Recent changes

[stub]

Empower the Gamers

<cite>Slogan[cite_web url="https://www.sega.co.jp/en/index.html" access-date="14 May 2026" title="SEGA Corporation"]</cite></blockquote>

SEGA

<figure class="wp-block-image size-full"><img src="https://sonic-city.net/wp-content/uploads/2026/05/SEGA-logo.svg" alt="" class="wp-image-57785"/><figcaption class="wp-element-caption">The current SEGA logo in the West</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://sonic-city.net/wp-content/uploads/2026/05/Osaki_Garden_Tower-1024x819.jpg" alt="" class="wp-image-57790"/><figcaption class="wp-element-caption">SEGA Headquarters in Shinagawa-ku, Tokyo</figcaption></figure>

</div>

Overview

Native name

株式会社セガ

Romanized name

Kabushiki-gaisha Sega

Formerly

<li>Nihon Goraku Bussan (1960–1965)</li>

<li>Sega Enterprises, Ltd. (1965–2000)</li>

<li>Sega Corporation (2000–2015)</li>

<li>Sega Games Co., Ltd. (2015–2020)</li>

</ul>

Historical Overview

Founded

1946-09-01[cite_web archive-url="https://archive.fo/h3dCN" url="https://i.imgur.com/r0STMda.png" website="Imgur" title="Notice of Co-Partnership"][fileref file="TheHonoluluAdvertiser US 1946-12-28 page 12.png"] [c]as Service Games[/c]

Founder(s)

<li>Marty Bromely</li>

<li>Irving Bromberg</li>

<li>James Humpert</li>

</ul>

Business Description

Company type

Subsidiary

Industry

Video games

Predecessor

[[Service Games of Japan]]

Headquarters

Nishi-Shinagawa, Shinagawa-ku, Tokyo, Japan

Area served

Worldwide

Key people

<li>Haruki Satomi [c]chairman and CEO[/c]</li>

<li>Shuji Utsumi [c]president and COO[/c]</li>

<li>Yukio Sugino [ja] [c]vice president and COO[/c]</li>

</ul>

Products

<li>Games</li>

<li>Video game consoles</li>

<li>Mobile games</li>

<li>Franchises</li>

</ul>

Revenue

[increase] [yen]247.7 billion (2020)

Operating income

[increase] [yen]14.8 billion (2020)

Number of employees

2,922 [c]March 31, 2026[cite_web url="https://www.sega.co.jp/en/company/outline/index.html" title="Company Outline" website="Sega" access-date="May 16, 2026"][/c]

Company Alignments

Parent

<li>Gulf and Western [c]1969 - 1981[/c]</li>

<li>Paramount Pictures [c]1981-1984[cite_news date="1982-07-01" title="VIDEO GAMES TO TO HOLLYWOOD (Published 1982)" url="https://www.nytimes.com/1982/07/01/business/video-games-to-to-hollywood.html" archive-url="http://web.archive.org/web/20250824053755/https://www.nytimes.com/1982/07/01/business/video-games-to-to-hollywood.html" archive-date="2025-08-24" access-date="2026-05-14" language="en"][/c]</li>

<li>CSK Corporation [c]1984 - 2004[/c]</li>

<li>[[Sega Sammy Holdings]] [c]2004 - present[/c]</li>

</ul>

Division(s)

<li>Division 1 (Ryu Ga Gotoku Studio)</li>

<li>Division 2 ([[Sonic Team]])</li>

<li>[[Sega_development_studios#2021_-_current|Division 3]]</li>

<li>[[Sega_development_studios#2021_-_current|Division 4]]</li>

<li>[[Hardlight]]</li>

<li>[[Sega Technical Institute]] [c]formerly[/c]</li>

</ul>

Subsidiary(ies)

<li>Atlus</li>

<li>Sega Sapporo Studio</li>

<li>[[TMS Entertainment]]</li>

<li>[[Marza Animation Planet]]</li>

<li>Sega Play Heart</li>

<li>Sega of America</li>

<li>Sega Europe</li>

<li>[[Rovio Entertainment]]</li>

</ul>

Miscellaneous

Website

<li><a href="https://www.sega.co.jp/en/index.html" target="_blank" rel="noreferrer noopener">https://www.sega.co.jp/en/index.html</a> [c]Japanese[/c]</li>

<li><a href="https://www.sega.com/">https://www.sega.com/</a> [c]English[/c]</li>

<li><a href="https://asia.sega.com/en/">https://asia.sega.com/en/</a> [c]Asian[/c]</li>

</ul>

Footnotes / references

[cite_web url="https://www.segasammy.co.jp/english/pdf/release/202003_4q_hosoku_20200513_final_e_.pdf" title="Sega Sammy Holdings Fiscal Year 2020 Full Results Appendix" publisher="[[Sega Sammy Holdings]]" date="May 13, 2020" access-date="May 15, 2026" archive-url="https://web.archive.org/web/20200515113342/https://www.segasammy.co.jp/english/pdf/release/202003_4q_hosoku_20200513_final_e_.pdf" archive-date="May 15, 2020"][cite_web url="https://www.segasammy.co.jp/english/pdf/release/20200228_jinji_e_final.pdf" title="Notice of Changes of Directors and Executive Officers at SEGA SAMMY HOLDINGS INC. and its Major Subsidiaries" publisher="[[Sega Sammy Holdings]]" date="February 28, 2020" access-date="May 17, 2026" archive-date="June 3, 2020" archive-url="https://web.archive.org/web/20200603162255/https://www.segasammy.co.jp/english/pdf/release/20200228_jinji_e_final.pdf" url-status="dead"]

