Sega Sammy Holdings FY2025 Integrated Report
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SEGA SAMMY HOLDINGS INTEGRATED REPORT 2025
Key Visual from Sonic the Hedgehog 3 movie ©2024 PARAMOUNT PICTURES AND SEGA OF AMERICA, INC.
Contents
Creativity is
Genesis✗Always Proactive,
Always Pioneering
Cautionary Statement with Respect to Forward-Looking Statements
Cautionary Statement for Investors and Shareholders with Respect to
Gaming Statutes and RegulationsStatements in this integrated report regarding the plans, estimates, beliefs, management strategies, perceptions, and other aspects of SEGA
SAMMY HOLDINGS INC. (“the Company”) and SEGA SAMMY Group Companies (“the Group”), including SEGA CORPORATION and Sammy
Corporation, are forward-looking statements based on the information currently available to the Company. Forward-looking statements include,
but are not limited to, those statements using words such as “believe,” “expect,” “plans,” “strategy,” “prospects,” “forecast,” “estimate,” “project,”
“anticipate,” “aim,” “may,” and “might,” and words of similar meaning in connection with a discussion of future operations, financial performance,
events, or conditions. From time to time, oral or written forward-looking statements may also be included in other materials released to the public.
These statements are based on management’s assumptions and beliefs in light of the information currently available to management. The
Company cautions you that a number of important risks and uncertainties could cause actual results to differ materially from those discussed in the
forward-looking statements, and therefore you should not place undue reliance on them. You also should not assume that the Company has any
obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. The Company
disclaims any such obligation. Actual results may vary significantly from the Company’s forecasts due to various factors. Factors that could
influence actual results include, but are not limited to, economic conditions, especially trends in consumer spending, as well as currency exchange
rate fluctuations, changes in laws and government systems, pressure from competitors’ pricing and product strategies, declines in the marketability
of the Group’s existing and new products, disruptions to production, violations of the Group’s intellectual property rights, rapid advances in
technology, and unfavorable verdicts in major litigation. [This INTEGRATED REPORT includes “forward- looking statements” within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.]
Sustainability website
Provides detailed in formation and da ta on activities
related to the Group’s five key issues (materiality). Please
read alongside the Integrated Report.
https://www.segasammy.co.jp/en/sustainability/ SEGA SAMMY HOLDINGS INC. (the “Company”) is registered with the Nevada Commission as a publicly traded corporation and has been
found suitable to directly or indirectly own the stock of its subsidiary, SEGA SAMMY CREATION INC., and Sega Sammy Creation USA Inc.,
GAN (UK) Limited, GAN Nevada, Inc., wholly owned subsidiaries of SEGA SAMMY CREATION INC. (collectively, the “Operating
Subsidiaries”), that have been licensed as manufacturers and distributors of gaming devices and an operator of an information service in
Nevada. Pursuant to Nevada law, the Company’s shareholders are subject to the rules and regulations of the Nevada Gaming Authorities. A
detailed explanation of Gaming Statutes and Regulations can be found on the Company’s corporate website:
The Operating Subsidiaries have also been licensed as suppliers, vendors, data providers, manufacturers and distributors of gaming devices
in multiple countries, states, and regions other than the State of Nevada (collectively, the “Other Regions”). In addition to the foregoing, the
Company’s shareholders may be subject to the same or similar restrictions as in the State of Nevada under the statutes of the Other Regions
or the regulations of the gaming authorities of such Other Regions.
Introduction
SEGA SAMMY Group Core Businesses
Raison d’Être
Message from the CEO
SEGA SAMMY Group’s Value (Mindset and DNA)
Message from the Chairman
History of Innovation that Create Captivating
Experiences 02
04 06 12
14
16
Strengthening of Non-Financial Capital
Materiality
Human Resources Strategy
Addictions and Disorders
Environment
Non-Financial Highlights 56
58
64 66 69
Governance
External Director Interview
Governance
Directors, Audit and Supervisory Committee
Members, and Executive Officers 70 72
82 Value Creation Story
Strengths of the SEGA SAMMY Group
Deployment Capability of IPs Serving as a Source
of Growth
Value Creation Process
External Environment (Risks and Opportunities)
Internal Challenges 18
20 22
24
26
Growth Strategy
Message from the CFO
Medium-Term Plan
Entertainment Contents Business
Pachislot & Pachinko Machines Business
Gaming Business
Financial Highlights 28 32
34 42
48 52
Other Data
Management’s Discussion and Analysis
Company Profile / Stock Information 8687
SEGAs Creativity is Genesis and Sammy’s Always Proactive, Always Pioneering are
the two most important values (mindset and DNA) of the Group. ▶ P. 12 Value
Based on our DNA of pursuing innovation, we aim to be a global brand that overturns common sense by becoming a Game Changer, taking the initiative to capture the world’s current trends and deliver captivating experiences to our users.
Group Value
Mindset and DNA
Group Vision
Vision
For details, please visit our website.
Be a Game Changer
Empathy is created by experiencing excitement together with more people.
The SEGA SAMMY Group’s raison d’être is to create a society overflowing with
empathy through the products and services we create, and to add color to the lives of people around the world.
Group Mission/Purpose
Raison d’Être
Captivate the World
-Making Life More Colorful-
01 SEGA SAMMY HOLDINGS
The SEGA SAMMY Group operates its business around three segments: the Entertainment
Contents Business, Pachislot & Pachinko Machines Business, and the Gaming Business.
