Sega
Sonic x Shadow Generations sold over a million copies in a single day when it launched in October
Sega is considering launching its own Netflix-style subscription service for video games, a move that would accelerate the transition of games to streaming.
There are already a number of similar services on the market, such as Xbox Game Pass and PlayStation Plus, which allow players to pay a monthly fee to access a range of titles rather than owning them outright.
Sega President Shuji Utsumi told the BBC that these subscription products were “very interesting” and that his company was “evaluating some opportunities.”
“We are thinking about something – and discussing something – that we cannot disclose at this time,” he said.
Some in the industry have expressed concern about the move, but told the BBC that gamers could “fork out more money” for multiple subscription services.
It's not just Sony and Microsoft offering game subscriptions: there are now countless players in the space, with competitors such as Nintendo, EA and Ubisoft all offering their own membership plans.
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Shuji Utsumi (right) attends the Sonic 3 movie premiere in Hollywood with Sega CEO Haruki Satomi (left) and Sonic series producer Takashi Iizuka (center)
Currently, various Sega games are available on several streaming services.
The amount charged by these services individually varies depending on the features and games made available. For example, Xbox Game Pass prices range from £6.99 to £14.99 per month, while PlayStation Plus ranges from £6.99 to £13.49 per month.
So it would make financial sense for Sega for people who play its titles to pay it subscription fees rather than its competitors.
This could also be attractive to people who primarily want to play Sega games, but for everyone else it could result in higher costs.
Rachel Howie plays games on Twitch, where she is known as DontRachQuit by her fans, and said she is “excited and nervous” about another subscription service.
“We already have so many subscriptions that we find it very difficult to justify taking out a new one,” she told the BBC.
“I think SEGA will definitely have a dedicated audience that will benefit from it, but will the average gamer choose this over something like Game Pass?”
And Sophie Smart, production director at UK developer No More Robots, agrees.
“As someone whose first console was the Sega Mega Drive, what I would love more than anything is to see Sega prosper and this feels like a step in a modern direction,” she said .
But she wondered if Sega had indeed created a rival subscription service if it would result in their games being removed from other services.
“If so, it could mean consumers are spending more money to own multiple subscription services,” she said.
Bringing back Sega
Shuji Utsumi spoke to the BBC ahead of the Sonic 3 movie premiere on Saturday, following a year in which he oversaw the launch of Metaphor: ReFantazio, Like a Dragon: Infinite Wealth and the latest Sonic the Hedgehog game.
Our conversation started unexpectedly.
The very first thing Mr. Utsumi said to me seemed to suggest that the company, which dominated gaming in the 1990s with a rivalry between Sonic the Hedgehog and Nintendo's Super Mario, may have lost its way.
“I want to make Sega really great again,” he said.
He said that Sega had placed too much emphasis on domestic success in Japan and that it needed to re-establish itself on the global stage, which would mean expanding beyond its base.
“Sega kind of lost confidence,” he said.
“But why? Sega has a great group of RPGs, Sega has incredible IP, Sega is a really well-known brand.
“So I thought, hey, this is not the time to be defensive, but more offensive.”
He said the company was too concerned with controlling costs when he took over and that he wanted to “bring a rock and roll mentality” to the game.
When I told him it sounded familiar – Sega's marketing in the '90s often tried to position Sonic the Hedgehog as the cool alternative to Mario – he agreed.
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Sonic and Mario had a historic rivalry in the 1990s, which significantly boosted sales of Sega's Mega Drive and Nintendo's SNES.
He said the company now just had to “make a great game” in the series.
“The next one will be quite a challenging and exciting match which we are working on,” he said.
But he wouldn't reveal whether Sega was considering a sequel to the popular Sonic Adventure series.
“Sonic Adventure was kind of a game changer for Sonic,” he said.
“When we release it, it should be good, it should be impressive. We have to meet or exceed people's expectations, so it takes time.”
One part of the series that fans have been eagerly clamoring for is the Chao Garden – a much-loved virtual pet synonymous with Sonic Adventure.
Mr Utsumi said “we talked about it” – but would not go into detail, only that he could not “say too much”.
The future of Sega
Unsurprisingly, Mr. Utsumi talked about the company's successes this year, including winning several gaming awards with the new IP metaphor: ReFantazio, made by the team behind the Persona series.
But it hasn't all been positive for the company, with job cuts in March and Football Manager 2025 being postponed until next year.
“It was a difficult decision,” he said of the budget cuts that cost 240 people their jobs.
“But when you reset the initiative, you have to make this difficult decision.”
And he said Football Manager was delayed due to a “quality issue”.
“I mean, financially, maybe offering the game at an early stage may be the best choice.
“But we decided to maintain the level of quality, to maintain this discipline.”
And he also talked about how Sega's year has been going outside of gaming, with several film and TV adaptations capped off by the release of the third Sonic the Hedgehog movie on Saturday.
“I just saw the movie, it's so fun. It would be nice if this kind of excitement continues.”
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Jim Carrey (right) returns to Sonic 3 as the villainous Dr. Robotnik