</aside>

[nihongo]Sega Corporation||株式会社セガ||Kabushiki-gaisha Sega||stylized as SEGA[/nihongo] is a Japanese video game and entertainment company headquartered in Tokyo, Japan. A subsidiary of [[Sega Sammy Holdings]], the company develops, publishes, and owns several major game franchises, including [[Sonic the Hedgehog series|Sonic the Hedgehog]], [[Phantasy Star]], [[Puyo Puyo]], [[Super Monkey Ball]], [[Virtua Fighter]], [[Sakura Wars]], [[Yakuza]], [[Persona]], [[Total War]], [[Football Manager]], and [[Angry Birds]].[cite_news date="2019-12-11" title="How Angry Birds broke the limits for mobile games" url="https://www.gamesindustry.biz/how-angry-birds-broke-the-limits-for-mobile-games" archive-url="https://web.archive.org/web/20221016201330/https://www.gamesindustry.biz/how-angry-birds-broke-the-limits-for-mobile-games" archive-date="2022-10-16" access-date="2026-05-28" work="GamesIndustry.biz" language="en"][cite_web title="『スーパーモンキーボール』が500万本も売れているのが信じられないので“バナナランブル”Pに理由を訊く。失礼だという自覚はあるけれど。 | ゲーム・エンタメ最新情報のファミ通.com" url="https://www.famitsu.com/article/202407/11761" access-date="2026-05-28" website="ファミ通.com" language="ja"][ref]<a href="https://www.segasammy.co.jp/cms/wp-content/uploads/pdf/en/ir/ir_2021_web_all_en.pdf" target="_blank" rel="noreferrer noopener">https://www.segasammy.co.jp/cms/wp-content/uploads/pdf/en/ir/ir_2021_web_all_en.pdf</a>[/ref] From 1983 until 2001, Sega also produced its own line of home video game consoles.

Sega traces its origins to coin-operated amusement businesses connected to Service Games and Rosen Enterprises. Service Games was originally founded to provide amusement machines for American military bases, while Rosen Enterprises imported coin-operated machines into Japan. The two lines of business came together in 1965, forming Sega Enterprises, Ltd. Sega achieved early arcade success with titles such as [[Periscope]], later entered the home console market with the [[SG-1000]] and [[Master System]], and became one of the most prominent video game companies of the late twentieth century.

The company reached its greatest console success with the [[Sega Mega Drive]], known as the Sega Genesis in North America. Following the release of [[Sonic the Hedgehog]] in 1991, Sonic became Sega's mascot and one of the most recognizable characters in video game history. The success of Sonic and the Genesis helped Sega become a major competitor to [[Nintendo]] during the early 1990s, particularly in North America. Sega later released the [[Sega CD]], [[Sega 32X]], [[Sega Saturn]], and [[Dreamcast]], but declining hardware sales and financial pressure led the company to discontinue console manufacturing and focus on third-party software development.

Sega remains closely associated with arcade games, console and PC software, mobile titles, amusement machines, and entertainment venues. Its international branches include [[Sega of America]] and [[Sega Europe]], while its development structure includes internal studios and major subsidiaries such as [[Atlus]], [[Creative Assembly]], [[Sports Interactive]], [[Hardlight]], [[Two Point Studios]], and [[Rovio Entertainment]]. The company's most prominent franchise, Sonic the Hedgehog, continues to serve as a central part of Sega's global identity.

<h2 class="wp-block-heading">History</h2>

[main title="History of Sega"]

<h3 class="wp-block-heading">Origins and arcade success</h3>

Sega's origins trace back to coin-operated amusement businesses established for American military markets. In May 1940, Martin Bromley, Irving Bromberg and James Humpert formed Standard Games in [[Honolulu]], Hawaii, to provide amusement machines, including slot machines, for military bases. After World War II, the founders sold Standard Games in 1945 and established Service Games the following year, with the name reflecting the company's military customer base.[cite_book last="Smith" first="Alexander" title="They Create Worlds: The Story of the People and Companies That Shaped the Video Game Industry, Vol. I: 1971–1982" publisher="[[CRC Press]]" year="2019" isbn="978-0-429-75261-2" pages="105"]

