Sega Sammy posts profits, Bayonetta platinum

Sega parent ends year $218.5 million in the black as high-heeled shooter, Aliens vs. Predator, and Sega All-Stars Racing top 1 million each; Mario & Sonic at the Olympic Winter Games tops 6 million.

Sega Sammy's latest annual financial report bore both good news and bad news for investors. For the full fiscal year ended March 31, 2010, the Sega parent company posted sinking revenues for the fourth straight year, but turned a net profit for the first time in the same time span.

While most of the turnaround could be attributed to the company's surging pachislot business, the consumer business (Sega console and PC games) contributed positively to the bottom line. The game division posted an operating profit of ¥6.3 billion ($68.1 million), compared to a ¥900 million ($9.7 million) operating loss for the previous year.

However, revenues were down 7.5 percent to ¥121.5 billion ($1.3 billion) for the year, with Sega citing weak demand in the US and Europe as a main cause. Moving forward, the publisher said it "needs to adapt to [a] changing business environment" with an expanded emphasis on social networking services and smartphones.

As for the games themselves, Sega Sammy updated sales figures for a number of recent releases. First and foremost, the publisher revealed that Mario & Sonic at the Olympic Winter Games for the Wii and DS has sold 6.53 million copies in the US and Europe. (Nintendo publishes the game in Japan.) The mascot minigame collection wasn't the only Sega title to break the million-unit mark, as Aliens vs. Predator racked up 1.69 million sold and Sonic & Sega All-Star Racing sold 1.07 million copies, both across the US and Europe.

Bayonetta was the company's only worldwide hit, as the Platinum Games-developed actioner sold 1.35 million copies in the US, Europe, and Japan. A pair of Japan-only releases also performed well, with Phantasy Star Portable 2 on the PSP selling 600,000 and Yakuza 4 for the PS3 breaking 560,000.

For the full year, Sega Sammy posted a ¥20.2 billion ($218.5 million) net profit, compared to the previous year's ¥22.8 billion ($246.6 million) net loss. While the bottom line improved, sales were down more than 10 percent year-over-year to ¥384.6 billion ($4.2 billion). Sega Sammy annual revenues have been on the decline since the year ended March 31, 2006.

85 Comments

  • tommy_boy9999

    Posted May 18, 2010 2:10 am PT

    @wizo59mt
    I agree that a New Phantasy star online is needed.

    Also, they could easily Re release this game on PS3 Network or Xbox Live with some revamped HD graphics. Make the game Free For Down Load. Put Advertisements in the Lobbies and Make Money off Downloadable Rares and Outfits. This game is perfect for Live Or Home.

  • holenjd

    Posted May 17, 2010 12:42 pm PT

    Loved Beyonetta, hated AVP(such a let down).

  • wizo59mt

    Posted May 17, 2010 9:39 am PT

    personally they need to make a new phantasy star online for consoles thats is more to the roots of the original version on dreamcast, and also remember i seen something about splatter house in the works. hope it wasnt cancelled. plus if they actully made a decent rehash of a old sega classic franchise they might see there profits increase. they always remake old franchises and ruin them. like golden axe, altered beast, which never made it over here. shining force, used to be a turn based stratagy rpg turned into a a hack and slasher with little excitement. where is shinobi? pull you head out of your arses sega and do something smart other than bayonetta.

  • Dualmask

    Posted May 17, 2010 5:56 am PT

    @Transparanoia As a matter of fact they have. You can install data on the hard drive now, which minimizes load times to a much more manageable level.

    I'm real glad Bayonetta is getting the success such a well-designed action game deserves. There is literally nothing wrong with that game, not even the PS3 version (anymore).

  • Mordraneth

    Posted May 17, 2010 2:57 am PT

    I personally detest Sega since they showed a complete lack of customer and fan support/loyalty by ditching every console they made since the Genesis. At least they went back to doing what they did best; making games.

    That said, I love AvP. Not as good as the original and well below AvP2 imo but still good none-the-less.

  • Gen007

    Posted May 16, 2010 11:16 pm PT

    Mario and Sonic top 6 mil. Man i think i threw in my mouth a little. Its to be expected though i guess. I just wish the world could work in reverse sometimes. You know talent and skill being rewarded over effortless cash grabs.

  • Denveraic

    Posted May 16, 2010 10:22 pm PT

    the_requiem Stupid huh. A lot of people don't appreciate Bayonetta. I loved it.

