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Sega is considering a Netflix-like game subscription service


Sega Sonic, a blue cartoon hedgehog mascot, runs towards the viewer. Next to him is an older version of Sonic, as well as Shadow, a black hedgehog character.Sega

Sonic x Shadow Generations sold over 1 million copies in one day when it launched in October

Sega is considering launching its own video game subscription service similar to Netflix, which 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, in which gamers pay a monthly fee to access a number of titles, rather than owning them all at once.

Sega president Shuji Utsumi told the BBC that such subscription products are “very interesting” and his firm is “evaluating some possibilities”.

“We’re thinking something – and discussing something – we can’t reveal right now,” he said.

Some in the industry expressed concern about the move, however, telling the BBC that gamers could be “spending more money” on multiple subscription services.

Sony and Microsoft aren’t the only ones offering gaming subscriptions – there are countless players in the space now, with competitors like Nintendo, EA and Ubisoft offering their own membership plans.

Getty Images Three Japanese men stand together and smile for a photo at a movie premiere. Behind them is a background with characters from the movie Sonic. Each of the three men is dressed in an outfit featuring Shadow the Hedgehog, who stars in the film. Satomi and Utsumi have Shadow on their t-shirts as well as lapel pins, and Iizuki has a Shadow necklace.Getty Images

Shuji Utsumi (right) attends the Hollywood premiere of Sonic 3 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 depends on the features and games available. For example, Xbox Game Pass prices range from £6.99 to £14.99 per month and PlayStation Plus from £6.99 to £13.49 per month.

Therefore, it would make financial sense for Sega to have the people who play its games pay the subscription fee instead of its competitors.

This may also be attractive to people who mainly want to play Sega games, but for everyone else it may result in higher costs.

Rachael Howie, who streams herself in-game on Twitch, where her fans know her as DontRachQuit, said she’s “excited and anxious” about yet another subscription service

“We already have so many subscriptions that it’s very difficult for us to justify signing up for a new one,” she told the BBC.

“I think 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, director of production at British developer No More Robots, agreed.

“As someone whose first console was a Sega Mega Drive, I’d love to see Sega thrive more than anything, and this seems like a step in the modern direction,” she said.

But she wondered if Sega had actually created a competing subscription service, or if that would result in their games being removed from other services.

“If that’s the case, it could mean that consumers are shelling out more money by owning multiple subscription services,” she said.

The return of Sega

Shuji Utsumi spoke to the BBC ahead of Sonic 3’s 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 told me seemed to suggest that the firm that dominated gaming in the 1990s with competition between Sonic the Hedgehog and Nintendo’s Super Mario might have lost its way.

“I want to make Sega really great again,” he said.

He said that Sega was focusing too much on domestic success in Japan and needed to reinvent itself on the world stage, which would mean expanding its base.

“Sega is kind of losing credibility,” he said.

“But why? Sega has a great RPG group, Sega has amazing IPs, Sega is a really well-known brand.

“So I said, hey, now’s not the time to defend — it’s time to attack.”

He said the company was too concerned with cost control when he took over and he wants to “bring a rock ‘n’ roll mentality to the game.”

When I told him it sounded familiar—Sega marketing in the ’90s often tried to position Sonic the Hedgehog as a cool alternative to Mario—he agreed.

Getty Images A man playing Sonic the Hedgehog on the Mega DriveGetty Images

In the 1990s, there was a famous rivalry between Sonic and Mario that greatly increased the sales of Sega’s Mega Drive and Nintendo’s SNES

He said the firm now just has to “make a great game” in the series.

“The next game is going to be pretty challenging, pretty exciting that we’re working on,” he said.

But he wouldn’t reveal whether Sega is considering continuing the much-loved Sonic Adventure series.

“Sonic Adventure changed the game of Sonic,” he said.

“When we release it, it has to be good, it has to be impressive – we have to meet or even exceed people’s expectations, so it takes a while.”

Part of the series that fans have been clamoring for a return is Sad Chao, the much-loved virtual pet synonymous with Sonic Adventure.

Mr. Utsumi said that “we’ve talked about it,” but did not elaborate, except that he could not “say too much about it.”

The future of Sega

Mr. Utsumi spoke unexpectedly about the firm’s successes this year, including winning several gaming awards with new IP Metaphor: ReFantazio, created by the team behind the Persona series.

But it wasn’t all positive for the firm, with job cuts in March and Football Manager 2025 being pushed back to next year.

“It was a tough decision,” he said of the cuts 240 people lost their jobs.

“But when you drop the initiative, you have to make that hard decision.”

And he said Football Manager was delayed due to “quality issues”.

“I mean, from a financial point of view, maybe delivering the game at an early stage might be the best choice.

“But we’re determined to maintain that level of quality — to maintain that discipline.”

And he also talked about how Sega’s year has been outside of gaming, with several film and TV adaptations culminating in the release of the third Sonic the Hedgehog movie on Saturday.

“I just saw the movie – it’s so much fun. It would be nice if the excitement continued.”

Getty Images A photo taken at the film's premiere shows Jim Carrey standing next to a man in a giant furry blue Sonic the Hedgehog suit.Getty Images

Jim Carrey (right) returns in Sonic 3 as the villain Dr. Robotnik



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