Sega considers launching Netflix-like game subscription service

Sega is considering launching its own Netflix-like video game subscription service, a move that would accelerate gaming's transition to streaming.

There are already a number of similar services on the market – such as Xbox Game Pass and PlayStation Plus – where gamers pay a monthly fee to access a range of games, rather than owning them outright.

Sega president Shuji Uchimi told the BBC that such subscription products were “very interesting” and that his company was “evaluating some opportunities”.

“We're thinking about some things and discussing some things, but we can't disclose them right now,” he said.

Some industry insiders have expressed concerns about the move, but told the BBC that gamers are likely to “spend more money” on multiple subscription services.

It's not just Sony and Microsoft offering gaming subscriptions – there are now countless players in the space, with rivals like Nintendo, EA and Ubisoft all offering their own membership programs.

Various Sega games are currently available through a variety of streaming services.

Individual fees for these services vary depending on the features and games offered. 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 more sense for Sega, for those who play Sega games, to pay a subscription fee to Sega instead of paying a subscription fee to one of its competitors.

It might also be attractive to those who primarily want to play Sega games, but for others it might result in a higher cost.

Rachel Howie, who fans call DontRachQuit, streams herself playing the game on Twitch and says she's “excited and worried” about another subscription service

She told the BBC: “We already have so many subscriptions that we find it difficult to justify new subscriptions.”

“I think Sega will definitely have a core of loyal viewers who will benefit from this, but will the average gamer choose this over something like Game Pass?”

Sophie Smart, production director at British developer No More Robots, agrees.

“As someone whose first console was the Sega Mega Drive, what I love most is seeing Sega flourish and it feels like a step in a modern direction,” she said.

But she wonders if Sega does create a competing subscription service, and whether that could lead to their games being removed from other services.

“If so, it could mean consumers will spend more money on having multiple subscription services,” she said.

Shuji Utsumi, who previously worked on the releases of Metaphor: ReFantazio, Yakuza: Infinite Fortune and the latest game Sonic the Hedgehog, spoke to the BBC ahead of Saturday's premiere of Sonic 3.

Our conversation started in an unexpected way.

Mr. Utsumi's first words to me seemed to suggest that the company that dominated the gaming industry in the 1990s with its battles with Sonic the Hedgehog and Nintendo's Super Mario Bros. might have lost its way.

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

He said Sega was too focused on domestic success in Japan and needed to regain its footing on the global stage, which meant looking beyond its foundations.

“Sega has lost faith to a certain extent,” he said.

“But why? Sega has a great RPG team, Sega has amazing IP, Sega is a very well-known brand.

“So I thought, hey, now's not the time to play defense, it's time to play offense.”

He said the company was too concerned with controlling costs when he took over and that he wanted to “bring a rock and roll mentality” to the game.

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

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

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

But he wouldn't say whether Sega is considering a follow-up to the beloved Sonic Adventure series.

“Sonic Adventure is a game-changer for Sonic,” he said.

“When we release it, it should be good, it should be impressive – we need to meet and even exceed people's expectations, so that's going to take some time.”

One part of the series that fans have been eager to see return is Tide Garden – the beloved virtual pet that is synonymous with Sonic Adventure.

Mr Utsumi said “we have been discussing this issue” but would not give further details, saying only that he could not “say too much about it”.

Mr. Utsumi unsurprisingly spoke of the company's success this year, which includes winning multiple gaming awards for Metaphor: ReFantazio, a new IP from the team behind the Persona series.

But it's not all positive for the company, with layoffs in March and Football Manager 2025 being delayed until next year.

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

“But when you restart your program, you have to make tough decisions.”

He also said Football Manager has been delayed due to “quality issues”.

“I mean, from a financial standpoint, maybe it might be better to make the game available sooner rather than later.

“But we decided to maintain the quality level – to maintain discipline.”

He also talked about Sega's year outside of games, with several film and TV adaptations coming to an end with the release of the third Sonic the Hedgehog installment on Saturday.

“I just saw the movie – it was very interesting. It would be great if the excitement lasts.”