  • Transparanoia

    Posted May 16, 2010 9:40 pm PT

    Does anyone know if they fixed up all the crappiness that was the Bayonetta PS3 port via patches? I'll definitely pick it up if they have.

  • AlmaDanny

    Posted May 16, 2010 9:05 pm PT

    Shame coz Bayonetta is one of the best beat them up action games released in years.

  • the_requiem

    Posted May 16, 2010 8:47 pm PT

    AvP sold more than Bayonetta??!!?!!!111

  • Slagar

    Posted May 16, 2010 7:31 pm PT

    For me, Sega needs concentrate on marketing and quality. The big developers make names for themselves simply because they don't release garbage, and they market their products properly. Bayonetta was a good product, but still lacking in story etc. Things like that seperate a B+ game from a AAA. I want to see Sega flourish, but I'm not sure I have faith in the upper management to make it happen.

  • nate1222

    Posted May 16, 2010 5:24 pm PT

    I WANT SHENMUE 3 FOR Wii!
    Seriously, though, I'm happy for Sega. I've been a fan of their stuff since the Genisis days. I'd like to see some Dreamcast stuff as downloadables for PC. Eventually, everything's gonna go downloadable anyway. Release it through GOG and watch the money roll in.

  • dstv

    Posted May 16, 2010 4:56 pm PT

    hope this means they will try to make a sonic game better than 2 battle

  • goyo_nemesis_89

    Posted May 16, 2010 4:31 pm PT

    BAYONETTA vs DEVIL MAY CRY

  • andrew_dueck

    Posted May 16, 2010 3:21 pm PT

    See, when Sega makes more than just crappy 3D Sonic stuff, they make money.

  • twistedmalice

    Posted May 16, 2010 1:17 pm PT

    Go Seaga.

  • tommy_boy9999

    Posted May 16, 2010 12:25 pm PT

    Good news for Sega. There is no reason why Saturn and Dreamcast Games are not on PS3 Network and Xbox Live for download. Shemue 3 is way overdue. Perhaps Skies of Arcadia 2

  • Dorgoth12

    Posted May 16, 2010 12:25 pm PT

    i really hope this doesn't spur them onto making more AVP games, it was pretty damn shocking

  • madsnakehhh

    Posted May 16, 2010 12:12 pm PT

    I'm so happy for Bayonetta, is one of the best games this year and is IMO the best action game ever, i can't wait for a sequel, spinoff, prequel or whatever, just give more of that sexy witch.

  • Denveraic

    Posted May 16, 2010 11:39 am PT

    I'm sorry, but Bayonetta was awesome. Freaking amazing. Sega still puts out great games, just not enough of them. Good to see Sega do a little better. I really wish they would be one of the premier game makers again. It seems like the company has gotten lazy, and really don't care what they put out. The need some need blood up top. Some driven talented leadership.

  • NINJETXZERO1

    Posted May 16, 2010 10:32 am PT

    NOW GIVE ME SOME SHENMUE 3!

  • BatrozX

    Posted May 16, 2010 10:12 am PT

    IMO I enjoyed Bayonetta far more than the Devil May Cry series (DMC2 and up). In Bayonetta I didn't have to worry about doing different attacks every time in order to get an S rank, instead I had to worry on beating the enemies as fast as possible and get less damage, just like in the first DMC, which IMO was the best DMC game ever.

    Anyway, good for you Sega, now...buy Platinum Games, do a deal with some third party publisher or something, and make a Dreamcast 2. God knows you only made purely awesome games when you were in the console market, and I still think the Dreamcast is the best console I've seen and used in my life. Also, gimme a Jet Set Radio sequel (or remake), give Shenmue fans Shenmue 3, and bring back those old IPs that we know would do great if you guys made a new game about them.

  • Stryder_18

    Posted May 16, 2010 8:23 am PT

    Imagine how much money Bega is gonna be making when they release the Sonic 4 episodes. I still need to buy Bayonatta and I think getting the platnium version will do quite nicely.

  • jtthegame316

    Posted May 16, 2010 8:14 am PT

    bayonetta and sega and sonic all star racing are awesome but i wish they would finish the story and do shenmue 3

  • Xtatic324

    Posted May 16, 2010 7:05 am PT

    BAYONETTA FTW!

  • KCKING23

    Posted May 16, 2010 1:05 am PT

    how about shenmue 3?

  • ethanpaige

    Posted May 15, 2010 9:09 pm PT

    Bayonetta was great, I'd love to see them continue with that franchise

  • misterstatus

    Posted May 15, 2010 9:09 pm PT

    Figures, the mediocre kiddie game on the Wii (Mario and Sonic at the Olympics) sells the most copies.

