Sega Sammy has disclosed its Q3 2025/26 financial results, revealing a complex financial landscape with notable losses in various operational segments. The most significant financial blow stems from its 2023 acquisition of Rovio, the creator of the popular "Angry Birds" franchise. Sega acknowledged that Rovio's performance has fallen considerably short of initial projections, citing rapid shifts in the market and other contributing factors.
The company has recorded an impairment loss totaling ¥30.4 billion (approximately $198.6 million). This downturn is largely due to escalating market competition and a swift decrease in the active user base for Rovio's offerings. Consequently, Rovio struggled to execute its original business development strategies. Furthermore, several game titles, including the mobile game "Sonic Rumble" co-developed by Rovio, did not achieve Sega's internal benchmarks, particularly in user acquisition. Beyond Rovio, Sega's overall financial health shows mixed results; while net sales have seen a modest 4% year-over-year increase, both operating income and ordinary income have declined by 54.6% and 51.8% respectively, with the entertainment content division experiencing a 31% drop. Despite these challenges, Sega's plans include launching four major new titles from its core intellectual properties in the upcoming fiscal year and expanding its trans-media ventures into films, television, and merchandise. Daniel Svärd, formerly a lead at King's live game studios, has been appointed as Rovio's new Chief Operating Officer to navigate these turbulent times.
In light of these financial hurdles, Sega has adjusted its net sales forecast slightly upwards to ¥490 billion ($3.2 billion) from an earlier ¥475 billion ($3.1 billion) but has lowered its operating income expectations to ¥40 billion ($261.5 million) from ¥53 billion ($346.6 million). The recent launch of "Yakuza Kiwami 3 & Dark Ties" will be included in the fiscal year's final report, potentially offering some positive impact. With the 35th anniversary of the Sonic series approaching in 2026, there is an optimistic outlook for future success and revitalization within the company.
This period of financial readjustment offers an opportunity for reflection and strategic realignment within Sega. By learning from the challenges faced with Rovio and underperforming titles, the company can refine its acquisition strategies, enhance game development processes, and strengthen its market position. Focusing on innovation, expanding beloved franchises, and fostering strong leadership, Sega is poised to overcome current obstacles and achieve renewed success, demonstrating resilience and forward-thinking in the dynamic entertainment industry.
