Sega Sammy Holdings Actual Results for the Third Quarter: Year Ending March 2013

Key insights

6 takeaways

01
Sega Sammy Holdings reported a decline in sales and income for the third quarter of the fiscal year ending March 2013, leading to a downward revision of the full-year operating forecast.See it on page 1
02
The Pachislot and Pachinko Machines Business underperformed due to a difficult market and the strategic decision to postpone major Sammy brand titles, including Hokuto no Ken, to the next fiscal year.See it on page 2
03
The Consumer Business returned to profitability, driven by structural reforms in Western markets and strong performance in the digital gaming sector.See it on page 2
04
Digital gaming titles such as Phantasy Star Online 2 maintained momentum, while mobile games including Dragon Coins and the Kingdom Conquest series achieved significant download milestones.See it on page 2
05
Amusement Machine Sales declined due to a development cycle gap, while Amusement Center Operations suffered from a reduction in total operating centers and lower domestic same-store sales.See it on page 1
06
The company implemented structural cost-saving measures and reduced advertising expenses across the organization to mitigate the impact of revised sales schedules.See it on page 2

Summary

Sega Sammy Holdings experienced a decline in sales and income during the third quarter of the fiscal year ending March 2013, primarily driven by underperformance in the Pachislot and Pachinko Machines Business. This segment faced challenges due to a difficult market environment and the strategic decision to shift the sales period for several key titles into the following fiscal year. Consequently, the company issued a downward revision for its full-year operating forecast, specifically citing the postponement of major Sammy brand titles like Hokuto no Ken and weak sales of non-major pachinko machines.

The Amusement Machine Sales and Amusement Center Operations segments also reported decreased results. The former suffered from a development cycle gap that limited the release of new major titles, while the latter was impacted by a reduction in the total number of operating centers and a decline in domestic same-store sales. Advertising expenses across the organization were notably reduced as a result of these revised sales schedules and structural cost-saving measures.

Despite the broader downturn, the Consumer Business achieved a return to profitability through structural reforms in Western markets and strong performance in the digital gaming sector. Key titles such as Phantasy Star Online 2 maintained momentum, while mobile offerings like Dragon Coins and the Kingdom Conquest series saw significant download milestones. Looking ahead, the company intends to focus on revenue-sharing models in the amusement sector and the release of new digital and packaged software titles to stabilize earnings. These results reflect a period of transition characterized by cautious inventory management and a strategic pivot toward digital content to offset volatility in traditional hardware markets.