SEGA posts decline in boxed product, shifting focus to digital offerings

SEGA has posted a decline in revenues and profit for full FY11 and cited a weak demand in the home console market as the main culprit for the the losses.

The firm's Consumer Business sector was the only part of the business to report a loss, with sales of gaming titles in the US and Europe falling from 18.7 million the prior year to 17.2 for fiscal 2011. Sales in Japan and Europe increased year-over-year and US sales decline from 7.8 million the year prior to 6.1 million in 2011.

Total revenues for the sector declined 3.6% to ¥85.6 billion ($1.1 billion) for FY11, with digital and packaged good contributing ¥66.4 billion ($831.9 million) in revenue. Losses for the sector were ¥15.1 billion ($189.2 million).

Mario & Sonic at the London 2012 Olympic Games moved 3.28 million copies combined on 3DS and Wii, and Sonic Generations moved 1.85 million units across all platforms. Virtua Tennis sold 1.04 million units across all platforms, while Yakuza: Dead Souls moved 550,000 units on PS3. Football Manager 2012 sold 710,000 copies on PC and PSP.

Wii titles moved 3.05 million units, PS3 games moved 2.45 million units, 3DS games moved 1.79 million and Xbox 360 titles moved 1.54 million copies.

With a decline in the home console market, for the current fiscal year and beyond, SEGA has decided to focus more on digital and mobile as the sector continues excel. Most notably, the firm's mobile title Kingdom Conquest has seen over 2.5 million downloads since the Android version was released in December.

In order to take advantage of its new, digital initiative, SEGA plans to split its game development and Internet services and form a new subsidiary called Sega Networks, which will focus on online products while Sega Corporation will continue developing console titles.

Thanks, Gamasutra.