Sega Sammy Sees Mixed Results as Games Grow and Pachinko Slows

Japanese entertainment powerhouse Sega Sammy Holdings has released its financial report for the fiscal year ending March 31, 2025, showing varied outcomes across its business units. 

Pachinko Revenue Falls, But Sega Sammy’s New Ventures Signal Promising Future

The company’s traditional pachinko and pachislot operations saw a significant decline. However, its launched gaming division and hospitality ventures recorded impressive growth, suggesting a strategic shift that is beginning to pay off.

Revenue from the traditional pachinko segment fell by 27% compared to last year, totaling ¥97.1 billion ($654 million), with operating income dropping by almost half. The company linked this decrease to declining post-pandemic demand and planned delays in launching new machines to better match changing consumer preferences.

Despite this downturn, overall group revenue decreased by 8.5% to ¥428.9 billion ($2.89 billion) due to a one-time income boost from selling assets and strong gains in other areas. Adjusted EBITDA rose 14% to ¥62.2 billion ($419 million) supported by selling shares in its resort operations.

Sega Sammy’s new gaming division, which started in mid-2024, became a standout performer. This part of the business includes the US-focused slot machine company Sega Sammy Creation investments in online gaming, and a 45% stake in Paradise City, an integrated resort in South Korea. The division brought in ¥5.4 billion ($36.4 million) in sales and turned a profit, with an EBITDA of ¥1 billion ($6.7 million).

Sega Sammy’s Casino and Slot Machine Success Marks Turning Point from Pachinko Past

Paradise City saw its best year yet, with record highs in both casino and hotel areas. The resort got a boost from more Japanese VIP guests and a steady rise in tourism in South Korea. Casino drop volumes stayed high, while the hotel saw full rooms and high-end prices. Because of this, net profit grew to more than twice last year’s amount, reaching ¥72.2 billion ($488 million).

Sega Sammy’s move into the gaming device market also picked up speed. The company sold over 1,300 slot machines this year, more than double what they sold before. They expect to grow even more, with plans to have over 2,500 machines running by the end of FY26.

Experts predict steady profits and a 9% boost in revenue for the upcoming fiscal year, which is in line with the company’s track record over the last five years. While predictions stay consistent, analysts keep a positive outlook, setting share price targets between ¥2,800 ($19.20) and ¥4,200 ($28.80).

These findings point to Sega Sammy’s slow but purposeful shift, striking a balance between its pachinko roots and growing chances in digital and global gaming markets.