Amid an earnings slip, SEGA re-focuses development on existing IPs and will bring more of its key franchises and games overseas.
SEGA didn't do too well in its FY2018 earnings. The company's yearly profits plummeted over 70% to $23.82 million, and its Road to 2020 roadmap of games earnings has fallen apart due to market miscalcuations, too many games in development, lack of sales performance, and game delays. As SEGA says, the plan "fell significantly below the initial plan due to deterioration of business environment and lack of hit titles."
But SEGA has a plan: do more of what's actually working. And right now that means doubling-down on popular franchises like Persona, Yakuza, and Sonic and straying away from developing too many new IPs. Instead the games-maker will focus strongly on proven hits while also throwing in a remaster/re-release or two.
PC gaming also did quite well throughout FY2018 thanks to big games like Yakuza 0 and Yakuza Kiwami coming to the platform, and SEGA sees big opportunities for increased earnings. SEGA has plans to keep porting games over to PC storefronts like Steam in a bid to maximize reach, exposure, and sales across all gaming segments.
PS4 exclusivity will continue breaking down as SEGA adopts this multi-platform approach. The publisher affirms its new games will come to all systems, from PC to mobile and even next-gen consoles like the PlayStation 5.
It also plans to revive dormant IPs and fan-favorite content while launching special re-releases like the SEGA Genesis Mini. We could even see a Sega Saturn Mini at some point as the company embraces this new tactic.
Right now SEGA has three unannounced titles in development. Based on this new strategy, we're betting all three of them are for existing hit franchises and not new IP like Judgement.
One of these new projects is confirmed to be a fresh Yakuza game.
Retail packaged games are also a part of this plan, particularly games brought overseas to North America. SEGA enjoyed strong packaged sales in FY2018 despite a good portion of gamers moving towards digital. Retail game sales revenues were down 4.21% year-over-year to $492.335 million, but the amount of games sold increased by 35.25% YoY to 23.44 million units globally.
Package game sales rose the most in North America and Europe, jumping nearly 40% YoY to 20.82 million.
SEGA has all the know-how and IP to turn this around. FY2018 should just be an earnings slip as the company pivots towards proven money-making strategies, and we should see some exciting announcements at E3 2019 and beyond.
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