After slot machines were outlawed in United States territories in 1952, Bromley sent Richard Stewart and Ray LeMaire to Tokyo to establish Service Games of Japan, which supplied coin-operated slot machines to American bases in Japan.[ref name="IGN History of Sega"][cite_web url="https://ign.com/articles/2009/04/21/ign-presents-the-history-of-sega" title="IGN Presents the History of SEGA" last1="Fahs" first1="Travis" date="April 21, 2009" website="[[IGN]]" archive-url="https://web.archive.org/web/20120824130011/http://www.ign.com/articles/2009/04/21/ign-presents-the-history-of-sega" archive-date="August 24, 2012" url-status="dead" access-date="May 29, 2026"][/ref][cite_web url="https://kotaku.com/meet-the-four-americans-who-built-sega-5788468" title="Meet the four Americans who built Sega" first="Luke" last="Plunkett" work="[[Kotaku]]" date="April 4, 2011" access-date="August 1, 2015" archive-url="https://web.archive.org/web/20150726090220/http://kotaku.com/5788468/meet-the-four-americans-who-built-sega" archive-date="July 26, 2015" url-status="live"] The name "Sega", an abbreviation of "Service Games", was first used in 1954 on the Diamond Star slot machine.[ref name="Horowitz 2018 p3-6"][cite_book title="The Sega Arcade Revolution, A History in 62 Games" last="Horowitz" first="Ken" publisher="[[McFarland & Company]]" year="2018" isbn="978-1-4766-3196-7" ref="refHorowitz2018" pages="3–6"][/ref]

Service Games of Japan was dissolved on May 31, 1960, after investigations by the United States government into business practices connected to the company. On June 3, Bromley established Nihon Goraku Bussan and Nihon Kikai Seizō to take over its business activities. The companies purchased the assets of Service Games of Japan, with Kikai Seizō manufacturing slot machines under the Sega, Inc. name and Goraku Bussan, doing business as Utamatic, Inc., distributing and operating coin-operated machines such as jukeboxes.[ref name="Horowitz 2018 p3-6" /][cite_magazine date="September 5, 1960" title="Sega and Utamatic Purchase Assets of Service Games" magazine="[[Billboard]]" volume="72" issue="34" page="71"][cite_magazine date="September 3, 1960" title="Service Games Inc. Bought By Sega and Uta Matic" magazine="[[Cashbox]]" volume="21" issue="51" page="52"] The two companies merged in 1964, retaining the Nihon Goraku Bussan name.[ref name="Horowitz 2018 p3-6" /]

A separate line of Sega's history began with [[David Rosen]], an American former United States Air Force officer stationed in Japan, who founded Rosen Enterprises in Tokyo in 1954. The company began as a photo booth business before importing coin-operated games into Japan. In 1965, Nihon Goraku Bussan acquired Rosen Enterprises, forming [nihongo]Sega Enterprises, Ltd.||株式会社セガ・エンタープライゼズ||Kabushiki gaisha Sega Entapuraizezu[/nihongo]. Rosen became CEO and managing director, Stewart became president, and LeMaire became director of planning. Sega soon moved away from leasing machines to military bases and focused instead on coin-operated amusement machines.[ref name="IGN History of Sega" /][ref][[#refHorowitz2018|Horowitz 2018]], p. 7[/ref]

Because many of Sega's imported machines required maintenance, the company began manufacturing replacement parts, which helped lead it toward original game development.[ref name="Sega Arcade History p20-23"][cite_book title="Sega Arcade History" publisher="[[Enterbrain]]" year="2002" isbn="978-4-7577-0790-0" pages="20–23" language="ja"][/ref] Sega's first arcade electro-mechanical game was the submarine simulator '[[Periscope]], released worldwide in the late 1960s. The game became successful in Japan and was exported to Europe and the United States, where it helped standardize the 25-cent-per-play arcade price. Its success encouraged Sega to continue producing original arcade titles.[ref][[#refHorowitz2018|Horowitz 2018]], pp. 10–11[/ref][ref name="Smith"][cite_book last1="Smith" first1="Alexander" title="They Create Worlds: The Story of the People and Companies That Shaped the Video Game Industry, Vol. I: 1971-1982" date="November 19, 2019" publisher="[[CRC Press]]" isbn="978-0-429-75261-2" pages="119–20, 188–91" url="https://books.google.com/books?id=Cxy_DwAAQBAJ&pg=PT119"][/ref]

In 1969, Sega was sold to [[Gulf and Western Industries]], although Rosen remained CEO. Sega released [[Pong-Tron]], its first video-based arcade game, in 1973.[ref name="Horowitz 2018 p14–16"][[#refHorowitz2018|Horowitz 2018]], pp. 14–16[/ref] During the late 1970s, the company benefited from the arcade video game boom, with revenue exceeding US$100 million by 1979. Sega also acquired [[Gremlin Industries]] and Esco Boueki, a coin-operated game distributor owned by [[Hayao Nakayama]], who was placed in a management role in Sega's Japanese operations.[ref][[#refHorowitz2018|Horowitz 2018]], pp. 21–23[/ref] By the early 1980s, Sega was one of the top five arcade game manufacturers in the United States, and its annual revenue reached $214 million.[cite_news last1="Brandt" first1="Richard" last2="Gross" first2="Neil" date="February 20, 1994" title="Sega!" work="[[Businessweek]]" url="http://www.businessweek.com/stories/1994-02-20/sega" url-status="dead" access-date="May 10, 2026" archive-url="https://web.archive.org/web/20131203121725/http://www.businessweek.com/stories/1994-02-20/sega" archive-date="December 3, 2013"] Notable releases from this period included [[Head On]], [[Frogger]], which Sega licensed from [[Konami]], and [[Zaxxon]], one of the earliest arcade games to use isometric graphics.[ref][[#refHorowitz2018|Horowitz 2018]], pp. 24–26[/ref][ref][[#refHorowitz2018|Horowitz 2018]], p. 36[/ref][ref][[#refHorowitz2018|Horowitz 2018]], p. 48[/ref]

