redesign KPIs.

"We will also renew marketing evaluation metrics and, in addition to traditional SNS, we will strengthen our approaches to proactively engage with gamer communities such as Reddit and Discord.

"We will also strengthen digital sales centered on IP and redefine the roles of F2P and Full Game to optimize our portfolio. Furthermore, we will continue to strengthen QCD (Quality, Cost, Deliver) management."

The report reiterates that SEGA will launch "four major new titles for mainstay IPs" throughout FY26, which ends in March 2027.

Also included in the report is a revised list of upcoming games, reinforcing SEGA's new slate of titles. These projects include:

• New Virtua Fighter game
• Crazy Taxi
• Golden Axe
• Jet Set Radio
• Streets of Rage
• Alien Isolation 2