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Sega's gaming biz loses $77 million

Parent company Sega Sammy's sales, profits tumble as games biz misses all expectations; Captain America sells 450,000 as Rise of Nightmares scares up 200,000 sold.

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Not even Captain America could save Sega's bottom line. Parent company Sega Sammy today reported slumping sales and profits in its financial results for the first half of the fiscal year, with the game division falling notably short of expectations.

Captain America sold 450,000 copies in a little over two months on shelves.
Captain America sold 450,000 copies in a little over two months on shelves.

From April through September, Sega Sammy posted total sales of ¥152.6 billion ($2 billion), down nearly 30 percent year-over-year. Net profits were also down sharply for the publisher, off 84 percent from the previous year's first half to finish at ¥3.9billion ($50 million).

Stripping away Sega Sammy's pachinko and arcade machines and entertainment centers, the consumer business division that includes Sega's PC and console operations was also down. First-half sales sank nearly 14 percent to ¥33.4 billion ($428 million), while the segment posted an operating loss of ¥6 billion ($77 million).

The multiplatform movie tie-in Captain America: Super Soldier was the company's best-selling new release for the July-September quarter, racking up 450,000 copies sold in Europe and the US. The Xbox 360 Kinect-exclusive Rise of Nightmares was the company's next-biggest international new release, selling 200,000 copies worldwide. The Japan-exclusive PSP management sim J-League Pro Soccer Club Tsukurou 7 rounded out the company's major releases, also moving 200,000 copies.

On a larger scale, the publisher missed its sales forecasts on every platform. Game sales for the Nintendo 3DS were particularly disappointing, as the publisher had told investors to expect nine Sega games to combine for sales of half a million copies by the end of September. In that time frame, the publisher actually shipped just two games for the system, with combined sales of 30,000 copies.

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CptRexKramer

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I can't even think of the last SEGA game I bought. Come to think of it, when's the last time SEGA made a good game?

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krelmmaster

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This is what happens when you release crap games. True story.

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wexorian

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in old times everyone enjoyed with milked sonic but now every new game is worse than old one come on sega :D

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leeko_link

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@ Philly1UPer They already had a good Out of This World sequel. It's called Heart of the Alien: Out of this World Parts I and II for Sega CD, though they are not the publisher of the game, they could request Interplay to port the game for WiiWare, PSN and/or XBLA.

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leeko_link

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@ GamerYnoX You do know Sega invest in a lot of money to make Shenmue 1 & 2 and got very little back in return. As much as I would love to play a new one, I think Sega handles their financial situation first, maybe make more good Sonic games, new games to fan favorite like Virtua Fighter, Vectorman, Streets of Rage, and Shinobi. I see they already got Shinobi and Virtua Fighter cover, all they need is a new Vectorman and Streets of Rage comeback.

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Philly1UPer

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They have to stop making crap and go back to what made them once great. Jet Set Radio Streets of Rage Toe Jam and Earl Altered Beast Golden Axe Ecco a true next gen Nights SHENMUE Shining Force I could go on and on. They could even do a good Out of this World sequel if they wanted to get the rights for it.

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godzillavskong

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@shabulia Now a new Shining Force installment would be awesome, heck, even a HD remake would be great! Who knows, with all these HD remakes out there, it may just happen. Then we need Rare to give us a HD Killer Instinct.

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GamerYnoX

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There are risks when making games but sometimes there are big rewards... Cmon, who wouldn't like to play a proper new Shenmue game?

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shabulia

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Sega Sammy is not Sega. It just isn't the same company anymore. They keep pushing 3 or 4 different Sonic games that are all crap-mediocre in quality and they ignore what the fans want from them. How about ONE GOOD Sonic game every once in a while and maybe some games that are from franchises that we all know and love; Virtua Fighter, House of the Dead, Shining Force, Phantasy Star, Panzer Dragoon, Jet Set Radio... Remember when Sega delivered on quality and innovation? That's what will bring in big sales. Releasing nothng but crap and they are surprised by low profit margins and slumping sales? Come on, Sega! Get it together or go away!

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BlackBaldwin

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I want a new Shining Force and phantasy star game cus gods everyone knows that rpg games are not being made anymore soo bring them back and make them good and make a ton of cash its a no brainer!

