Football Manager

Results Presentation: Q3 for the Fiscal Year Ending March 2025

This financial presentation details the consolidated results for Sega Sammy Holdings for the third quarter of the fiscal year ending March 2025.

• Sega Sammy revised its full-year ordinary income forecast upward to 51.5 billion yen, despite a year-to-date net sales decrease to 322.3 billion yen for the fiscal year ending March 2025.
• The Entertainment Contents segment drove performance through successful launches of Metaphor: ReFantazio and Sonic X Shadow Generations, alongside strong results from the Sonic the Hedgehog cinematic franchise.
• The company recorded an inventory write-down following the cancellation of Football Manager 25, impacting the consumer games division.

Quick Updates: Games Workshop, Cover Corp, Toei Animation, Sega Sammy and More

This analysis provides a series of financial and operational updates for several prominent companies within the global gaming, animation, and entertainment sectors as of November 2024.

• Bandai Namco revised its annual profit estimates upward by 36%, fueled by the successful release of the game Dragon Ball Sparking! Zero.
• Toei Animation reported a 20% profit increase for the first half of the fiscal year, driven by strong overseas royalties from the One Piece and Dragon Ball franchises.
• Cover Corp achieved a 14% revenue increase and 30% operating profit growth in the first half of the fiscal year, despite a $3 million provision for U.S. sales tax compliance.

Ask George: September 2024

The September 2024 edition of the Video Games Industry Memo serves as a Q&A-style commentary, providing personal insights into the gaming habits of industry analyst George Osborn while touching upon broader sector trends.

• The esports sector is currently undergoing a critical evaluation to determine if the industry has moved past its peak growth phase.
• Regulatory scrutiny is intensifying regarding the intersection of loot box monetization mechanics and legal definitions of gambling.
• Player engagement trends favor titles that prioritize meaningful agency and world-building, exemplified by RPGs like Pentiment and Fallout: New Vegas.

Level Up: EA Sports Hits, Netflix's Game Expansion, and Retro Collectibles!

The article reports on recent high-profile movements in the gaming sector, focusing primarily on EA Sports’ unexpected success with College Football 25 in the United States.

• EA Sports' College Football 25 generated significant revenue through its $100 premium edition, which sold 2.2 million copies, bolstered by 600,000 additional early-access players via EA Play.
• EA is scaling its monetization strategy for the EA Sports FC franchise by introducing a new premium in-game rewards tier accessible through earned coins or purchased FC Points.
• Netflix is executing a long-term gaming strategy with 80 titles currently in development, aiming for a consistent monthly release cadence over the next six years.

Plus: Risk of Rain Returns, Football Manager Go Out Huge!

This analysis examines the performance of recent video game launches and provides a forward-looking assessment of upcoming releases across major digital platforms, including Steam, PlayStation, Xbox, Nintendo Switch, and Meta Quest.

• Call of Duty: Modern Warfare III dominated the market, topping console sales charts and seeing Steam concurrent users (CCU) surge from 40,000 to 180,000 at launch despite mixed critical reviews.
• Football Manager 2024 maintained its annual market dominance with 78,500 CCU, while Risk of Rain Returns achieved a strong debut of 45,000 CCU, driven by a 93.5% player overlap with its predecessor.
• Like a Dragon Gaiden: The Man Who Erased His Name reached a franchise-record 12,500 CCU on Steam during its second week of November 2023 release window.

Plus: Probing Dave the Diver's Sleeper Hit Origins

This analysis examines the performance of recent PC and console releases, focusing on the unexpected success of Dave the Diver and broader market trends across Steam, PlayStation, Xbox, and Nintendo Switch.

• Major publishers are successfully adopting indie aesthetics to drive engagement, exemplified by Nexon’s sub-brand Mintrocket achieving 4,000 concurrent users and over 2,300 overwhelmingly positive reviews for Dave the Diver.
• Football Manager 2023 demonstrated strong market demand by reaching 72,000 concurrent users on Steam during the early November 2022 period.
• Sonic Frontiers outperformed expectations in its first three days, recording 19,200 peak concurrent users on Steam and an estimated 120,000 owners across PlayStation and Xbox.