Each business has established a unique position in its respective field, and by generating
synergies as a Group, we continue to create new added value and deliver captivating
experiences to people around the world.
Surprise the World
with Creativity
Offering a diversity of fun through consumer
and arcade game content, animation and toys
The Entertainment Contents Business promotes three areas: Consumer,
Animation, and AM (Amusement Machine) &TOY, offering a diverse range of
entertainment-related content and services.
Entertainment Contents Business
Creating Extraordinary,
Captivating Experiences
Creating a venue of electrifying and
captivating experiences outside of everyday
life through leveraging the Group assets
Drawing on the SEGA SAMMY Group’s accumulated technology and extensive
experience, we develop casino machines for the gaming market and operate
integrated resort (IR) facilities. Furthermore, by entering the North American online
gaming market, we aim to establish gaming as the Group’s third core business.
Gaming Business
* Total revenue by segment,
excludes Other and
Elimination
Sales
Composition
(FY2025/3)
SEGA SAMMY Group
Core Businesses
22.9 %
75.8 %
1.3 %
©SEGA
©ATLUS. ©SEGA.
©Buronson & Tetsuo Hara／COAMIX 1983, ©COAMIX 2007 Approved No. YRA-1 1 4 ©Sammy
©Buronson & Tetsuo Hara／COAMIX 1983, ©COAMIX 2007 Approved No. YSS-324 ©Sammy
©Buronson & Tetsuo Hara／COAMIX 1983, Approved No. KOT-324 ©2010-2013 Koei Tecmo Games Co., Ltd. ©Sammy
©SEGA SAMMY CREATION INC.
Changing
the Industry through
Innovation
Focused on pachislot & pachinko,
striving to create in pursuit of “wonder
and joy”
Let by Sammy Corporation, the Pachislot & Pachinko Machines Business
has produced numerous industry-first machines and services that overturn
conventional wisdom, under the motto “Sammy… the wellspring of new
ideas as an innovator in the industry.”
02 SEGA SAMMY HOLDINGS 03 SEGA SAMMY HOLDINGS
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Non-Financial Capital Governance Other Data
Raison d’Être
In every era, entertainment has given vibrancy to society. While entertainment is an industry that depends
on peace for its existence, we believe that it has in itself the power to bring peace to society and inspire
people. We will continue working as one team made up of all the Group employees toward our Group
Mission/Purpose of “Captivate the World -Making Life More Colorful-.”
SEGA SAMMY Group Mission Pyramid
Creativity is Genesis ×
Always Proactive,
Always Pioneering
Group Value (Mindset and DNA)
P. 12-13 Value
Material
Issues to Be Addressed
P. 56-57 Materiality Initiatives
Captivate the World
-Making Life More Colorful-
Group Mission/Purpose (Raison d’être)
Be a Game Changer
Group Vision (Ideal self)
Long-Term Goals to 2030
Entertainment
Contents Business: Pachislot & Pachinko
Machines Business: Gaming Business:
Enhancement of SEGA
brand value Establishment of No. 1
position in the industry Establishment of business
which can be the third pillar of the Group
Human
Resources Products and
Services Environment
AddictionGovernance
04 SEGA SAMMY HOLDINGS 05 SEGA SAMMY HOLDINGS
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Value Creation Story Strengthening of
Non-Financial Capital Governance Other Data
Message
from the CEO
Tireless reform to advance
to the next level
Haruki Satomi
President and Group CEO, Representative Director
A responsibility to grow our market cap
As Group CEO, I approach my duties with the recognition that
maximizing corporate value for the SEGA SAMMY Group is my
greatest responsibility. But it is important for me to recognize that
the definition of “corporate value” varies from person to person.
For shareholders, corporate value is measured by criteria such as
our stock price, market capitalization, and shareholder returns,
while employees might say it should be the work environment
and job satisfaction. For all our fans, it’s our ability to consistently
deliver the entertaining content they love, while for business
partners, it’s the win-win relationships we can build together.
Stepping back to consider society in general, the positive impact
we have on society must outweigh issues such as addiction, so
we must work tirelessly to minimize negative outcomes to ensure
people accept us as a productive member of society. In managing
the company, I strive to maintain awareness that the corporate
value I am working to improve is the sum of the myriad definitions
of social and economic value held by all of our stakeholders. The performance targets and increasing stock price, we have
introduced a post-delivery stock-based compensation system.
We have also introduced a special incentive scheme for
employee stock ownership association so that employees will
align with our vision and we can share the results of improved
performance with them. Since introducing this system,
participation in the stock ownership plan has risen from around
20% to over 80%, and I get the sense that employee awareness
of stock price has also increased. I am aware of the great
responsibility I bear, not only to shareholders but also to our
employees, who expect great things from us, and will manage the
company with the resolve to aim to surpass our highest market
capitalization ever of ¥1.4 trillion, then achieve further growth
beyond that.
To the next level
SEGA, a member of the SEGA SAMMY Group, has built its brand
by constantly introducing cutting-edge technology and
producing countless world firsts, embodying its corporate creed
of “Creativity is Genesis.” Our slogan for the current medium-term
plan, “Welcome to the Next Level!” is the catchphrase for the
video game console SEGA GENESIS (the North American
version of Mega Drive) that once swept through homes across
North America. This represents my desire to increase the
corporate value of the entire SEGA SAMMY Group globally to the
next level, just as SEGA once did.