<h3 class="wp-block-heading">Entry into the console market, management buyout, and arcade resurgence</h3>

[further]SG-1000||Master System[/further]

Following a downturn in the arcade business in the early 1980s, Gulf and Western sold Sega's North American arcade manufacturing organization and arcade game licensing rights to [[Bally Manufacturing]] in September 1983.[ref name="NYTimes"][cite_news last="Pollack" first="Andrew" date="October 24, 1982" title="What's New In Video Games; Taking the Zing Out of the Arcade Boom" newspaper="[[The New York Times]]" url="https://www.nytimes.com/1982/10/24/business/what-s-new-in-video-games-taking-the-zing-out-of-the-arcade-boom.html" url-status="live" access-date="November 27, 2013" archive-url="https://web.archive.org/web/20131219200336/http://www.nytimes.com/1982/10/24/business/what-s-new-in-video-games-taking-the-zing-out-of-the-arcade-boom.html" archive-date="December 19, 2013"][/ref] Sega's Japanese subsidiary and North American research and development operation were retained by Gulf and Western. With the arcade market in decline, Nakayama pushed Sega to enter the home consumer market in Japan.[ref name="Wired1"][cite_magazine last="Battelle" first="John" date="December 1993" title="The Next Level: Sega's Plans for World Domination" url="https://www.wired.com/wired/archive/1.06/sega_pr.html" url-status="live" magazine="[[Wired]]" archive-url="https://web.archive.org/web/20120502064808/http://www.wired.com/wired/archive/1.06/sega_pr.html" archive-date="May 2, 2012" access-date="May 9, 2026"][/ref]

Sega developed the SC-3000 computer and, after learning that [[Nintendo]] was preparing the [[Family Computer]], created its first home video game console, the [[SG-1000]].[ref name="Retro1632"][cite_magazine last="Marley" first="Scott" date="December 2016" title="SG-1000" magazine="[[Retro Gamer]]" issue="163" pages="56–61"][/ref] The SG-1000 launched in 1983 and sold above Sega's first-year expectations, but it was overshadowed by Nintendo's Famicom, whose third-party software support helped it build a stronger library.[ref name="Retro1632" /]

In 1984, Rosen and Nakayama arranged a management buyout of Sega's Japanese assets with financial backing from [[SCSK|CSK Corporation]]. The assets were purchased for $38 million by investors led by Rosen and Nakayama. [[Isao Okawa]], head of CSK, became chairman, while Nakayama became CEO of Sega Enterprises, Ltd.[sfn 1="Kent" 2="2001" p="343"][sfn 1="Kent" 2="2001" p="494"]

Sega followed the SG-1000 with the Mark III, later rebranded as the [[Master System]] outside Japan. The Mark III launched in Japan in 1985, while the Master System was released in North America in 1986 and Europe in 1987. Although more powerful than the Famicom in some respects, it struggled in Japan and North America because of Nintendo's strong market control and Tonka's ineffective North American marketing. The system performed better in Europe and Brazil, where [[Tectoy]] continued supporting Master System hardware for many years.[ref name="Retroinspection2"][cite_magazine last="McFerran" first="Damien" date="December 2007" title="Retroinspection: Master System" magazine="[[Retro Gamer]]" issue="44" pages="48–53"][/ref][ref name="Horowitz 2016 6–15"][cite_book last="Horowitz" first="Ken" title="Playing at the Next Level: A History of American Sega Games" publisher="[[McFarland & Company]]" year="2016" isbn="978-1-4766-2557-7" pages="6–15"][/ref][cite_web url="http://www.atlasobscura.com/articles/brazil-is-a-video-game-alternate-universe-where-sega-beat-nintendo" title="Brazil Is An Alternate Video Game Universe Where Sega Beat Nintendo" last="Smith" first="Ernie" date="July 27, 2015" work="Atlas Obscura" archive-url="https://web.archive.org/web/20170621140933/http://www.atlasobscura.com/articles/brazil-is-a-video-game-alternate-universe-where-sega-beat-nintendo" archive-date="June 21, 2017" url-status="live" access-date="December 11, 2017"]

Sega also strengthened its arcade operations during the mid-1980s. Sega Europe opened in 1984, and Sega re-entered the North American arcade market in 1985 through Sega Enterprises USA. The release of [[Hang-On]] in 1985 and [[Out Run]] in 1986 marked a renewed arcade rise for the company, with both titles becoming major successes. Sega also introduced [[UFO Catcher]] in 1985, beginning a long-running line of crane machines that became especially prominent in Japan.

