Sega has released its Q3 FY26 financial results, confirming recent and older game releases in many categories performed below expectations, and that it will take an impairment loss of approximately ¥31.3 billion (AU$290 million) due to a ‘declining trend’ at subsidiary Rovio.
Sega financial results Q3 FY26 – quick links
Game titles underperform for Sega
The Rovio studio was noted as underperforming overall, with the financial report pointing to ‘rapid deterioration of the User Acquisition environment’, as well as ‘rapid changes’ in the market environment beyond the company’s control.
Various ‘new titles and repeat sales’ titles under the Sega banner have also reportedly underperformed.
New mobile title Sonic Rumble, developed alongside Rovio, was specifically called out as failing to meet various KPIs, including customer acquisition, although Sega isn’t done with the game yet. The company has confirmed plans to ‘strengthen operations through updates and other measures’.
It will do the same for Football Manager 26, which will continue to receive updates to address various post-launch bugs and improve gameplay.
Sega is also planning for a bigger financial year ahead, confirming that while this quarter brought downturn in its entertainment and gaming business, FY27 will feature new, major releases backed by high hopes, along with new ‘transmedia expansion’ projects featuring ‘accelerated synergies with games and merchandising initiatives’ and ‘marketing strategy updates’.
As part of these changes, Sega has also confirmed it will attempt to optimise fixed expenses by ‘using AI in development‘ to help improve efficiency in development studios.
Four major new titles coming in FY27
In its financial report, Sega also announced next steps for the business, with various initiatives planned to address the challenges outlined.
Under its entertainment content business, Sega plans to release ‘four major new titles for mainstay IPs’ with enhanced focus on ‘sales capabilities’ to foster sales success.
For now, the company has not announced the nature of these titles, but we can make some assumptions, given they relate to Sega’s ‘mainstay’ franchises.
The company has already confirmed new titles are in the works for the Crazy Taxi, Golden Axe, Jet Set Radio and Streets of Rage franchises. It has also confirmed that a sequel to Alien: Isolation remains in development.
Other games that have been announced but are yet to receive formal release dates include Persona 4 Revival, Stranger Than Heaven, Total War: Warhammer 40,000, Total War: Medievil III and the next Virtua Fighter game.
Any of these titles could be the backbone of Sega’s FY27 release plans as it aims to improve its sales outcomes. We’ll have to wait to see what the company has in store as it heads into the new year.
Also on ScreenHub: Control Resonant doesn’t use GenAI, but Remedy’s stance may change in future
Remedy Entertainment’s interim CEO Markus Mäki has confirmed the studio’s upcoming adventure game Control Resonant does not use generative AI, with the game instead being built by human creativity and ideas.
The detail was shared during a recent company earnings call (via Game Developer), where Mäki described the importance of player value, and ‘doing things that really add something to the gameplay experience and the player experience’. It’s typically in these presentations that questions around GenAI arise, as company investors tend to be bullish about new technology implementation, particularly when it pertains to perceived efficiencies or cost-savings.
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