Sega Sammy Q1 sales fall 22.7% as gaming unit revenue doubles
Sega Sammy Holdings posted a net loss of ¥3.39bn (US$23.7m) for Q1 2025, reversing a ¥9.26bn profit a year earlier.
Key points:
– Net sales fell 22.7% year-on-year to ¥64.1bn
– Gaming Business revenue rose 99.7% following Stakelogic and GAN acquisitions
– Pachislot & Pachinko Machines sales dropped 61.8% to ¥7.6bn
Sega Sammy Holdings reported a net loss of ¥3.39bn (US$23.7m) for the first quarter of 2025, compared with a ¥9.26bn profit in the same period last year – a 136% year-on-year earnings swing.
The decline was driven by lower sales in its Entertainment Contents and Pachislot & Pachinko Machines divisions, which outweighed gains from its Gaming Business segment.
Net sales fell 22.7% to ¥64.1bn. Operating results also turned negative, with an operating loss of ¥2.4bn versus a ¥6.1bn profit a year earlier.
The Entertainment Contents segment, covering video games, amusement machines and related IP, generated ¥47.5bn in sales, down 6.7%. The company cited fewer major new releases compared with Q1 2024, when titles such as Smart Pachislot Hokuto no Ken boosted results. Segment operating margin fell to 3.6% from 13.1%.
Sales in Pachislot & Pachinko Machines declined sharply by 61.8% to ¥7.6bn, with volumes concentrated in a limited number of titles. Sega Sammy said it has secured regulatory approval for its Smart Pachislot Tokyo Revengers model, which it expects to attract younger players and revitalise demand.
Good to know: Sega Sammy completed its $147.3m acquisition of Stakelogic in July 2024
The Gaming Business segment, which includes overseas casino operations and iGaming, reported ¥8.2bn in sales, a 99.7% increase. The rise was primarily due to the consolidation of Stakelogic and GAN, as well as stronger performance in North America.
Sega Sammy has maintained its full-year forecast of ¥475bn in net sales and ¥37.5bn in net profit, citing an expected improvement in title cadence and cost management over the coming quarters.
The company’s Q1 2024 results showed a 5.8% rise in net sales to ¥82.9bn, supported by stronger Entertainment Contents and the early ramp-up of Chamonix Casino Hotel in Colorado. The contrast with Q1 2025 reflects the softer release schedule and weaker pachislot demand this year.
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