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godzillavskong

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Release the HD Dreamcast and watch the $$$ rain in! I wish Sega wouldn't have exited the hardware market and I know they aren't even remotely thinking of jumping back in, but they would get my hard earned cash if they did! :)

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dxdevilex0

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If CP:SS was the best selling game their,I wouldn't be surprised that their profits decreased.

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Llama345

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I'm sure they will be fine, but a movie game is where all you hopes and dreams lie? rough stuff. tons of people have already listed numerous game that they could relaunch/make sequels to help them out. I for one would be all about new jet set radio and streets of rage.

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randomtext

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Well maybe sega will learn it's not just about putting out games it's about putting out GOOD games. There are a lot of companies making the same mistakes though.

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nini200

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and definitely Streets of Rage/Bare Knuckle 4.

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nini200

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Eternal Champions: The Final Chapter Shenmue 3 Jet Set Radio WiiU Panzer Dragoon Orta 2 (with motion controls) Space Harrier Golden Axe 4 Altered Beast 2 Vectorman 3 Chaotix 2 Tempo 2 Chu Chu Rocket 2 Space Channel 5 1/2 (For Kinect) Fighting Vipers 3 Just a list of games that could boost Sega right back to their spot.

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TK-48

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What happened to you Sega? You've been reduced to putting your hopes on a movie- tie in game?!

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dxBIGBOSSxb

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Sega, this is what you get for THINKING you made a good game, TELLING people you made a good game, and only making total schlock. Rushing a game out as quickly as possible is NOT what a good business makes.

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RitsukoEX

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Sega SUX! END OF STORY!!!...yea! it needed be said in caps!

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ToTs_00

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Well you can expect things like this when your resent games have been mediocre to total crap.

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spotlifetv

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Sega is loosing money because it is no longer innovative and Fan Friendly. They sit back and release games that are mediocre sellers and have yet to break thru and release the games fans want. Where is a Modern Day Altered Beast, Streets Of Rage, Jet Set Radio, Shenmue or Panzer Dragoon Saga? Heck why not make most of those games available on the PSN store or Xbox Live. How about making Seaman with Kinect??? They days where you were so innovative and daring with games have long passed.

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Ultramarinus

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No Valkyria Chronicles 3 localization and more Sonic milking. Can't really say good business management at all.

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Kiriyama_X

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Seriously, if you guys released HD versions of Phantasy Star Online and Jet Set Radio i'd be all over it like a bun on a bologna sandwich.

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gowofwarKratos

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Come on Sega, bring us new games plus classics like Panzer Dragon. Like an old fan, wish you the best.

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Jag-T1000

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If you make a new Space Harrier, I will buy it.

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bongsyas_23

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come on Sega, bring back virtua fighter, virtual on, virtua racing, virtua cop, and of course sonic. what happened to ya'll?

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AuronAXE

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Sega needs to market the new Sonic WELL (marketing is something they fail at), they need to bring something back like Streets Of Rage or Golden Axe and then pull out the big gun: Shenmue. And honestly, after that, if I was given the final decision of the board of directors of Sega I'd close up shop. Why deteriorate so much over time when you could stop at the peak of a profitable period and go down in history as a game company that DIDN'T fail due to crappy games that sold bad? Better that then slowly end up like Capcom, who is also going down the drain. That being said, with a revenue of $5.2 billion USD and tons of game development locations, that would mean a lot of lost jobs. So...I don't know. Just throwing out suggestions to the world.

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NightFox313

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Come on, SEGA, what happened? Get that hedgehog back in gear!

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ARAM_28

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what can u expected? They want to make money from such some games?

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MJ12-Conspiracy

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Last time I bought a Sega game was the first Yakuza, You could almost forget the game was made by Sega, it's one of the best games I played last generation though sadly I didn't get a chance to play Yakuza 2, I still want to check out Yakuza 3 & 4.

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LAnoirFAN

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sega if you want money earn it!!

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gino_pachino

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dreamcast 2 on the next console gen(dreamcast was the most "underhyped" console ever made it was a great piece of hardware for the time)........they have to do a "do or die move" just like what apple have did whit the ipod......this....or "the safe move" sell the company to a big in the market before it die..I think the best candidate it nintendo...mario+sonic sound good...an old school alliance :)

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Everiez

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Why bash Sega? This is expected. No major release on Sega's first half of fiscal year. Their last year fiscal was great and one of the best. They had double profits despite of weak game sales because of the great games they published and developed.

