Football Manager 25 has been canceled after two delays, leaving the series without an entry for 2025. Developer Sports Interactive announced the news in a blog post, telling fans that it would instead focus on Football Manager 26, which will likely be released late this year.
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Sports Interactive encountered multiple problems while developing Football Manager 25. That includes adding female teams to the game. This required extra motion capture for female players, delaying the game’s development. Other features, such as player experience and user interface, weren’t up to game publisher Sega’s (SGAMY) (SGAMF) standards.
What This Means for SGAMY Stock
With the cancelation of Football Manager 25, Sega has updated its outlook for Fiscal 2025. The video game publisher now expects Entertainment Contents segment revenue of $2.1 billion, compared to a prior estimate of $2.2 billion. It also lowered its video game revenue guidance from $1.55 billion to $1.42 billion.
The change to Sega’s guidance comes after the company reported a $40.2 million loss in Q3 due to work-in-process assets write-downs. This is tied to its cancelation of Football Manager 25 and the divestment of Amplitude Studios in the first half of its Fiscal 2025.
SGAMY stock is down 1.32% as of this writing, eating away at its 6.75% increase year-to-date. Investors will also note that Sega stock is up 44.2% over the past 52 weeks.
Is SGAMY Stock a Buy, Sell, or Hold?
Turning to Wall Street, SGMAY stock lacks significant analyst coverage but there are two ratings for SGAMF shares. The consensus for Sega is Moderate Buy based on two Buy ratings over the last three months. With that comes an average price target of $22.87, a high of $23.84, and a low of $21.91. This represents a potential 17.28% upside for SGAMF stock. These ratings and price targets will likely change as analysts update their coverage of the company following its latest earnings report.