Starting with the Group’s first medium-term management plan,
“Road to 2020” (for the fiscal years ended March 2018 to March
2020), and after the structural reforms in the fiscal year ended
March 2021, our previous medium-term plan, “Beyond the Status
Quo —Breaking Out of the Current Situation and Becoming a
Sustainable Company” (for the fiscal years ended March 2022 to
March 2024), adopted a policy of thoroughly improving capital
efficiency and launched full-scale business portfolio reforms. We
concentrated our management resources in the Entertainment
Contents Business, which we positioned as a growth area, and
promoted a transmedia strategy to maximize our IP value by
expanding on our mainstay IPs and broadening the adaptation
into movies, anime, merchandising, and more. During this time, we also pursued the withdrawal from
businesses that had been a factor of low profitability for the Group
over the long term. One of these was the transfer of our
Amusement Center Operation Business, one of SEGA’s core
Group Mission Pyramid, a representation of the Group’s shared
values, reflects these ideas. Our mission and purpose (raison
d’être), “Captivate the World -Making Life More Colorful-,”
expresses my hope for employees to continuously have a
positive impact on society through the captivating experiences
that entertainment creates, with pride.
Although I believe maximizing corporate value is about more
than simply increasing stock price and market capitalization, I do
have strong feeling about our stock price since it is the
quantification of our corporate value and a straightforward
assessment of our management. Our stock has recently
outperformed TOPIX. In terms of valuation, though we exceed the
average for our competitors in the pachislot & pachinko machines
industry, we lag behind competitors in the video game industry,
which is far from satisfactory. This shows that we have not gained
trust in our ability to produce stable profit growth. I take this state
of affairs very seriously and I feel we need to work together as a
Group to overcome this situation. To ensure that everyone in
management is committed to achieving our long-term businesses, which once had sales of over ¥100.0 billion. In
addition, we have set aside personal feelings to make rational
decisions based on capital efficiency, including divesting from
businesses the Group had worked on for many years, such as the
transfer of PHOENIX RESORT, which operates Phoenix Seagaia
Resort. Even in the Entertainment Contents Business that is our
growth area, we quickly implemented structural reforms in our
European business that were suffering low profitability caused by
the changes associated with the COVID-19 pandemic, including
transferring studios and reducing the workforce to address
concerning factors. At the same time, we also worked to
strengthen our business foundation through M&A in growth
areas. In mobile games, a sector with major growth potential, we
acquired Rovio Entertainment Ltd. (hereinafter referred to as
“Rovio”), while in gaming, which we expect to serve as our third
pillar of business, we have completed the acquisition of
Stakelogic B.V. (hereinafter referred to as “Stakelogic”) in the
Netherlands and GAN Limited (hereinafter referred to as “GAN”)
in the US.
Based on this solid footing, we are now taking it to the next level
with our medium-term plan, “Welcome to the Next Level!” This
plan sets quantitative targets of more than ¥230.0 billion in
cumulative adjusted EBITDA and an average ROE above 10%
over the three years from the fiscal year ended March 2025
through the fiscal year ending March 2027, while also striving for
further improvement of capital efficiency. To achieve this, we are
working to identify investment priorities and further optimize our
business portfolio. Our Pachislot & Pachinko Machines Business
will continue to serve as the foundation for revenue that will allow
proactive investment and shareholder returns, while our
Entertainment Contents Business will serve as our growth
business, with management resources allocated accordingly. We
also aim to make the Gaming Business, newly established in the
fiscal year ended March 2025, the third pillar of our business.
Steady advances in business portfolio
transformation
Sonic the Hedgehog 3, released in December 2024, achieved the
highest box office revenue in the series’ history with worldwide
earnings of over $490 million. In the fiscal year ended March
2025, the first year of our medium-term plan “Welcome to the
Next Level!,” we experienced true progress in expanding IP value
through transmedia development of the Sonic IP, boosted by the
CEO MESSAGE
06 SEGA SAMMY HOLDINGS 07 SEGA SAMMY HOLDINGS
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Non-Financial Capital Governance Other Data
Message from the CEO
movie’s success.While overall revenue and ordinary income declined, primarily
due to a reactionary drop of Pachislot & Pachinko Machines
Business which were strong in previous fiscal year with a hit, our
Entertainment Contents Business, positioned as a growth
business, achieved its highest profit level ever. In video games,
SONIC X SHADOW GENERATIONS and other mainstay new
titles recorded strong sales, with Metaphor: ReFantazio by ATLUS
receiving widespread critical acclaim for its quality and winning
awards at The Game Awards 2024 in the US and other
international awards. In addition to strong performance from new
titles, licensing revenue increased by approximately 20%* over
the previous fiscal year thanks to our transmedia strategy,
bolstering our revenue. The Sonic IP in particular has been
generating revenue across a wide range of areas and continues
to expand, including video adoption, merchandising, and
character licensing. We also made progress in applying the
success model from Sonic to other IPs, with the Like a Dragon
series and other IPs expanding into video adoption and other
areas. We also completed structural reforms of our European
business by transferring both Amplitude Studios (hereinafter
referred to as “Amplitude”) and Relic Entertainment, Inc.
(hereinafter referred to as “Relic”) through management buyouts,
establishing a solid foundation for regrowth.
