As video game consumers, we are less likely to buy new games than ever before, particularly on launch day. Sega pinpoints pricing, the sheer number of games releasing in similar genres, and the expectation that ‘definitive editions’ like Persona 5 Royal will be released for this industry-wide issue. The company also blames an inability “to properly convey the appeal of our games” for its specific woes.
In a Q&A session following Sega’s financial report that was summarized by Game Biz, the company fielded questions about the low number of new game sales when compared to the publisher’s legacy releases. This quarter, new releases made up less than 17% of Sega’s overall video game sales, and is only expected to rise to around 20% by the end of the financial year.
The report, which has been translated by GamesRadar+, shares the reasons why the company believes new games make up such a small percentage of sales. “In recent years, the sale of major new releases has continued to trend towards falling short of sales expectations despite being seen as high quality,” Game Biz reports. “Sega believes this is possibly due to factors such as pricing in combination with the availability of other games in the same genre at the time of launch. Users are also hesitant to make purchases just in case the ‘definitive edition’ is released shortly afterwards.”
While the report doesn’t name any specific definitive editions, it’s referring to games like Death Stranding Director’s Cut or Sega’s own Persona 5 Royal, which are similar to the original game but with additional content. Sega also complained of “an issue with its marketing” that it is struggling to pinpoint. “While Sega hasn’t pinpointed the exact cause, it has recognized an issue with its marketing where it’s unable to properly convey the appeal of its games, and is currently analyzing the situation,” the report reads.
Sega might be blaming its marketing, but I think it’s more likely to reflect the working class’s declining free time and expendable income, but that might not go over as well with shareholders.
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