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21 December 2024

Sega Eyes Netflix-Style Gaming Subscription Service

Plans to consolidate titles spark industry concerns over rising subscription costs for gamers.

Sega is contemplating the launch of its own Netflix-style subscription service for video games, signaling the company's intentions to adapt to the modern gaming market. Speaking to the BBC, the recently appointed Sega president and COO, Shuji Utsumi, expressed interest in subscription models akin to those offered by Microsoft and Sony, which allow gamers to access multiple titles for a monthly fee rather than owning them outright.

This potential development arrives at a time when the gaming industry is increasingly moving toward streaming and subscription services. Players are already accustomed to platforms like Xbox Game Pass and PlayStation Plus, which provide access to expansive libraries of games for regular payments. Utsumi noted, "Subscription products are very interesting," and hinted at the company's evaluation of its options, stating, "We're thinking something - and discussing something - we cannot disclose right now." This indicates Sega's serious consideration of entering the subscription space, but the idea remains at an early stage.

Recent actions by Sega include the delisting of several classic titles across platforms, including the Sega Genesis Classics collection, Sonic the Fighters, and Virtua Fighter 2. This withdrawal from multiple services raises speculation about the possibility of consolidations. Industry insiders suggest this could signal Sega's intent to offer its games exclusively through its own platform, thereby enhancing profit margins. Utsumi’s remarks have echoed concerns shared by other industry experts, who caution about the risk of gamers spending more on multiple subscriptions as Sega joins the fray.

Rachel Howie, a gaming streamer known as DontRachQuit, shared her mixed feelings about the prospect of yet another subscription service. "We have so many subscriptions already," Howie noted, "that we find it very difficult to justify signing up for a new one." She recognizes the core audience of Sega fans who might benefit but questions whether casual gamers would choose this service over established competitors.

Echoing similar sentiments was Sophie Smart, Production Director at UK developer No More Robots, who highlighted her nostalgic connection to Sega. "What I'd love more than anything is to see Sega thriving," she said, but expressed concern about potential game removals from current platforms leading to increased costs for consumers across multiple services.

Utsumi, reflecting on Sega's legacy, emphasized the need for the company to regain its global footing. "Sega has been somehow losing confidence," he remarked, making clear his desire to pivot from focusing predominantly on the Japanese market to re-establishing the brand internationally. This ambition correlates with the company's broad plan to leverage its heritage, including redefining classic franchises such as Sonic the Hedgehog.

The Sega president also discussed recent project launches including "Metaphor: ReFantazio" and the upcoming Sonic 3 movie, calling attention to the successes amid challenges faced this year, such as significant job cuts and project delays. Utsumi recalled the necessity of these tough decisions, particularly noting the reduction of 240 employees as part of restructuring efforts.

The notion of revamping its popular titles was reinforced as Utsumi mentioned plans to make future Sonic games genuinely

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