* Excludes revenue related to the Sonic cinematic releases
We also achieved significant results in the Gaming Business. Business that occurred in the first year of the plan, but we view
this as a year to reinforce our revenue foundation, starting with the
launch of these titles, then aim for major improvement in the third
year. While achieving our medium-term plan targets will be no
easy task, we have a strong lineup of major new titles for Full
Game for the fiscal year ending March 2027, and with the
accumulation of revenue through the contributions from new
free-to-play (F2P) games in this fiscal year and the next as well as
licensing revenue and repeat sales which are steadily growing, we
believe we will achieve our targets.
Building a foundation for stable revenue and high
profitability at SEGA
The main challenge facing the Entertainment Contents Business
is its relatively low profitability compared to other companies in
the industry due to having few major hit titles and instability in the
development pipeline. By grasping the nature of this challenge,
we have strengthened multiple business models and built a
foundation that can generate stable revenue without depending
solely on hits by layering different revenue streams like “mille-
feuille.” (Entertainment Contents Business “Target Revenue
Structure”: P. 34)
The foundation of this layered revenue structure is the repeat
sales of the numerous titles we have released, with licensing
revenue including allocated revenue from video adaptations and
revenue from merchandising through our transmedia strategy
further bolstering this revenue base. Those business models can
sustain high profitability while minimizing risk since they require no
new production resources. F2P titles, while incurring operating
expenses, can generate sustained long-term revenue once
established. This high-margin and highly-stable revenue
foundation and sustainable revenue model help to mitigate
business volatility and increase risk tolerance for investing in new
titles. This mitigates the potential impacts of postponement of
new releases and creates a major upside if we create a hit. The
Animation area, which plays a part in this business structure, has
also evolved into a highly profitable business model. Our group
has transformed the business model from simply receiving
production fees as a subcontractor to investing in projects. Our
group now acts as the primary contractor, engaging in upstream
producing and licensing to generate revenue beyond production
fees, and a system is starting to work well that allows us to reap
the benefits of success fees on top of production costs when a
project is a hit.
Railroad Riches, gaming machines sold in the US and Asia,
became a major hit, resulting in SEGA SAMMY CREATION
(hereinafter referred to as “SSC”) achieving its first operating profit
since its foundation in 2013. PARADISE CITY, our integrated
resort facility in South Korea, also maintained high occupancy
rates and room rates throughout the year, recording its highest
net sales and operating income since its opening. This increased
equity method earnings has contributed to profits as well, so our
ordinary income is in the black. With those factors, the newly
established Gaming Business is off to a good start.
In the SEGA SAMMY Group, Sammy’s Pachislot & Pachinko
Machines Business has generated the majority of profits and
cash for much of the time since the management integration,
serving as the driving force behind the Group growth. However,
that market has continued to shrink, and shifting our business
portfolio away from excessive dependence on this business was
a huge challenge for management on our path to sustainable
development. Today, the Group has achieved a revenue structure
centered on the Entertainment Contents Business and a
balanced profit structure through the various reforms we have
undertaken, resolving this long-standing challenge. We are also
continuing to build on our established foundation for stable profit
growth, a key challenge for increasing our stock valuation. The
fiscal year ending March 2026, the second year of our medium-
term plan, is expected to fall short of our guidelines due to factors
such as delays in new titles in the Entertainment Contents In the fiscal year ending March 2026, we plan to focus on
bolstering the F2P layer through the launch of multiple major new
titles. We are also highly confident in the quality of Sonic Racing:
CrossWorlds, a new Full Game slated for launch, and hope it will
provide upside for the next fiscal year. In our European business, we plan to release a new title in the
Football Manager series on November 9, 2025, with the previous
title achieving a record high of 17 million cumulative players. We
plan to restore European business to a growth trajectory through
IPs with large fanbases, such as the Football Manager series and
Total War.
