Sega is considering launching its own Netflix-like subscription service for video games, a move which would accelerate gaming’s transition towards streaming.
There are already a number of similar services on the market – such as Xbox Game Pass and PlayStation Plus – which see gamers pay a monthly fee for access to a range of titles rather than owning them outright.
Sega’s president Shuji Utsumi told the BBC such subscription products were “very interesting”, and his firm was “evaluating some opportunities”.
“We’re thinking something – and discussing something – we cannot disclose right now,” he said.
Some in the industry have expressed concern about the move however telling the BBC it could see gamers “shelling out more money” on multiple subscription services.
It is not just Sony and Microsoft who offer game subscriptions – there are now countless players in the space, with rivals such as Nintendo, EA and Ubisoft all offering their own membership plans.
Currently, various Sega games are available across multiple streaming services.
The amount these services individually charge vary depending on the features and games made available. For example, Xbox Game Pass prices range from £6.99 to £14.99 a month, while PlayStation Plus ranges from £6.99 to £13.49 a month.
So it would make financial sense for Sega for people who are playing its titles to pay it subscription fees rather its rivals.
It could also be attractive for people who mostly want to play Sega games – but for everyone else it could result in higher costs.
Rachel Howie streams herself playing games on Twitch, where she is known as DontRachQuit to her fans, and said she was “excited and worried” about another subscription service
“We have so many subscriptions already that we find it very difficult to justify signing up for a new one,” she told the BBC.
“I think that SEGA will definitely have a core dedicated audience that will benefit from this, but will the average gamer choose this over something like Game Pass?”
And Sophie Smart, Production Director at UK developer No More Robots, agreed.
“As someone whose first console was the Sega Mega Drive, what I’d love more than anything is to see Sega thriving and this feels like a step in a modern direction,” she said.
But she wondered if Sega did create a rival subscription service if this would lead to their games being removed from other services.
“If so, it could mean that consumers are shelling out more money across owning multiple subscription services,” she said.
Bringing Sega back
Shuji Utsumi spoke to the BBC ahead of the premiere of the film Sonic 3 on Saturday, after 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 in an unexpected way.
The very first thing Mr Utsumi said to me seemed to suggest that the firm, 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 shiny again,” he said.
He said Sega had been putting too much focus on domestic success in Japan, and needed to re-establish itself on a global stage, which would mean expanding past its base.
“Sega has been somehow losing confidence,” he said.
“But why? Sega has a great RPG group, Sega has amazing IPs, Sega is a really well-known brand.
“So I was like, hey, now is not the time to be defensive – but more offensive.”
He said the company was too concerned about controlling costs when he took over, and he wants to “bring a rock and roll mentality” to gaming.
When I told him that sounded familiar – Sega’s marketing in the 90s often tried to position Sonic the Hedgehog as the cool alternative to Mario – he agreed.
He said the firm now simply must “make a great game” in the series.
“The next one is going to be a quite challenging, quite exciting game that we are working on,” he said.
But he would not divulge whether Sega was considering a follow up to the much-loved 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 need to meet or even exceed people’s expectations, so it takes some time.”
Part of the series which fans have been clamouring to see return is the Chao Garden – a much-loved virtual pet synonymous with Sonic Adventure.
Mr Utsumi said “we’ve been talking about it” – but would not go into further detail, only that he could not “say too much about it”.
Sega’s future
Mr Utsumi unsurprisingly talked up the firm’s successes this year, which have included winning multiple gaming awards with new IP Metaphor: ReFantazio, made by the team behind the Persona series.
But it hasn’t all been positive for the firm, with job cuts in March, and Football Manager 2025 being delayed to next year.
“It was a hard decision,” he said of the cuts which saw 240 people lose their jobs.
“But when you reset the initiative, you have to make that hard decision.”
And he said Football Manager had been delayed over “a quality issue”.
“I mean, financially, maybe providing the game at an early stage can be the better choice.
“But we decided to keep having the quality level – to keep that discipline.”
And he also spoke of how Sega’s year has gone outside of gaming, with several film and television adaptations being capped off with the third Sonic the Hedgehog movie releasing on Saturday.
“I just saw the movie – it’s so much fun. It’d be nice if that kind of excitement goes on.”
