Sega’s Game Division Cushions FY2025 Losses With Back Catalog Boost and Sonic Franchise Strength

Sega’s fiscal year 2025 game profits climbed on strong back catalog sales and Sonic franchise success despite fewer new releases and canceled titles, according to the company’s fiscal year 2025 results presentation that was published on May 13, 2025.

For the fiscal year ending March 31, 2025, Sega Sammy reported overall sales and income were down, but its entertainment contents business, which includes the video game division, saw a significant rise in ordinary income, up from approximately $207 million to a sum of about $281 million.

That boost came despite an 8.5% drop in total net sales and a 16.8% decline in operating income. The line was held by strong repeat sales from Sega’s back catalog, ongoing DLC revenue and the enduring strength of the Sonic brand, notably not just in games but at the box office as well, with the Sonic the Hedgehog 3 movie reaching $490 million at the global box office.

The company released just six new console titles in FY2025, less than half the number from the previous year. However, sales of past titles from Sega’s catalog saw a rise from 18.66 million to 24.87 million units, showing a 29.6% bump compared to the last year. Among the standout performers were Sonic X Shadow Generations, Metaphor: ReFantazio and Like a Dragon: Pirate Yakuza in Hawaii.

It is worth noting that in FY2025, Sega canceled Football Manager 25, which led to the company’s free-to-play business declining by 12.6%. Looking ahead, Sega is about to release Sonic Racing: CrossWorlds, Yakuza 0 Director’s Cut and some new free-to-play titles, including Sonic Rumble and Persona 5: The Phantom X.

Sega also reaffirmed its commitment to the Football Manager and Total War series, promising further development and a 2026 return for Football Manager. An Alien: Isolation sequel is in the works, and Sega is actively investing in a “revival of legacy IP,” including Crazy Taxi, Golden Axe and Jet Set Radio.

For the 12 months ending on March 31, 2025, Sega’s net sales totaled approximately $2.89 billion, representing a decrease of 8.5% compared to the previous year. Operating income was about $323 million, down 16.8% year-on-year. Ordinary income amounted to approximately $357 million, reflecting a decline of 11.1% from the prior year.