Sammy leading industry development while
generating stable revenue
Sammy is celebrating its 50th anniversary in 2025. To ensure the
Pachislot & Pachinko Machines Business continues generating
stable cash flow and remains a strength of the Group’s business
portfolio, our medium-term plan for the Pachislot & Pachinko
Machines Business aims for the top share of total utilization for
pachislot and pachinko machines and more than ¥90.0 billion in
three-year cumulative adjusted EBITDA. The fiscal year ended
March 2025 witnessed a decline in our share of total utilization,
one of our KPIs, but we have already identified the issues and are
moving forward with efforts to address them. Pachislot & pachinko machines must undergo verification to
check that specifications meet regulations before they are
launched to market. This means that the industry is heavily
influenced by changes in trends caused by revisions in
regulations. Sammy is committed to a product development and
repeatedly refines products until we are confident in the results,
and while this pursuit of quality gives us a competitive edge and
earns us high praise, it can sometimes make us slow to respond
to regulatory changes or shifting customer needs. In the fiscal
year ended March 2025, our targeted share of total utilization
decreased, due in part to a mismatch between market needs and
the specifications of machines we launched, as well as our failure
to create hits beyond the Hokuto No Ken series. Based on these
challenges, we are restructuring our development system to
respond better to changes in the market. We are also focusing on
the vital task of developing IP series that can consistently
generate hits. The importance of enhancing the value of existing
IP series such as Hokuto No Ken goes without saying, but we
must also create new flagship series through the use of new IPs. In the fiscal year ending March 2026, we are launching an
(Billions of yen) Entertainment Contents Business (Excluding Amusement Facilities) Amusement Facilities Pachislot & Pachinko Machines Resort Gaming Other and eliminations
FY2005/3 FY2006/3 FY2016/3FY2017/3 FY2018/3 FY2019/3FY2020/3 FY2021/3 FY2022/3 FY2023/3FY2024/3 FY2025/3
103.9 20.0
-0.7
40.8
-1 . 4
Operating income (loss) trend by business
08 SEGA SAMMY HOLDINGS 09 SEGA SAMMY HOLDINGS
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Non-Financial Capital Governance Other Data
Message from the CEO
initiative that represent a major step toward strengthening and
stabilizing our revenue foundation as well as revitalizing the
pachislot & pachinko machine industry, the basic strategies in our
medium-term plan.The new pachislot machine cabinet we are launching this fiscal
year may be what we need to break the vicious cycle of declining
player population, soaring pachislot & pachinko machine prices,
and increased management costs borne by pachinko halls that
lead to worse user experiences, causing the market to shrink. Our
new pachislot cabinet will allow pachinko halls to replace
products by swapping out only the parts that control gameplay
instead of replacing the entire cabinet. The sales price will rise
slightly during the initial installment as our development and
manufacturing costs increase. However, future replacements
involve selling only the interchangeable parts, which will reduce
capital investment costs and is designed to cut shipping cost and
operation burden for machine replacement at pachinko halls. The
longer cabinets remain in use, the greater the cost savings. If
these savings are used to improve user experience, we believe it
will help counteract the decline in player population. This will also
allow us to maintain profit levels while reducing costs for pachinko development and sales business. We obtained gaming machine
sales licenses in different locations starting with Macau, then in
2017 secured the Nevada state license, said to be the most
stringent. This was also an important step in gaining credibility as
an IR operator. SSC has steadily built relationships with
customers while delivering consistent results. We also
established the joint venture PARADISE SEGA SAMMY Co., Ltd.
(hereinafter referred to as “PSS”) with South Korea’s PARADISE
GROUP in 2012 and became involved in operating PARADISE
CITY, one of Northeast Asia’s largest integrated resort facilities,
which opened in 2017. While we decided to halt our entry into the
Japanese integrated resort business when Yokohama’s bid was
withdrawn, the human resources and technology we cultivated
through these businesses as well as the management resources
accumulated through persistent effort over more than a decade
now serve as the foundation of our Gaming Business.
In the fiscal year ended March 2025, the new video slot
machine cabinet Genesis Atmos developed by SSC and the
compatible title Railroad Riches won awards in two categories at
the 2025 EKG Slot Awards hosted by US gaming research
company Eilers & Krejcik Gaming, LLC. This marks the first time a
Japanese company has earned this award. This award-winning
cabinet and title represent the culmination of the technical
expertise of the SEGA SAMMY Group, which has built a
reputation for quality and trust in amusement machines and
pachislot & pachinko machines, and have been recognized for
their outstanding performance. This success has strengthened
the relationships SSC has built with its existing customers and
created opportunities to connect with new ones. Performance
remains strong at PARADISE CITY, where net sales from both the
hotel and casino have reached record highs, and this business
has also allowed us to build our expertise in casino operations. The global casino market represents an enormous
opportunity. In addition to physical casinos, online gaming is being
legalized in many parts of the world, leading to a rapid expansion
of markets such as online sports betting and iGaming. This is
leading to increased demand for comprehensive solutions that
integrate physical and online gaming. Integrating the
management resources of our recent acquisitions Stakelogic and
GAN with the existing businesses developed by the SEGA
SAMMY Group allows us to offer our services to physical and
online casino operators. Leveraging these strengths, we will strive
to be a comprehensive casino solutions provider in the future and
build a new foundation for business. (Strategies for the Gaming
Business: From P. 49) Through these initiatives, we will continue
halls, and if other manufacturers adopt this cabinet, it will serve as
a new source of revenue. This initiative is just one part of my vision
for revitalizing the industry. I will continue proposing initiatives
proactively that involve the entire industry and lead efforts toward
long-term coexistence and mutual prosperity for all market
participants in the future. (Policies for revitalizing the pachislot &
pachinko machines industry: From P. 44)
Reproducible success in the Gaming Business
In the fiscal year ended March 2025, the Group established the
Gaming Business as a new business segment, with preparations
underway for a foray into the North American gaming business,
including online gaming.
This business began when SEGA SAMMY decided to enter
the integrated resort business in Japan. Initially, we aimed to
develop an integrated resort business in Yokohama and
undertook various preparations and initiatives to achieve this
goal. SSC was established in 2013 as a crucial pillar in these
efforts, leveraging management resources from SEGA’s
amusement machine business to enter the casino machine to establish this segment as SEGA SAMMY’s third pillar of
business.
Stoking the flames of passion
Even before the popularization of the term “human capital
management,” the Group has been working to increase
engagement by creating better work environments, reinforcing
our human capital, and other human resources strategies. These
efforts are not merely a formal response to external pressure, but
an integral part of our management strategy, something we
consider essential for sustainable corporate value improvement.
