Sega considering Netflix-like game subscription service

Sega is considering launching its own Netflix-like subscription service for video games, a move that will allow for 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 – which see players pay monthly to access various titles rather than owning them.

Sega president Shuji Utsumi told the BBC that the subscription was “extremely exciting”, and that his company was “exploring opportunities”.

“We’re thinking about something – I’m discussing something – we can’t reveal it at this point,” he said.

Some in the industry have expressed concern over the move, but told the BBC that they could see players “pulling out a lot of money” from multiple subscriptions.

It’s not just Sony and Microsoft that offer game subscriptions – there are now countless players in the space, with players such as Nintendo, EA and Ubisoft all offering their own membership plans.

Currently, a variety of Sega games are available on a variety of streaming platforms.

The fees that these services pay individually vary depending on the features and games available. For example, Xbox Game Pass prices range from £6.99 to £14.99 per month, while PlayStation Plus prices range from £6.99 to £13.49 per month.

So it would make sense to Sega for people playing its titles to pay a subscription instead of its competitors.

It might also be attractive to people who like to play Sega games – but for everyone else it might come at a steep price.

Rachel Howie is a self-proclaimed gamer on Twitch, known as DontRachQuit to her fans, and said she’s “excited and sad” about another subscription service.

“We have so many registrations already that it is difficult for us to get new registrations,” he told the BBC.

“I think SEGA will have a dedicated audience that will benefit from this, but will casual gamers choose this over Game Pass?”

And Sophie Smart, Production Director at UK No More Robots, agreed.

“As someone whose first console was the Sega Mega Drive, what I would love more than anything is to see Sega succeed and this feels like a step forward,” he said.

But he wondered if Sega had created a competing subscription service that would result in their games being removed from other content.

“If that’s the case, it could mean consumers are spending more money with more subscription services,” he said.

Shuji Utsumi spoke to the BBC ahead of the film Sonic 3 on Saturday, after a year in which he oversaw the launch of Metaphor: ReFantazio, Like Dragon: Infinite Wealth, and the new Sonic the Hedgehog game.

Our conversation began in an unexpected way.

The first thing that Mr Utsumi said to me seems to indicate that the company, which dominated gaming in the 1990s with the rivalry between Sonic the Hedgehog and Nintendo’s Super Mario, may have lost.

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

He added that Sega has been focusing on domestic success in Japan, and needs to reposition itself globally, which means expanding beyond its core.

“Sega has been losing faith in one way or another,” he said.

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

“So I was like, Hey, this is not the time to be defensive — it’s really offensive.”

He also said that the company was very concerned about financial control when he took over, and that he wanted to “bring a rock and roll mentality” to the game.

When I told him what made perfect sense – Sega’s commercials in the 90s often tried to position Sonic the Hedgehog as a good alternative to Mario – he agreed.

He said the company now needs to “make better games” for the series.

“The next one is going to be a tough, very exciting game that we’re planning,” he said.

But he wouldn’t reveal if Sega is considering a sequel to the much-loved Sonic Adventure series.

“Sonic Adventure was like a game changer for Sonic,” he said.

“When we release it, it has to be good, it has to be spectacular – we have to meet or exceed people’s expectations, so it takes time.”

One of the things that fans have been clamoring for the return of is Chao Garden – the much-loved pet equivalent of Sonic Adventure.

Mr Utsumi said “we’ve been talking about it” – but wouldn’t elaborate, only that he couldn’t “say much about it”.

Utsumi unsurprisingly talked about the company’s success this year, which has included winning several gaming awards and the new IP Metaphor: ReFantazio, developed by the team behind the Persona series.

But it wasn’t good for the company, with job cuts in March, and Football Manager 2025 being delayed until next year.

“It was a tough decision,” he said of the cut which resulted in 240 layoffs.

“But when you start over, you have to make a tough decision.”

And he said Football Manager has been delayed for “good news”.

“I mean, financially, maybe giving the game away at a young age would be a better decision.

“But we decided to have a higher standard – to keep the tradition.”

And he also talked about how Sega’s year has gone outside of gaming, with a series of film and television adaptations that were kicked off with the third Sonic the Hedgehog movie released on Saturday.

“I just saw the movie – it’s really fun. It would be great if this kind of fun continues.”