Sega reports lower game division profit, cancels its long-running Super Game project

Sega Sammy’s latest financial results show a mixed year for the company’s games business. For the fiscal year ended March 31, 2026, net sales rose 13.6% to ¥487.5 billion, but profit in its entertainment contents segment, which includes video games, fell from ¥40.8 billion to ¥32.4 billion.

A big reason was Rovio. Sega said the year was hit by a roughly $200 million impairment loss tied to the Angry Birds maker, along with another impairment loss related to Stakelogic. That pushed Sega Sammy to an overall net loss of ¥5.7 billion for the year.

On the games side, full game sales dropped 12% to ¥67.2 billion, even with releases like Sonic Racing: CrossWorlds and Football Manager 26. Sega said some titles underperformed, older games brought in less, and new Rovio launches were delayed. Free-to-play revenue was up 14% to ¥53.7 billion, helped by releases including Persona 5: The Phantom X and Sonic Rumble Party, though Sega also said Sonic Rumble Party itself underperformed.

One of the bigger takeaways is that Sega has canceled its “Super Game” project, the online AAA title it first talked about back in 2021. According to Sega’s results, there were no extra costs tied to the cancellation. The company had previously pitched Super Game as a large-scale global project, with reports at the time suggesting Sega could spend close to $1 billion on it.

Sega is also shifting people around internally. More than 100 developers working in free-to-play have been reassigned to full game development, with the company putting more focus on its established series. Rovio is still part of Sega’s games-as-a-service plans, but Sega said the studio will prioritize its own restructuring first.

For the next fiscal year, Sega expects sales to rise 4.6% to ¥510 billion, while operating income is forecast to dip 5.6% to ¥44.5 billion.