    I'll take Yakuza 4, please!

  • SDBusDriver1979

    Posted May 15, 2010 7:24 pm PT

    How about a new Berserk game Sammy?

  • Realacide

    Posted May 15, 2010 6:26 pm PT

    Wow good job Sega with those awesome games!

  • ScionofEntropy

    Posted May 15, 2010 5:39 pm PT

    @maverick_76: It's hard to blame them, considering they know Sonic games will sell like crazy. I do agree with your point, though. More new IPs would be nice.

  • digi-demon

    Posted May 15, 2010 5:03 pm PT

    Come on, how about a Powerdrift remake - similar to OutRun2 in proper polygonal 3D. Online 16 x multiplayer would be awesome....

  • maverick_76

    Posted May 15, 2010 4:48 pm PT

    Well Sega, quit making Sonic games and focus on something new!!!

  • WannabeSeras

    Posted May 15, 2010 3:55 pm PT

    How could you hate Bayonetta? It's lovely. ;D

  • storm_trooper10

    Posted May 15, 2010 3:29 pm PT

    please let Dante be in the next game. I mean, he was in SMT: Luficer Calls.

  • Vambran

    Posted May 15, 2010 2:47 pm PT

    This game was so over the top. I loved it.

  • killer690

    Posted May 15, 2010 1:15 pm PT

    - Bayonetta vs devil may cry huh? For me bayonetta wins.... but just because she's hot -

  • alixkid posted May 15, 2010 12:17 pm PT (does not meet display criteria. sign in to show)

    alixkid

    Posted May 15, 2010 12:17 pm PT (hide)

    Bayonetta rocks on 360

  • alixkid posted May 15, 2010 12:15 pm PT (does not meet display criteria. sign in to show)

    alixkid

    Posted May 15, 2010 12:15 pm PT (hide)

    Too Bad porting games over to the PS3 is so Crappy thats why most are better on 360 (blue ray tech is still not close to dvd tech)

  • undergroundfrog

    Posted May 15, 2010 12:09 pm PT

  • IWKYB posted May 15, 2010 11:47 am PT (does not meet display criteria. sign in to show)

    IWKYB

    Posted May 15, 2010 11:47 am PT (hide)

    wonzan : the ps3 can't keep up with "fast" games/has a hard to work with engine. BUT IT HAS BIGGER SPACE!!!

  • Jag-T1000

    Posted May 15, 2010 9:13 am PT

    @Wonzan If you had both systems (like me), you can pick the the best one. I bought the 360 version. Bring on Bayonetta 2!

  • wonzan

    Posted May 15, 2010 8:43 am PT

    If the PS3 port of Bayonetta wasn't so horrendous I would have bought a copy and upped your profit margins Sega. ¬___¬. I know MANY others that would have bought the game if you did a half decent port. Bayonetta could have reeled you guys in a lot more cash.

  • johny300

    Posted May 15, 2010 7:50 am PT

    and how did alien vs predator sell 1.69 million thats a joke right! lol

  • johny300

    Posted May 15, 2010 7:49 am PT

    bayonetta vs devil may cry = devil may cry win.

  • coaltango

    Posted May 15, 2010 6:55 am PT

    AVP is a load of crap just good graphics

  • kavadias1981

    Posted May 15, 2010 6:53 am PT

    I absolutely loved the Bayonetta demo for PS3 but once I read how the full version was a far inferior version to the 360's, I boycotted it. If you don't put the effort in, then you don't get my money, simple as that.

  • kavadias1981

    Posted May 15, 2010 6:51 am PT

    @TheRaiderNation

    Go and buy Yakuza 3. There is still a part of Sega that remembers how to make amazing games.

  • TheRaiderNation

    Posted May 15, 2010 6:34 am PT

    Congrats, Bayonetta deserves the success it has received! But aliens v.s. predator? And lets not forget Iron man 2 = joke. I'd really love sega to turn their franchise around, an excellent sonic game would be a great start.

  • freema posted May 15, 2010 6:20 am PT (does not meet display criteria. sign in to show)

    freema

    Posted May 15, 2010 6:20 am PT (hide)

    Can't believe that so many people bought Bayonetta. It has ZERO re-playability and you can beat it in one day for Christ's sake. I rented it, played it for a weekend and honestly was already getting bored of it even before I had to return it. It really buffles me that some people care so little for their hard-earned cash. Some games are just ideal for rentals.

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