As one example of this, we define human capital that possesses
global values aligned with our strategy of global business
expansion as “culturally diverse human resources” and work to
reinforce this human capital. Our engagement score, one of our
KPIs, has improved dramatically across the Group from 50.1
points in the fiscal year ended March 2021 to 57.5 points, bringing
us within reach of our target for the fiscal year ending March 2031,
58 points or higher. This is a result of a continuous cycle of
measuring engagement and getting feedback from work sites,
reflecting this feedback in improvements to its HR system and
benefits, and then deploying successful models across our
operating companies. We will continue to create an environment
where our human capital, the force behind our ability to create
captivating experiences, can work in comfort and with passion to
drive our value creation process based on the cycle of strengths
starting from our human capital to maximize corporate value.
In direct dialogues with employees, I always encourage
employees to tend to the fires of passion in their own hearts, and
share that passion with those around them. My dream is to one
day make the SEGA SAMMY Group the top entertainment
company in Japan and one of top five entertainment companies
in the world. While this dream may still seem a lofty goal, if each
and every employee works passionately to embody our Mission/
Purpose and spreads that flame to those around them, we will
generate an even greater force that will propel us toward this goal,
one step at a time. With this grand vision of the future, I will strive to
first focus on reaching the “next level,” a major step forward in our
journey. Please continue to expect great things from SEGA
SAMMY Group.
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©SEGA
1995
1989 20002003
2001
The two companies, which share the “innovation gene” of always being at the forefront of the industry
and creating products and services that other companies do not have, merged in 2004 to form the SEGA
SAMMY Group. We will continue to adapt to change based on our values of Creativity is Genesis and
Always Proactive, Always Pioneering, and aim to Be a Game Changer, which is our ideal self.
Creativity is Genesis
SEGA
Always
Proactive, Always
Pioneering
Sammy
SEGA SAMMY Group’s Value (Mindset and DNA)
A Fusion of the DNA of Challenge and Creativity
1960 1966 19851988 19931998
SEGA 1000
The Company succeeded
in developing the first
domestically produced
jukebox. It was a huge hit in
Japan and became the
forerunner of the SEGA
brand.
Upholding its corporate creed, “Creativity is Genesis,” SEGA has produced innovative game consoles and software ahead of their time, creating unprecedented experiences and continuously delivering new forms of “fun” to the world. These efforts have
cultivated the globally recognized SEGA brand and generated numerous IPs that endure to this day.
Sammy started its business with the sale of game machines under the corporate creed and mindset of “Always Proactive, Always Pioneering,” which means to keep trying everything without fear of failure. The company then turned to manufacturing
pachislot & pachinko machines, and through its thorough research and development, produced a number of hits. The attitude of thoroughly creating and releasing products to the world, such as by performing repeated test-shooting, has driven many hits,
and that same thorough spirit is still maintained today.
We have cultivated the SEGA brand and created many IPs that have continued to the present day, while providing new “fun” always ahead
of the times
With thorough craftsmanship and a spirit of challenge, we have led the pachislot & pachinko machines industry by developing pachislot &
pachinko machines equipped with numerous industry-first features.
©SEGA
©SEGA
Periscope
An arcade game that became a worldwide hit.
Expanded the SEGA brand globally. Virtua Fighter
The world’s first commercial
3D computer graphics (CG)
fighting game
UFO CATCHER
A crane game machine
that still enjoys strong
popularity today
Hang-On
The world’s first
motion-controlled
game cabinet
©SEGA
©SEGA
SEGA GENESIS (Mega Drive)
A home video game console that
became a massive hit in Europe and
the North America, making SEGA’s
name known worldwide. Gave rise
to Sonic, SEGA’s flagship IP. Dreamcast
The first home video game
console that came standard
with internet communication
capabilities
©SEGA
Pachinko CR
Kudamonobatake
Sammy’s first hit product
as a pachinko machine
(67,000 units sold)
ALADDIN
The industry’s first
single-bonus hitter
pachislot machine
©Sammy
©Sammy
©Sammy
DISC UP
The first pachislot
machine equipped
with AR functions GeGeGe No Kitaro
pachislot machine
The first in the industry to
feature a 5.5-inch LCD.
©Mizuki Pro ©SOFTGARAGE Inc.
©Sammy
Beast King
The pachislot machine
that sparked assist time
(AT) boom
©Sammy
Pachislot Hokuto No
Ke n
A record-setting
pachislot machine that
sold over 620,000 units,
becoming the biggest
megahit in pachislot
history
©Buronson & Tetsuo Hara/COAMIX 1983
©Sammy
Management Integration
©SEGA
Sonic the Hedgehog
©SEGA
12 SEGA SAMMY HOLDINGS 13 SEGA SAMMY HOLDINGS
IntroductionGrowth Strategy
Value Creation Story Strengthening of
Non-Financial Capital Governance Other Data
Message from the Chairman
Hajime
Satomi
Chairman,
Representative
Director
Championing new
endeavors to succeed
on a global scale
Passing down values
SEGA and Sammy share similar inherited values. Based on its
corporate creed “Creativity is Genesis,” SEGA has a long history
of creating entirely original entertainment. Meanwhile, Sammy
has embodied its philosophy of “Always Proactive, Always
Pioneering,” taking on new challenges within a set of rules to
produce novel ideas and create various industry-first pachislot &
pachinko machines.The fusion of these values lies at the heart of SEGA SAMMY
HOLDINGS, and ensuring that this permeates the Group and
guides us is one of my most vital duties. While both companies
have similar values, this unified Group value had not fully taken
root when the companies first merged, often resulting in failure to
achieve results. Recently, I have felt a significant shift. Through the
Satomi Cram School, aimed at conveying the basis for decision-
making and my experience to top management through direct
dialogues, directors from each Group company have come
together over nearly half a year to work on issues together. This
has led to deeper ties among directors, some of whom are close
enough now to consult one another on work even after they’ve
returned to their duties, creating networks across the Group. This
Group-wide networking and sharing of values has become a
major driving force behind the SEGA SAMMY Group of today. Now, how we put these shared values into practice is of the
utmost importance. Risk is part of any creative endeavor; nothing
new is created through fear of failure. Even if you try and fail, using
what you learned for your next step is important, and I have
encouraged taking on challenges by repeatedly telling
employees, “fail well while you are young.” At the same time, we must not waver in our commitment to
quality. If we betray the expectations of stakeholders even once,
rebuilding the faith placed in us will not be easy. Not just our
customers, but our business partners, associated businesses,
and even human capital who have an attachment to the Group’s
products and services would leave, damaging our brand value,
social value, and even long-term corporate value, leading to
losses. While it goes without saying that achieving our
performance targets for each fiscal year is important, our
commitment to quality and releasing products and services only
when they reach our own lofty standards are also vital.