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blutundkrieg666

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if rise of nightmares was multiplatform they would have gained a few extra sales. i would have got a copy for my ps3, whether psmove could do it justice is another story. i have respect for sega for the total war series which imo destroys all other rts games. apart from that though............

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littlestreakier

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I kind of hope that Sammy sells Sega and Warner Bros. picks them up. Right now Sammy controls what Sega can and cannot do, i can only image the possibilities that Sega could have if Warner Bros. gave Sega the creative freedom like they have with Midway.

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XAF1

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I've been a Sega fan since the Master System but the truth is, the Sega we see today is a great deal weaker than the Sega of the past when it comes to game development. I'm actually worried about it as a company. It has so many great franchises of the past that it has just let die or that we never hear about console wise. Shinobi, Alex Kid, A Virua Fighter that isn't just an update to an older game that some of us already own. It's fine to be a publisher/developer but don't forget your heritage/pedigree as one of the top developers. I haven't played a Sega game in years that I just couldn't wait to get my hands on. I own every Sega console/handheld that I can think of but I think currently Sega's on a downhill slant as a developer and that frightens me. I hope that it can clean things up.

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camverge

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@ tommy_boy9999 of course you're going to hear a lot of hate for Sega, because they're better known for failing. Yes, they do have the ability to make good games as I am a huge fan of Vanquish, but when you only have a couple great games buried beneath just terrible games it really tarnishes your reputation. It really hurts your image when you have all these rabid comic book fans who lose out on an opportunity to play a good Thor, Captain America, and Iron Man game. Characters that probably wouldn't of got their own game had it not been for the movies. Now with the bad sales due to Sega's lackluster attempts at putting out a valuable product with ever release, they might never get that opportunity again.

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ZeroX91

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Why do people act like these losses are unexpected its not like the world economy has gotten any better in the past ten years, if sega was smart they would adapt to the new economy.

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Haasdude

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Make a proper Golden Axe game and all your problems will be over, Sega.

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deactivated-64efdf49333c4

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I'm surprised Sega is still in business. Even when they do release great games, as tommy_boy9999 mentioned, they do a terrible job marketing them. It's been like this since the Saturn.

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tommy_boy9999

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BLah blah blah thats all I hear from people that hate Sega. Been hearing it for 20 years now. When Sega Releases good Games like Madworld, Bayonetta, or ALiens for the DS, Vanquish, Sonic Chronicles, Phantasy star Zero, Infinite space, the Conduit, Yakuza and on and on -- no one buys them. IF Sega Made Shenmue III and it was a 10 out of 10 no one complaining here would buy it . I would buy it in a heart beat but I have to go play Guardian Heroes which was just realeased from Sega

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Master_Turismo

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Sega will get out of this rut like it usually does. Would be cool of them to make Shenmue 3 and Sega GT 3.

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The_Shadow_Link

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Rise of Nightmares needs more love. It's one of the most unique Kinect Games out there. Much more unique than Dance Game number 29...

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BH14

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Stop fooling around, Sega. It is time for a new Streets of Rage game.

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TheCyborgNinja

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I think Sega has shot themselves in the foot far too often, by releasing games with a big name brand and poor quality. The only way Captain America could have been a hit is if it wasn't a movie game. Make a great game based on the comics so people won't turn their noses up to it.

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Link3301

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I hope Sonic Generations does good. The recent Sonic games haven't. They only good ones in recent years were the Sonic rush games. Sonic Colors was okay, but it could've been better. Every Sonic game has some stupid gimmic to it. However, Sonic generations is pretty much the same gameplay as the day stages in Sonic Unleashed, which were awesome.

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TimboII

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Not suprisingly...I can`t believe they were seriously banking on Captain America turning around their losses. I can`t believe how Sega seems to have no sweet clue what gamers want even though they are obviously outright asking for classic revivals...last time I bought something with Sega`s name even attached to it I think it was Condemned...

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OJ_the_LION

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I suppose this is the be expected. I don't recall anything really exciting that Sega came out with in this period. Licensed games are terrible as always, but must be profitable if they keep making them. For such a large and storied company though, they can't be that dependant on them.

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x400Degreez

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Shenmue 3, Sonic Adventure 3, and Jet Set Radio 3 make it happen Sega.

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