SEGA Sammy has reported modest revenue growth but a sharp decline in profitability for its Entertainment Contents Business in Q3 FY2026, covering the nine months ended December 31, 2025. While net sales rose 1.5 percent year over year to ¥242.2 billion, operating income fell 31.5 percent to ¥23.7 billion. Adjusted EBITDA dropped significantly to ¥2.0 billion from ¥40.5 billion in the prior year, largely due to a ¥31.3 billion goodwill and intangible asset impairment related to Rovio.
Within the Consumer area, full game sales declined to ¥52.5 billion from ¥59.2 billion year over year. Unit sales fell from approximately 24.8 million to 19.5 million units, with both new and repeat title sales underperforming internal plans. The company has revised its full-year Consumer area sales forecast downward to ¥224.0 billion from an initial ¥230.0 billion projection.
Performance varied by franchise. Sonic Rumble, launched November 5, 2025, was directly identified as underperforming, with management stating that various key performance indicators, particularly customer acquisition, fell short of expectations. Sonic Racing CrossWorlds, released September 25, 2025, was included within the broader full game shortfall, though no specific figures were disclosed. Licensing revenue tied to the Sonic IP reached ¥12.2 billion through Q3, supported by 714 licensees, exceeding the prior fiscal year total.
Persona also experienced mixed results. Persona5 The Phantom X, launched globally in June 2025, was cited as underperforming among new free-to-play titles. Persona 3 Reload launched on Nintendo Switch 2 on October 23, 2025, contributing to repeat sales, though catalog revenue declined overall year over year. Persona 4 Revival remains in development for multiple platforms, with no release date announced.
The Like a Dragon franchise provided relative stability. Yakuza Kiwami and Yakuza Kiwami 2 launched on Nintendo Switch 2 in November 2025, while Yakuza Kiwami 3 and Dark Ties released February 12, 2026. Management described the latest release as having a good start, contributing to anticipated Q4 momentum.
SEGA Sammy acknowledged structural challenges, including stagnant growth in major full game titles, quality issues, rising customer acquisition costs, and limitations in digital sales infrastructure. The company indicated plans to shift toward a more data-driven consumer model with improved global rollout capabilities.
While the underlying casino gaming business performed strongly, losses related to recent acquisitions weighed on that segment. Overall, the company’s near-term outlook depends heavily on execution improvements and the performance of upcoming major titles in the next fiscal year.