Challenges from the long-term perspective
When SEGA and Sammy merged in 2004, the Board of Directors
at SEGA tried to pass a resolution to stop development of a
certain title. The project was unprecedented, with a world setting
that truly embodied the spirit of “Creativity is Genesis,” but
development costs had gone over the initial budget and it was far
behind schedule. While there was no guarantee that the project
would be a hit if we forged ahead and released it, I felt that
discontinuing it would not only ensure that we had wasted all the
time and money spent on it, but that it would have disheartened
the creative spirit of the outstanding talent involved in
development. I put my faith in the passion and resolve of the
development team and approved the continuation of the project.
That title was the first installment of Like a Dragon series which
becomes one of SEGA’s most iconic IPs now. Supporting an
endeavor that employees were strongly committed to led to the
creation of a mainstay IP that has served as the driving force
behind SEGA’s current profits. In terms of business portfolio, which is broader perspective, the
long-term challenges we have been engaging in have come to
fruition. One of these is the Gaming Business, which we newly
established in the fiscal year ended March 2025. In the early 2010s, when amusement center market growth has
slowed down, we were exploring ways to streamline operations in
the Amusement Machine Sales Business, SEGA’s original
business, as well as the potential for new businesses using those
resources. From there, we established SEGA SAMMY
CREATION (SSC) in 2013 to leverage management resources
from this business to enter the Japanese IR (integrated resort)
market, which we initially aimed at, and began developing casino
machines. We have invested the expertise of outstanding human
capital cultivated in amusement machines development and
ceaselessly honed products over more than a decade since the
company was founded. This led to the release of Railroad
Riches™ compatible for the Genesis Atmos® video slot machine in
2024 with tremendous success, recording top utilization in the US
and winning prestigious industry awards. SSC’s exceptional
product quality sets them apart from the competition, which is
why I look forward to the future hits they will continue to produce.
This success has also helped us forge stronger relationships with
our casino operator customers which will serve as major
momentum for our online gaming business going forward. PARADISE CITY, which opened in 2017 as a joint venture with
PARADISE GROUP and serves as another stepping stone for
entering the Japanese IR market, also recorded its best performance ever in the fiscal year ended March 2025. The
expertise in running land-based casinos developed through this
venture has helped us develop products that precisely meet the
needs of casino operators and users. While we regrettably
decided to withdraw from entering the Japanese IR market
following Yokohama’s withdrawal from its IR project, all the
technology, expertise, and talent we accumulated through this
major endeavor now serve as the foundation for SEGA SAMMY’s
new venture into the gaming business. To fill in the missing pieces
needed for the online gaming business, we will welcome GAN
and Stakelogic which have high technical capability into the
Group for the fiscal year ending March 2026 and steadily build a
foundation for our gaming business. I am confident that if we build
a steady track record in the gaming market, a huge global market
that we expect to see continued growth, we can make this
business as another major pillar in our business for the future.
Someday
It has been 21 years since SEGA and Sammy merged in 2004.
Currently, the SEGA SAMMY Group has grown into more than a
manufacturer of pachislot & pachinko machines and game
software to become a corporate group that has made
entertainment its calling. To provide captivating experiences
through entertainment that continuously increase corporate
value, Sammy will keep working on the challenging problem of
revitalizing the entire industry while SEGA strives to grow its
business even more and produce huge hits that will serve as
pillars of its business. The foundation for achieving these is our
human capital. What underpins Group growth are all the human
capital overflowing with creativity in the existing businesses, such
as the Entertainment Contents Business and the Pachislot &
Pachinko Machines Business, as well as all the human capital in
the Gaming Business who have inherited the technology and
knowledge from those businesses and accumulated new
expertise.
Enhancing our human capital requires us to embrace diverse
values, hire and develop all kinds of talent, and identify individual
aptitudes to help each employee reach their full potential. Most
importantly, we must instill the shared values of the SEGA
SAMMY Group—“Creativity is Genesis x Always Proactive,
Always Pioneering”—in each and every employee and encourage
them to put these values into practice. By doing so, I believe SEGA
SAMMY will someday be counted among the world’s leading
entertainment companies.
