After digital game releases appeared to be an albatross in FY 2019 for Sega Sammy, the company’s first quarter 2020 earnings released this week paint a much more positive and healthy picture for the Entertainment Contents Division, as well as the company in whole.
Operating income, or profit, jumped in whole from $8.6 million to $31.3 million for the quarter, on revenue increases of just over five percent, to $670 million.
Entertainment contents, or the division Sega’s games and arcade titles are a part of, are the company’s strongest division. Revenue for the quarter jumped about 18 percent to almost $490 million. Profit in just this division nearly tripled during the period that ended on June 30th, from $15.4 million to $45.6 million.
Sales of both digital and physical titles were on the increase. Sega did note physical re-releases were starting to slow, but that on the whole, physical was the strongest component with more than $135 million in sales. Digital also rebounded, accounting for nearly $110 million in sales for the quarter.
Specific sales went largely not cited, but Total War: Three Kingdoms, Team Sonic Racing, and Judgment accounted globally for 2.3 million combined units sold, according to the company report. TW: Three Kingdoms in particular was called out for its strong success of selling a million copies in under a week’s time. Sega also anticipates the launch of the Mega Drive Mini and Mario and Sonic at the Olympic Games Tokyo 2020 to be strong performers in Q2 and beyond.