By Sagar V. Mankar 
Sega Sammy has released its financial report for the nine months ending December 31, 2024, revealing a mixed performance across its business divisions. Among the major announcements, the company confirmed the cancellation of Football Manager 2025, which had already faced delays.
Financial Performance Overview
According to Sega’s report, the company faced an overall decline in net sales and profit. However, its Entertainment Contents division, which includes video games, saw an impressive 88% increase in profits, largely driven by the success of Sonic the Hedgehog 3.
Here are the key financial figures for the period:
- Net sales: ¥322.3 billion ($2.1 billion), down 8.1% year-over-year
- Operating income: ¥43.7 billion ($287.9 million), down 20.8% year-over-year
- Ordinary income: ¥49.4 billion ($325.4 million), down 13.9% year-over-year
Key Factors Behind Financial Decline
As per the reports, Sega attributed part of its financial decline to the sale of overseas developer Amplitude Studios in November 2024. The sale resulted in a loss of approximately ¥6.1 billion ($40 million) following a management buyout.
Despite these setbacks, Sega’s Entertainment Contents division remained a strong performer. The segment, which includes video game sales, recorded net sales growth of 8.2% to ¥238.6 billion ($1.5 billion), while profits soared 88% to ¥37.5 billion ($246.9 million).
Major Game Releases and Performance
During the reporting period, Sega launched two major titles:
- Metaphor: ReFantazio (Released: October 11, 2024) – Exceeding sales expectations, selling 1 million units in single day
- Sonic X Shadow Generations (Released: October 22, 2024) – Surpassed 2 million units in global cumulative sales
Both titles contributed significantly to the company’s revenue, especially with Sonic X Shadow Generations continuing to show strong sales momentum.
Cancellation of Football Manager 2025
In one of the biggest shockers of the quarter, Sega officially canceled Football Manager 2025, which was originally set for a March 2025 release. The game had already been delayed in October 2024, with Sega citing difficulties in ensuring the “product quality” expected.
The company recorded a loss due to the write-down of inventory assets associated with the title. However, it has confirmed that development assets from Football Manager 2025 will be used in a future sequel.
Success in the Sonic Franchise and Transmedia Strategy
Elsewhere, Sega’s animation division saw massive success following the release of Sonic the Hedgehog 3 on December 20, 2024. The film grossed $460 million worldwide, making it the second-highest-grossing video game adaptation of all time.
Sega emphasized that Sonic remains a crucial part of its transmedia strategy, integrating games, movies, and other media formats to expand the franchise’s reach.
Revised Financial Forecast for FY25
Based on its latest performance, Sega has adjusted its financial outlook for the fiscal year 2025:
- Net sales are now expected to reach ¥445 billion ($2.9 billion), up from the previously estimated ¥425 billion ($2.8 billion)
- Operating income is forecasted at ¥46 billion ($303.1 million), slightly up from the earlier estimate of ¥45 billion ($296.5 million)
Game Sales Breakdown
For the nine months ending December 2024:
- New game sales: 4.7 million units (compared to 5.2 million in the same period last year)
- Catalogue game sales: 20 million units (up from 13.8 million)
- Total Full game sales: 24.8 million units (up from 19.1 million)
Looking Ahead
Sega remains focused on expanding its gaming portfolio and transmedia strategy. For Q4 of FY2025, the company announced two games:
- Virtua Fighter 5 R.E.V.O – Jan. 28, 2025
- Like a Dragon: Pirate Yakuza in Hawaii – Feb. 21, 2025
While the cancellation of Football Manager 2025 marks a setback, the company’s strong sales in Entertainment Contents and its blockbuster Sonic franchise suggest a promising future.
Sources: Sega Sammy Q3 Financial Report for Finacial Year 2025