Sega Sammy has reported a net sales upswing within its Entertainment Contents business despite a downturn in video game unit sales.

According to the company's fiscal report for the quarter ended June 30, 2022, full game sales dropped to 5.14 million units in Q1 FY23 from 6.58 million units in Q1 FY22.

Despite that dip, net sales in the division increased to 52.7 billion yen ($390.6 million) from 47.4 billion yen ($351.3 million) over the same period. Consolidated net sales across the entire company also rose to 66.1 billion yen from 59.4 billion yen.

Overall, Sega Sammy said its business continues to deliver "steady performance" despite repeat sales slightly falling below expectations. It noted that free-to-play releases "performed strongly and remained steady overall."

The Japanese company also highlighted the positive sales impact of titles like Sonic Origins, 13 Sentinels: Aegis Rim, and Hatsune Miku: Project DIVA Mega Mix+ during the quarter.

Sega expects steady progress as the year continues due to the release of new titles from Q2 including Sonic Frontiers and the upcoming Persona remasters. The company also suggested the video game market will continue to experience "revitalization" despite a perception that some trends are cooling down as the impact of the pandemic subsides.

"Although the recent market trends seem to be cooling down due to the impact of changes in consumer behavior following the normalization of social and economic activities, there has been a growing expectation of the continued revitalization and growth of the game market on a global scale in the future," wrote the company.

Looking ahead, Sega Sammy is forecasting full-year net sales of 235.9 billion yen within its Entertainments Content division.