Updated Jun 1, 2026 by SegaSammy
The company swung to a ¥5.7 billion operating loss in FY2026 from a ¥48.1 billion profit in FY2025, primarily due to goodwill impairments on Rovio and Stakelogic and underperforming new game titles.
Total sales rose 13% to ¥487.5 billion, though net equity contracted by ¥48.7 billion as cash reserves were depleted by the acquisitions of GAN and Stakelogic.
Entertainment Contents operating income fell to ¥32.4 billion from ¥40.8 billion, with FY2027 recovery projections of ¥42.5 billion contingent on successful new IP launches and increased licensing revenue.
The company is shifting its capital allocation strategy by pausing large-scale M&A and prioritizing shareholder returns, with a 50% total-return ratio applied to projected net income for FY2027.
The FY2026–FY2027 investment plan totals ¥190 billion, comprising ¥80 billion for development, ¥120 billion for strategic acquisitions, and ¥70 billion for share buybacks.
Pachislot performance remains supported by flagship IPs like 'Hokuto No Ken,' while the company plans to introduce reel-exchangeable cabinets to capture 20% of pachislot revenue.
The FY2026 release schedule focuses on multi-platform titles, including a slate of global releases and a strategic alignment with the Nintendo Switch 2 launch in March 2026.
The company swung to a ¥5.7 billion operating loss in FY2026 from a ¥48.1 billion profit in FY2025, primarily due to goodwill impairments on Rovio and Stakelogic and underperforming new game titles.
Total sales rose 13% to ¥487.5 billion, though net equity contracted by ¥48.7 billion as cash reserves were depleted by the acquisitions of GAN and Stakelogic.
Entertainment Contents operating income fell to ¥32.4 billion from ¥40.8 billion, with FY2027 recovery projections of ¥42.5 billion contingent on successful new IP launches and increased licensing revenue.
The company is shifting its capital allocation strategy by pausing large-scale M&A and prioritizing shareholder returns, with a 50% total-return ratio applied to projected net income for FY2027.
The FY2026–FY2027 investment plan totals ¥190 billion, comprising ¥80 billion for development, ¥120 billion for strategic acquisitions, and ¥70 billion for share buybacks.
Pachislot performance remains supported by flagship IPs like 'Hokuto No Ken,' while the company plans to introduce reel-exchangeable cabinets to capture 20% of pachislot revenue.
The FY2026 release schedule focuses on multi-platform titles, including a slate of global releases and a strategic alignment with the Nintendo Switch 2 launch in March 2026.