Sega Sammy reports profit drop, writes down Rovio by nearly $200 million

Sega Sammy’s latest financial report (covering the nine months ending December 31, 2025) shows profits sliding hard, even as overall sales ticked up. The company says several new releases did not hit their sales targets, and it also took a major write-down on Angry Birds maker Rovio.

Sega previously bought Rovio in 2023 for $776 million, and has now recorded an impairment loss of about $198.6 million after concluding Rovio’s value has fallen well below what Sega was carrying on its books.

For the nine-month period, Sega Sammy reported net sales of ¥335.2 billion (up 4% year-on-year), but operating income dropped 54.6% to ¥19.8 billion. Ordinary income also fell 51.8% to ¥23.8 billion.

In its Entertainment Contents business, Sega said new full games and free-to-play launches underperformed, while older free-to-play titles held steady. It also pointed to stronger-than-expected results from licensing, subscriptions, DLC, and animation.

Sega specifically called out Sonic Rumble as missing expectations in Q3, particularly around customer acquisition. Rovio’s Q3 was described as “sluggish” and significantly below forecast, with Sega citing a fast-changing mobile market, heavier competition, and the impact of major new titles.

Going forward, Sega says it’s putting more focus on “mainstay IPs” and its transmedia plans, and it’s also making management changes at Rovio. Daniel Svärd, formerly head of live game studios at King, has been appointed COO at Rovio.

Sega also updated its full-year forecast compared to what it shared on May 12, 2025: net sales are now expected to be ¥490 billion (up from ¥475 billion), while operating income is expected to land at ¥40 billion (down from ¥53 billion).