<h3 class="wp-block-heading">Mega Drive/Genesis, Sonic the Hedgehog, and mainstream success</h3>

[main title="Sega Mega Drive"]

Sega released the [[Sega Mega Drive]] in Japan in 1988 and in North America as the Sega Genesis in 1989. The system initially struggled in Japan but became a major success overseas, especially in North America. Sega of America, first under Michael Katz and later under [[Tom Kalinske]], promoted the Genesis with aggressive marketing campaigns aimed at Nintendo, including slogans such as "Genesis does what Nintendon't" and "Welcome to the next level."

In 1991, Sega introduced [[Sonic the Hedgehog]] as a new flagship character and mascot. Sonic was designed and marketed as a faster, cooler alternative to [[Mario]], and the release of [[Sonic the Hedgehog]] helped transform the Genesis into a major competitor to the [[Super Nintendo Entertainment System]]. The success of Sonic gave Sega a stronger global identity and helped the Genesis briefly outsell the Super Nintendo in the United States. [[Sonic the Hedgehog 2]], released in 1992, became one of Sega's most successful games, selling six million copies as of June 2006.[ref name="gamasutra"][cite_web last="Boutros" first="David" url="http://www.gamasutra.com/view/feature/1851/a_detailed_crossexamination_of_.php" title="A Detailed Cross-Examination of Yesterday and Today's Best-Selling Platform Games" publisher="Gamasutra" date="4 August 2006" archiveurl="http://web.archive.org/web/20080209182815/http://www.gamasutra.com/view/feature/1851/a_detailed_crossexamination_of_.php" archivedate="9 February 2008"][/ref]

Sega expanded the Mega Drive platform with add-ons such as the [[Sega CD]], which used CD-ROM media to support larger games, video sequences, and expanded audio. Its library included [[Sonic the Hedgehog CD]], one of the system's best-known titles. Sega later released the [[Sega 32X]], an add-on intended to extend the Genesis hardware life with more advanced graphics. Although it sold well at first, the 32X suffered from limited software support, confusion with the upcoming [[Sega Saturn]], and poor long-term sales.

<h4 class="wp-block-heading">Sega v. Accolade</h4>

In 1992, Sega lost the Sega v. Accolade legal case, which concerned independently produced software for the Mega Drive. Accolade had copied a small amount of Sega code while reverse-engineering the console to make unlicensed games. The ruling established that copyright did not extend to non-expressive software elements required for compatibility with a system. Sega had attempted to prevent unlicensed publishers from releasing Mega Drive games unless they paid licensing fees, partly by making the console reject cartridges that did not include a Sega trademark. Although Sega lost the case, later Sega systems continued to include hardware-based security requirements.

<h4 class="wp-block-heading">Arcade successes</h4>

Sega remained a major force in arcades throughout the early and mid-1990s. [[Virtua Racing]] became an important milestone for 3D racing games, while [[Virtua Fighter]], released in 1993, was widely recognized as a major achievement in 3D fighting game design. The game used the [[Sega Model 1]] arcade system board and helped establish the 3D fighting genre.

In 1994, Sega released [[Daytona USA]], which became one of the most successful arcade racing games of its era. Other major arcade releases during the period included [[Virtua Cop]] and [[Star Wars Arcade]]. Sega also launched the [[Sega Channel]], a cable-based subscription service that allowed Genesis owners to download and play games through a special cartridge adapter.

<h3 class="wp-block-heading">Saturn, 32X, and falling console sales</h3>

[main title="Sega Saturn"]

Sega released the [[Sega Saturn]] in Japan in 1994 and in North America in 1995. The Saturn used 32-bit hardware and was designed with strong 2D capabilities and arcade-style software in mind. It launched in the United States ahead of both the [[PlayStation]] and [[Nintendo 64]], but its surprise launch strategy, high price, complex hardware, and weaker Western third-party support damaged its market performance.

The Saturn performed better in Japan, where it became Sega's most successful home console. Its library included arcade conversions such as [[Virtua Fighter 2]] and [[Sega Rally Championship]], as well as titles such as [[Nights into Dreams...]], [[Burning Rangers]], [[Panzer Dragoon]], [[The House of the Dead]], [[Radiant Silvergun]], [[Sakura Wars]], [[Panzer Dragoon Saga]], [[Grandia]], and [[Shining Force III]]. Despite this, the console failed to match the PlayStation's worldwide commercial momentum.

In 1997, Sega entered merger discussions with [[Bandai]], but the plan was cancelled after disagreements between the companies. Around the same time, Sega announced that the Saturn was not its long-term future and began shifting major projects toward its next console, the [[Dreamcast]]. Sega also pursued entertainment venue projects during the period, including [[GameWorks]] and Sega World locations.

<h3 class="wp-block-heading">Dreamcast and continuing struggles</h3>

[main title="Dreamcast"]

Sega launched the [[Dreamcast]] in Japan in 1998 and in North America in 1999. The console used more accessible hardware than the Saturn and included a modem for online play, making it one of the first home consoles designed around internet connectivity. Dreamcast titles such as [[ChuChu Rocket!]], [[Phantasy Star Online]], and [[Alien Front Online]] helped demonstrate online console gaming, while [[Sonic Adventure]] became the first fully 3D mainline Sonic game and one of the system's best-selling titles.

