Sega is shifting gears with a new business strategy, opting to release fewer new games in the next fiscal year while doubling down on its biggest franchises—Sonic the Hedgehog, Persona, and Like a Dragon. The company plans to deepen its investments in these core IPs through hiring and potential acquisitions, ensuring that its most successful studios have the resources they need to thrive.
Over the past year, Sega has launched several major titles, including Super Monkey Ball: Banana Rumble, Metaphor: ReFantazio, Sonic X Shadow Generations, and Like a Dragon: Pirate Yakuza in Hawaii. However, moving forward, the company expects to release fewer full-priced games while continuing to generate revenue through repeat sales of existing titles and free-to-play projects. Among Sega’s confirmed upcoming releases are Sonic Racing: CrossWorlds, Shinobi: Art of Vengeance, and Project Century, along with the highly anticipated legacy revivals of Virtua Fighter, Crazy Taxi, Jet Set Radio, Golden Axe, and Streets of Rage.
In a recent earnings Q&A, Sega acknowledged that key studios like Sonic Team, Atlus, and Ryu Ga Gotoku Studio are currently understaffed. To address this, the company is planning a mix of internal hiring and mergers and acquisitions (M&A) to reinforce its development teams. Sega emphasized the importance of Atlus in expanding Japanese IPs internationally while also recognizing the need to strengthen Sonic Team and the Like a Dragon developers.
Sega’s recent financial performance has been strong, with nearly 20 million new game sales in the last nine months alone. This includes at least 2 million copies of Sonic X Shadow Generations and 1 million units of Metaphor: ReFantazio. Additionally, Sega has seen continued success with legacy titles, citing strong repeat sales of Persona 5 Royal, Unicorn Overlord, and classic Sonic the Hedgehog games.
Another significant move on the horizon is Sega’s potential entry into the gaming subscription market. While details remain undisclosed, Sega’s president confirmed that discussions are underway regarding a new subscription-based model.
With a clear focus on its most beloved franchises, Sega appears committed to ensuring the continued growth of Sonic, Persona, and Like a Dragon. This strategy could mean fewer releases overall, but for Sonic the Hedgehog fans, it signals a deeper investment in the franchise’s future.
Stay tuned to Sonic City for more news and updates on Sega’s evolving plans and how they will impact the Sonic series!
Source: FY2025/3 Q3 Major Questions Regarding Financial Results (Summary)
I hope they release addition content in the form of an expansion for Pirate Yakuza in Hawaii.