14 SEGA SAMMY HOLDINGS 15 SEGA SAMMY HOLDINGS
IntroductionGrowth Strategy
Value Creation Story Strengthening of
Non-Financial Capital Governance Other Data
Strengthening of the Mobile Business
Entertainment Contents Business Promotion of
transmedia
strategy
2005 Launch of
Like a Dragon
2020 Release of the first
Sonic movie
Sonic the Hedgehog
2024Launch of SONIC X
SHADOW GENERATIONS
in conjunction with the movie 2006Sports Interactive Ltd.
2023 Rovio Entertainment Corporation
2016
Launch of
Persona 5
2012
Launch of the service of PHANTASY STAR ONLINE 2
The SEGA SAMMY Group was formed in October 2004 through the management integration of SEGA, a creator of well-known innovative products, and Sammy, a developer of various industry-first products.
By leveraging the strengths and positioning of each business segment, and dynamically carrying out M&A and structural reforms, we aim to build an optimal business portfolio that reduces earnings volatility.
[Operating Income by Segment after Management Integration]
Management Integration
History of Innovation that Create Captivating
Experiences
■Pachislot & Pachinko Machines Business ■ Entertainment Business* ■Resort Business ■Gaming Business
Main M&A
Newly established
Transfers,
withdrawals, etc.
20052006 2016
2007 2017
2010 2020
2008 2018
2011 2021
2013 2023
2009 2019
2012 202220242025
Medium-Term Business Plan Structural reformsRecovery phase Structural
reformsBeyond the Status Quo WELCOME TO
THE NEXT LEVEL!
Road to 2020
Gaming Business
* Entertainment = Entertainment Contents Business. SEGA-related businesses became a standalone segment in 2015.
2024
Strong performance of
Railroad Riches
2025 Stakelogic B.V.
GAN Limited
Pachislot & Pachinko
Machines Business
Up to 2007Transition period for
regulatory revisions
(No. 5 model)
2018 to 2022Transition period for regulatory
revisions
(No. 6 model)
©SEGA
© Games Workshop Limited 2020.
Published by SEGA.
©ATLUS. ©SEGA.
©2020 PARAMOUNT PICTURES AND
SEGA OF AMERICA, INC. ALL RIGHTS
RESERVED.
©2024 Rovio Entertainment Ltd ©Buronson & Tetsuo Hara／COAMIX 1983, ©COAMIX 2007
Approved No.SAE-307 ©Sammy
©Buronson & Tetsuo Hara／COAMIX 1983, Approved No.
KOJ-111 ©2010-2013 Koei Tecmo Games Co., Ltd. ©Sammy
©Kabaneri Committee ©Sammy
©Buronson & Tetsuo Hara／COAMIX 1983, ©COAMIX 2007
Approved No.YRA-114 ©Sammy
©SEGA SAMMY CREATION INC.
© PARADISE SEGASAMMY Co., Ltd. All rights reserved.
2008 Pachinko CR Hokuto No Ken Kenshiro/Raoh
made a big hit 2022Pachislot
Kabaneri of
the Iron
Fortress
made a big hit 2023Smart
Pachislot
Hokuto No
Ken made
a big hit
2009GINZA Corporation 2016ZEEG LLC.
2011
Taiyo Elec Co., Ltd.
2012Completed construction of
Kawagoe Factory and
Sammy Logistics Center 2016 Launch of
Pachinko CR Shin
Hokuto Muso
2017
PARADISE CITY opens
2019
Installation of
Genesis Star begins
in the United States
2017
Acquisition of U.S. Nevada license
Company-wide strategy
⃝ Business and organizational
restructuring to strengthen
growth foundations
⃝ Strengthening pachinko development system and improving
procurement costs (Pachislot & Pachinko Machines)
⃝ Optimization of the number of amusement facility locations
(Entertainment)
⃝ Workforce optimization through voluntary retirement,
narrowing down development titles (Entertainment)
⃝ Streamlining of the organization⃝
Reduction in the number of titles⃝ Inventory disposal⃝ Write-down of titles under
development
⃝ Clarification of core businesses
Segment reorganization into three businesses:
Pachislot & Pachinko Machines Business,
Entertainment Business, and Resort Business
⃝ Streamlining of
business portfolio
⃝ Concentration of management
resources into growth areas
⃝ Improvement of profit margins in
core businesses
⃝
Review of business structure⃝
Reduction of fixed costs⃝
Review of the balance sheet
⃝ Growth investments (CS area)⃝ Strengthening the revenue base
(Pachislot & Pachinko Machines)
2018Relocation and consolidation of
head office functions
2025Segmentation of
the Gaming
Business (FY)
New
Exit
M&A
M&A M&A
M&A
2012
PHOENIX RESORT CO., LTD.
M&A
M&A
M&A New
2012PARADISE SEGASAMMY CO., Ltd.
New
2013SEGA SAMMY CREATION INC.
New
New
2024Transfer of PHOENIX RESORT
Exit Exit
2012
SEGA Networks Co., Ltd.
2021 Withdrawal from domestic IR business /
withdrawal from amusement facilities business
Structural reforms
2015
2014
2013
ATLUS CO., LTD.
2005The Creative
Assembly Ltd.
M&A
16 SEGA SAMMY HOLDINGS 17 SEGA SAMMY HOLDINGS
IntroductionGrow