Plus: Why Did Inscryption Blow Up?

Analysis of recent market trends reveals that the roguelite card battler Inscryption has emerged as a significant breakout success, surpassing initial expectations with 100,000 units sold and 12,500 concurrent users on Steam shortly after launch.

• Inscryption achieved breakout success with 100,000 units sold and 12,500 concurrent Steam users, driven by the developer's established reputation, a pivot to the popular roguelite card battler genre, and high streamer visibility.
• Publisher Devolver Digital’s platform-wide following provides a significant marketing advantage for indie titles, acting as a force multiplier for initial launch performance.
• Recent momentum is a more reliable indicator of commercial success than long-term follower accumulation, as evidenced by titles like Spire of Sorcery failing to convert high historical interest into active players.

Superstar Session: Lessons Learned When Including Third Party Content in Your Videogame PGCD #2

The session provides an expert overview of the legal complexities involved in integrating third-party intellectual property into video games.

• Developers must secure formal written contracts for all third-party intellectual property, as verbal agreements provide no legal protection and leave studios vulnerable to litigation, injunctions, and revenue loss.
• Copyright protection generally lasts for the creator’s life plus 70 years, though specific jurisdictions like France may extend this duration based on factors such as military service.
• Fair use is a narrow legal defense in the United States that is rarely applicable to commercial video game assets, meaning developers cannot rely on it to avoid licensing requirements.

Sega Sammy Holdings: FY Ended March 2014 Full Year Results Presentation

Sega Sammy Holdings achieved significant financial growth during the fiscal year ending March 2014, characterized by an 18 percent increase in net sales to 378 billion JPY and a substantial 103 percent surge in operating income to 38.5 billion JPY.

• Sega Sammy Holdings achieved strong financial growth in FY2014, with net sales rising 18% to 378 billion JPY and operating income surging 103% to 38.5 billion JPY.
• The Pachislot and Pachinko segment served as the primary financial anchor, while the Consumer Business division successfully turned around through a focus on digital titles.
• Digital revenue was driven by key titles including Phantasy Star Online 2, Chain Chronicle, and Puyopuyo!! Quest, alongside international PC sales from the Total War and Football Manager franchises.

FY Ending March 2012 Interim Results Presentation: Sega Sammy Holdings

Sega Sammy Holdings experienced a complex fiscal landscape during the first half of the year ending March 2012, characterized by a 13.7% decline in net sales and a 21.1% drop in operating income.

Sega Sammy FY 2009 3rd Quarter Results

Sega Sammy faced a period of significant financial instability during the third quarter of fiscal year 2009, characterized by a net loss of 10.8 billion yen despite achieving net sales of 309.0 billion yen.

• Sega Sammy reported a net loss of 10.8 billion yen for the third quarter of fiscal year 2009, despite generating 309.0 billion yen in net sales.
• Management initiated a restructuring plan that includes a 20 percent reduction in research and development expenditures and the closure of underperforming amusement facilities.
• The company is exiting the pachinko and pachislot peripheral business entirely to focus on core profitable segments.

Sega Sammy Fiscal 2020 Interim Business Report

Sega Sammy experienced a period of strategic transition during the first half of fiscal 2020, characterized by a 3% year-on-year decline in net sales to ¥165.5 billion.

• Sega Sammy achieved a 43% increase in operating income to ¥14.6 billion despite a 3% year-on-year decline in net sales to ¥165.5 billion.
• The Entertainment Contents Business drove profitability with an 8% sales increase and a 108% surge in operating income.
• Growth in the Entertainment Contents division was fueled by global expansion of intellectual properties including Sonic the Hedgehog, Football Manager, and the release of Ryu ga Gotoku 7.