Sega Q2 results exceed expectations, driven by surge in operating income for pachislot and pachinko machines

Sega's second quarter results for 2026 surpassed expectations, primarily due to a substantial 331.6% increase in operating income from its pachislot and pachinko machines business. Entertainment Contents segment also outperformed forecasts, despite a 2.4% revenue dip to ¥145.1 billion ($916.8 million). For the quarter ending September 30, 2026, Sega experienced a 23.5% decline in full game sales, reaching ¥20.5 billion ($129.5 million) compared to ¥26.8 billion ($169.3 million) in the same period last year.

However, 10.6 million full game units were sold, up from 9.3 million the previous year. New titles generated ¥0.3 billion ($1.8 million) in revenue, down from ¥8.7 billion ($54.9 million), while catalogue sales increased by 12.2% to ¥20.2 billion ($127.6 million). Free-to-play sales fell 3.3% to ¥26.0 billion ($164.3 million), while DLC and subscription services performed steadily, and Rovio's performance was generally in line with expectations.

Sega's management, including Angry Birds creative officer Ben Mattes, aims to grow the mobile and free-to-play expertise across the company's portfolio, with successful wishlists for upcoming titles Stranger Than Heaven and Persona 4 Revival.