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Sega finds success in the digital gaming market as fiscal results show decline in traditional retail sales

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In the wake of unimpressive software sales in retail stores, Sega is reporting success in the digital market for the fiscal year ending Dec. 31, 2013.

During this period, the company launched numerous package software titles including Football Manager 2014 and Sonic Lost World, but reports low sales during this period. Total packaged software sales saw a year-on-year decline, with just over 6 million copies of Sega releases sold internationally.

"During the first three quarters of the fiscal year ending March 31, 2014, there were growing hopes that the Japanese economy would break out of deflation and experience economic recovery amid the trend toward yen depreciation and rising stock prices backed by the effects of the economic policies set out by the government's new administration," reads a statement from the company on the apparent "softening" of the packaged software market. "However, uncertainty still prevailed due to worries of a slowing economy from the consumption tax rise that will be implemented in April 2014."

However, the company reports an increase in digital sales for mobile and Windows PC titles thanks to the continued success of online role-playing game Phantasy Star Online 2 and mobile games Puyopuyo!! Quest and Chain Chronicle. The latter two releases saw over 6 million downloads in December 2013 and 2 million downloads in January 2014, respectively.

Yesterday Sega revealed Sonic Boom, its upcoming entry in the long-standing Sonic franchise for Wii U and Nintendo 3DS. The title will be developed by Western studios Big Red Button Sanzaru Games and is slated to extend into additional television and gaming media.

This is the third and final title in Sega's exclusive deal with Nintendo that began last May. Its partnership with Nintendo resulted in the development of Sonic: Lost World and Mario and Sonic at the Sochi 2014 Olympic Games last year.

The company told us in October it plans to focus on the development of more mobile titles and deliver games that are connected across all platforms. Over 40 Sega titles are currently available on mobile devices.