The Dreamcast struggled at launch in Japan because of limited software and the looming arrival of Sony's [[PlayStation 2]]. Its Western launch was more successful, supported by a stronger lineup and aggressive marketing, with 500,000 consoles sold in its first week in North America.[ref]http://www.vidgame.net/SEGA/DC.html[/ref] The system became known for innovative and critically acclaimed games, including [[Jet Set Radio]], [[Seaman]], [[Samba de Amigo]], [[Shenmue]], [[Crazy Taxi]], and [[Skies of Arcadia]].

Despite its strong software reputation, Dreamcast sales slowed after the PlayStation 2 launch. Sega's financial difficulties, combined with competition from Sony, Nintendo, and Microsoft, led the company to discontinue the Dreamcast and leave the console hardware market. On January 31, 2001, Sega announced that it would stop producing the Dreamcast after March 31 and restructure as a third-party developer and publisher. The final Sega-published Dreamcast game was [[NHL 2K2]].

<h3 class="wp-block-heading">Shift to third-party software development </h3>

CSK chairman [[Isao Okawa]] replaced Shoichiro Irimajiri as Sega president on May 22, 2000. Okawa had long supported the idea of Sega leaving the console business, a view also shared by figures such as David Rosen and former Sega of America executive Bernie Stolar.[sfn 1="Kent" 2="2001" p="581–582"][ref name="IGN History of Sega" /] Sega officially changed its company name from Sega Enterprises, Ltd. to Sega Corporation on November 1, 2000, reflecting its shift toward network entertainment and a globalized Sega identity.[ref name="sega_name_change"][cite_web url="http://sega.jp/corp/release/2000/1101_1/" title="Sega Enterprises, Ltd. Changes Company Name" publisher="Sega" date="November 1, 2001" access-date="May 7, 2026" archive-url="https://web.archive.org/web/20150419235822/http://sega.jp/corp/release/2000/1101_1/" archive-date="April 19, 2015" url-status="live" df="mdy-all"][/ref]

On January 23, 2001, Nihon Keizai Shimbun reported that Sega would stop producing the Dreamcast and begin developing software for other platforms. Sega initially denied the report, but later confirmed it was considering software for the [[PlayStation 2]] and [[Game Boy Advance]] under a new management policy.[ref name="ign_sega_sinks"][cite_web url="https://uk.ign.com/articles/2001/01/24/sega-sinks-console-efforts" title="Sega Sinks Console Efforts?" work="[[IGN]]" first="Brandon" last="Justice" date="January 23, 2001" access-date="May 7, 2026" archive-date="November 19, 2015" archive-url="https://web.archive.org/web/20151119111738/http://www.ign.com/articles/2001/01/24/sega-sinks-console-efforts"][/ref][ref name="ign_gba_ps2"][cite_web url="https://uk.ign.com/articles/2001/01/24/sega-confirms-ps2-and-game-boy-advance-negotiations" title="Sega Confirms PS2 and Game Boy Advance Negotiations" work="[[IGN]]" first="Anoop" last="Gantayat" date="January 23, 2001" access-date="May 7, 2026" archive-url="https://web.archive.org/web/20160131135602/http://www.ign.com/articles/2001/01/24/sega-confirms-ps2-and-game-boy-advance-negotiations" archive-date="January 31, 2016"][/ref] On January 31, the company confirmed its transition into a "platform-agnostic" third-party developer and publisher.[cite_web url="http://www.gamespot.com/articles/sega-announces-drastic-restructuring/1100-2680518/" title="Sega announces drastic restructuring" last="Ahmed" first="Shahed" date="January 31, 2001" website="[[GameSpot]]" archive-url="https://web.archive.org/web/20150510200945/http://www.gamespot.com/articles/sega-announces-drastic-restructuring/1100-2680518/" archive-date="May 10, 2015" url-status="live" access-date="May 9, 2026"]

Sega began publishing games on former rival platforms, with early examples including [[ChuChu Rocket!]] for the Game Boy Advance, [[Sonic Adventure 2: Battle]] for the [[Nintendo GameCube]], and [[Virtua Fighter 4]] for the PlayStation 2. The company continued producing arcade hardware during this period, including the [[Sega NAOMI]], [[Sega NAOMI 2]], [[Sega Hikaru]], [[Sega Chihiro]], [[Triforce]], and [[Sega Lindbergh]] arcade systems.

Sega's early third-party period included successful releases, but the company continued to face financial pressure. After Okawa's death in 2001, CSK sought buyers for Sega. Discussions took place with companies including Sammy, Namco, Bandai, Electronic Arts, and Microsoft. Sega's Australian operations were also affected during this transition, with Sega Ozisoft changing hands before Sega later re-established an Australian presence through Sega Europe.

