Sega to spend billions on super games and acquisitions
It’s already formed a new deal with Microsoft to make super games and now Sega is talking acquisitions as well.
While it’s still not entirely clear what a ‘super game’ is, it’s something Sega is apparently now committed to making. The company recently announced a new partnership with Microsoft to build several super games over the next five or so years.
As if that wasn’t enough, the most recent fiscal year results from parent company Sega Sammy show that its looking to invest approximately ¥100 billion (over £650 million) into not just the super game initiative but also acquisitions.
In fact, investment is a key part of Sega’s long-term strategy, with a collective ¥250 billion (about £1.6 billion) set aside to be spent on domestic and overseas investments, acquiring new franchises, creating new businesses, and strengthening its own resources.
President and COO Yukio Sugino says: ‘The way people interact with games is becoming more diverse and the ecosystem is growing exponentially. In this context, Sega wants to go beyond the boundaries of conventional games and take on the challenge of creating super games that excite the gaming community, which is a web of diverse relationships.
‘Naturally, we project that the scale of investment in the development of such super games will be sizable. We will need to incorporate new technologies and trends. To this end, we will have to invest from the perspective of developing the pipeline and shoring up our value chains.’
He also brings up Atlus as an example of how beneficial acquisitions can be, as well as how localisation efforts have helped franchises like Yakuza and Hatsune Miku become more popular overseas.
‘I think back to when we acquired and consolidated Atlus. This brought us two major benefits. One was the highly appealing, world-class IPs Atlus had developed in the role-playing game genre. The other was the solid localisation capabilities of the U.S. based site. Drawing on these localisation capabilities, very Japanese IPs like Yakuza and Hatsune Miku have been translated using expressions that really resonate with local users, which has enhanced game quality.
‘The outcome of this is clearly evident in the rising Metacritic scores, which in turn is leading to growing sales in overseas markets. These kinds of acquisitions that enhance our functionality will definitely be a major strength in the long run, and we will continue to proactively explore investments from this point of view.’
All of this will sound very peculiar to long-time Sega fans, who are not used to the company having anything like this amount of money to throw around – or any interest in making games beyond Sonic The Hedgehog, Yakuza, and their PC franchises. Especially given how badly it usually struggles with the former.
What it means by the term super game, and exactly how involved Microsoft is, remains to be seen, with no indication of whether any of the games will be based on existing franchises or if they’ll be at all reminiscent of Sega’s classic library of titles.
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