Sega is set to dial down the number of digital games it develops after seeing lower-than-expected results from that particular area of business last year. Instead, its focus will shift towards its existing IPs.
Sega Sammy Holdings, Sega's parent company, has said that its digital games segment fell "significantly below the initial plan" in its recent annual financial briefing. GamesIndustry.Biz reports that Sega has attributed this to both external factors - including intensified competition in the domestic market - and internal factors such as a lack of hits and various delays which saw four of the 12 digital games planned for the period be pushed back.
Despite achieving a 5.9% increase in digital sales for the year ending 31st March 2019, grossing $366.5 million in total, Sega reported a $17 million loss from digital games over that period. Physical games "exceeded the initial plan" in the same time frame, however; despite physical revenue falling by 4.2% to $490.4 million, Sega saw a 26.1% increase in operating income.
In a bid to capitalise on this development, Sega has revealed that it will start to develop fewer titles and place more emphasis on games which are based on existing IPs. GamesIndustry.Biz also notes that Sega has identified an "increase to global expansion, strong performance of both domestic and overseas properties, and an improvement in product quality" as the reasons for its physical sales success, all of which will likely play key parts in its strategy going forward.
It looks like we might be seeing plenty more of Sonic and co. in the near future, then. Just as long as it's not a video game of the movie which is kind of based on the video games, we're up for seeing what's next.