<h3 class="wp-block-heading">Sammy takeover and business expansion</h3>

In August 2003, [[Sammy Corporation]] purchased 22.4 percent of Sega's shares from CSK, becoming Sega's largest shareholder.[ref name="gspot_sammy_merge"][cite_web url="http://www.gamespot.com/articles/sammy-merging-with-sega/1100-6098677/" title="Sammy merging with Sega" work="[[GameSpot]]" first1="Hirohiko" last1="Niizumi" first2="Tor" last2="Thorsen" date="May 26, 2004" access-date="May 18, 2026" archive-url="https://web.archive.org/web/20081006132850/http://www.gamespot.com/news/2004/05/18/news_6098677.html" archive-date="October 6, 2008" url-status="live"][/ref][cite_web last="Niizumi" first="Hirohiko" url="http://www.gamespot.com/news/2004/05/18/news_6098677.html" title="Sammy merging with Sega" publisher="[[GameSpot]]" date="10 June 2004" archiveurl="http://web.archive.org/web/20040611003203/http://www.gamespot.com/news/2004/05/18/news_6098677.html" archivedate="11 June 2004" access-date="10 May 2026"] Sammy chairman [[Hajime Satomi]] became CEO of Sega and indicated that the company would focus more heavily on its profitable arcade business. In December 2003, Sega released [[Sonic Heroes]], the first Sonic game to launch across [[Nintendo GameCube]], [[PlayStation 2]], and [[Xbox]].

In 2004, Sammy acquired a controlling share in Sega for $1.1 billion, creating [[Sega Sammy Holdings]]. Sega and Sammy became subsidiaries of the new holding company while operating independently under a merged executive structure. The merger led to internal restructuring, including the reabsorption of several second-party studios and changes in corporate culture.[cite_web author="Kikizo Staff" url="http://archive.videogamesdaily.com/features/tetsuya_mizuguchi_iv_oct05_p1.asp" title="Tetsuya Mizuguchi Interview 2005" date="13 October 2005" access-date="13 May 2026"]

In 2005, [[Mike Hayes]] became head of Sega Europe and helped guide the company's transition as a third-party publisher. That same year, Sega sold [[Visual Concepts]] and its subsidiary Kush Games to [[Take-Two Interactive]]. Visual Concepts had been responsible for many Sega Sports titles, including the NFL 2K series, and the acquisition helped lead to Take-Two's 2K Games publishing label.

By the end of 2005, Sega saw stronger earnings across several divisions, supported by pachinko sales and software such as [[Yakuza]], [[Mushiking]], and [[Sonic the Hedgehog (2006)]].[cite_web url="http://www.segasammy.co.jp/english/pdf/release/Notice070206-Adjustment%20_2_.pdf" title="Notice of Adjustment to the Forecasts of Whole-Year Operating Results for the Year Ending March 31, 2006" date="31 March 2006" publisher="Sega Sammy Holdings" archiveurl="http://web.archive.org/web/20070925210730/http://www.segasammy.co.jp/english/pdf/release/Notice070206-Adjustment%20_2_.pdf" archivedate="25 September 2007" access-date="10 May 2026" format="PDF"] Sega expanded its Western development and publishing activity through partnerships with studios such as Obsidian Entertainment, Monolith Productions, Bizarre Creations, and Silicon Knights. It also acquired [[Sports Interactive]] after publishing Football Manager 2005 and Football Manager 2006, and acquired the American studio Secret Level.[cite_web last="Bramwell" first="Tom" url="http://www.gamesindustry.biz/content_page.php?aid=15612" title="SEGA signs Obsidian for next-generation RPG" publisher="Games Industry" date="23 March 2006" archiveurl="http://web.archive.org/web/20071011110302/http://www.gamesindustry.biz/content_page.php?aid=15612" archivedate="11 October 2007" access-date="10 May 2026"][cite_web author="GamesIndustry.biz staff" url="http://www.gamesindustry.biz/content_page.php?aid=15856" title="Sega deal is worth &quot;circa GBP 30m&quot; - Sports Interactive boss" publisher="Games Industry" date="4 April 2006" archiveurl="http://web.archive.org/web/20060627185659/http://www.gamesindustry.biz/content_page.php?aid=15856" archivedate="27 June 2006" access-date="4 May 2026"][cite_web last="Gibson" first="Ellie" url="http://www.gamesindustry.biz/content_page.php?aid=15834" title="SEGA establishes new internal development arm in US" date="4 April 2006" publisher="Games Industry" archiveurl="http://web.archive.org/web/20071211035924/https://www.gamesindustry.biz/content_page.php?aid=15834" archivedate="11 December 2007" access-date="4 May 2026"]

Sega also supported former [[Sonic Team]] head [[Yuji Naka]] in forming [[Prope]] in 2006, providing startup capital and retaining the option to publish games from the studio.[cite_web last="Gibson" first="Ellie" url="http://www.gamesindustry.biz/content_page.php?aid=16707" title="Sonic creator sets up new studio with help from SEGA" publisher="Games Industry" date="8 May 2006" archiveurl="http://web.archive.org/web/20070301121025/http://www.gamesindustry.biz/content_page.php?aid=16707" archivedate="1 March 2007" access-date="10 May 2026"] During this period, Sega's software output included titles such as [[Shadow the Hedgehog]], [[Sonic Riders]], [[Super Monkey Ball]], [[Football Manager]], [[Yakuza]], and [[Mushiking]].

Beginning in 2013, Sega expanded through acquisitions and restructuring. It acquired [[Atlus]] through the purchase of Index Corporation, bringing franchises such as [[Persona]], [[Shin Megami Tensei]], and [[Etrian Odyssey]] into the Sega Sammy group. Sega also acquired [[Relic Entertainment]] in 2013, strengthening its Western PC strategy alongside existing subsidiaries such as [[Creative Assembly]] and Sports Interactive.

