Sega Set to Feed Off Exceptional Financial Results With Multi-Billion Dollar Investments

Sega is all set to invest up to $1 billion in video game development. On 7th Nov 2021, the company shared its financial report in which the numbers were very promising. A few days back, the company also announced its strategic alliance with Microsoft to work on cloud-gaming development. They called this project the “Super Game.” In this financial report, the company achieved a convincing performance in:

• Entertainment content business (video games)
• Consumer and amusement machines (arcade games)
• Increased in profitability by cost-cutting

In fact, the company increased its profitability, which was hampered due to Covid-19 last year. It also faced a decline in the arcade games division due to Covid-19 but expects to cover it with its consumer video games division.

The company plans to acquire treasury stocks worth 30 billion yen to increase shareholders’ wealth and capital efficiency. The company has also set some future goals like share buyback, investing in new video games, and increasing dividend per share for this year-end.

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For the video games division, the performance was far stronger than expected. This was followed by an increase in sales of consumer video games and royalty income. The company also witnessed an increase in amusement machine sales, which was achieved by fixed cost reduction. And there was an increase in sales of prizes for prize machines as well.

In the coming future, Sega will invest heavily in new video games, which will increase the expenses related to research & development and marketing & advertising.

Sega: what to expect going forward

Sega’s performance has been great, and the plans the company has for the future seem promising. Also, the company is open to acquisitions to improve its game development division. It looks like the company has developed a very aggressive strategy to achieve its future goals. And fans are likely to get more updates in the coming days.

Here’s what the plans of the company are for the future, according to Twinfinite:

“Perhaps even more interesting is the plan to proactively invest in the consumer game area. Sega expects to invest approximately 100 billion yen ($880 million) by March 2026 to expand its development pipeline, strengthen global mobile and online games, strengthen its customer relationship management department to revitalize user communities, and invest in new business areas like NFT.”

Markets like NFT’s and cloud gaming offer a great opportunity for growth, and every tech giant in the market is entering these sectors; recently, Netflix and Samsung also announced their entry into the Cloud gaming industry.

Comment down and let us know about your favorite Sega game of all time.

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