SEGA's Chief Operating Officer, Shuji Utsumi, discussed the company's business strategy with Eurogamer, highlighting a vision based on three main pillars: shifting focus from the Japanese market, embracing a transmedia approach, and reinvesting in forgotten franchises.
Sonic X Shadow Generations
Focus on the Global Market
SEGA is gradually reorienting towards the international market. The reason is straightforward: the arcade game segment, once a massive revenue generator, is declining even in Japan. The company recognizes that the substantial budgets necessary for game development cannot be recouped solely in its home region.
"The Japanese market has become too small for big games, so my primary requirement for our studios is to pursue global opportunities. SEGA has everything it needs — a well-known name, famous IPs, infrastructure, and financial advantages (not to forget the weak yen) — to firmly establish itself on the global stage," Utsumi explained.
He emphasized that SEGA's portfolio must maintain a balance — their games will continue to embody the "Japanese spirit" while also aiming to adapt to a broad Western audience.
Supporting the Transmedia Strategy
Utsumi's second point is that the company will continue to push its transmedia strategy. For SEGA, this means producing a wide range of related content featuring well-known characters, including films, animation, branded merchandise, and more.
However, as Utsumi noted, quality games are the foundation of all these promotional efforts. Without them, other forms of marketing lose their effectiveness.
Notably, in 2024, the company's portfolio was enriched with two successful new IPs — Metaphor: ReFantazio and Unicorn Overlord, with the former selling over a million copies within the first day of its release.
Moreover, long-standing franchises are keeping pace. For instance, Like a Dragon: Infinite Wealth and Persona 3 Reload both surpassed the million-copy mark in their first week. The new Sonic project — Sonic X Shadow Generations — achieved this milestone on its release day.
The top manager emphasized that Sonic X Shadow Generations is a crucial part of the ongoing expansion of the iconic hedgehog into pop culture. The campaign also includes: the film "Sonic 3 in Cinema," launching in theaters next week, its spin-off mini-series "Knuckles" on Paramount+, and the upcoming mobile game Sonic Rumble.
Rebooting Classic IPs
Finally, according to Utsumi, SEGA is lacking the former "style, coolness, and a touch of boldness." Therefore, the company is reviving past projects that haven't been heard from in a while.
Among these are the previously announced reboots of Crazy Taxi, Jet Set Radio, Shinobi, and Golden Axe. Additionally, at The Game Awards 2024, a new title from the Virtua Fighter universe was unveiled.
"It's like mixing rock 'n' roll with hip-hop," Utsumi poetically described the direction SEGA is heading.