<h3 class="wp-block-heading">Sega Games and Sega Interactive </h3>

In April 2015, Sega Corporation was reorganized as part of Sega Group, one of the three groups of Sega Sammy Holdings. Sega Holdings Co., Ltd. was established, and Sega Corporation was renamed [nihongo]Sega Games Co., Ltd.||株式会社セガゲームス||Kabushiki-gaisha Sega Gēmuzu[/nihongo], which managed home video games. At the same time, [nihongo]Sega Interactive Co., Ltd.||株式会社セガ・インタラクティブ||Kabushiki-gaisha Sega Intarakutibu[/nihongo] was created to manage Sega's arcade business.[ref name="Famitsu interview Haruki Satomi"][cite_magazine url="http://www.famitsu.com/news/201507/20082607.html" title="セガゲームス始動！代表取締役社長CEO里見治紀氏に訊く新会社設立の意図と将来像" trans-title="Sega Games started! Interview with Haruki Satomi, President and CEO" date="July 20, 2015" magazine="[[Famitsu]]" language="ja" archive-url="https://web.archive.org/web/20150828064709/http://www.famitsu.com/news/201507/20082607.html" archive-date="August 28, 2015" url-status="live" access-date="May 9, 2026"][ref name="History of SEGA SAMMY group"][cite_web url="https://www.segasammy.co.jp/english/pr/corp/history/" title="History of SEGA SAMMY group" publisher="[[Sega Sammy Holdings]]" archive-url="https://web.archive.org/web/20190331220100/https://www.segasammy.co.jp/english/pr/corp/history/" archive-date="March 31, 2019" url-status="live" access-date="March 8, 2019"][/ref]

In April 2015, Sega Corporation was reorganized as part of Sega Group, one of the three groups of Sega Sammy Holdings. Sega Holdings Co., Ltd. was established, and Sega Corporation was renamed [nihongo]Sega Games Co., Ltd.||株式会社セガゲームス||Kabushiki-gaisha Sega Gēmuzu[/nihongo], which managed home video games. At the same time, [nihongo]Sega Interactive Co., Ltd.||株式会社セガ・インタラクティブ||Kabushiki-gaisha Sega Intarakutibu[/nihongo] was created to manage Sega's arcade business.[ref name="Famitsu interview Haruki Satomi"][cite_magazine url="http://www.famitsu.com/news/201507/20082607.html" title="セガゲームス始動！代表取締役社長CEO里見治紀氏に訊く新会社設立の意図と将来像" trans-title="Sega Games started! Interview with Haruki Satomi, President and CEO" date="July 20, 2015" magazine="[[Famitsu]]" language="ja" archive-url="https://web.archive.org/web/20150828064709/http://www.famitsu.com/news/201507/20082607.html" archive-date="August 28, 2015" url-status="live" access-date="May 9, 2026"][/ref][ref name="History of SEGA SAMMY group"][cite_web url="https://www.segasammy.co.jp/english/pr/corp/history/" title="History of SEGA SAMMY group" publisher="[[Sega Sammy Holdings]]" archive-url="https://web.archive.org/web/20190331220100/https://www.segasammy.co.jp/english/pr/corp/history/" archive-date="March 31, 2019" url-status="live" access-date="March 8, 2019"][/ref]

Sega Networks merged with Sega Games in 2015. In 2016, Sega acquired the intellectual property and development rights to games developed and published by [[Technosoft]].[cite_web title="［TGS 2016］「サンダーフォースIII」の立体視リメイクが「セガ3D復刻アーカイブス3」に収録。セガゲームスによるテクノソフト全タイトルの権利取得も発表" trans-title="&#91;TGS 2016&#93; Stereoscopic remake of &quot;Thunder Force III&quot; is included in &quot;SEGA 3D Reprint Archives 3&quot;. Sega Games also announced acquisition of rights for all Technosoft titles" url="http://www.4gamer.net/games/355/G035505/20160917017/" date="September 17, 2016" website="[[4Gamer.net]]" language="ja" url-status="live" archive-url="https://web.archive.org/web/20160920134641/http://www.4gamer.net/games/355/G035505/20160917017/" archive-date="September 20, 2016" access-date="May 24, 2026"] Sega also continued expanding through Western studios, acquiring [[Two Point Studios]] in 2019 after the success of [[Two Point Hospital]].[ref name="gamesindustry Sinclair 2019"][cite_web url="https://www.gamesindustry.biz/articles/2019-05-09-sega-acquires-two-point-studios" title="Sega acquires Two Point Studios" last="Sinclair" first="Brendan" date="May 9, 2019" website="[[GamesIndustry.biz]]" archive-url="https://web.archive.org/web/20190509115733/https://www.gamesindustry.biz/articles/2019-05-09-sega-acquires-two-point-studios" archive-date="May 9, 2019" url-status="live" access-date="May 9, 2026"][/ref]

On April 1, 2020, Sega Interactive merged with Sega Games. The company was renamed Sega Corporation again, while Sega Holdings Co., Ltd. became Sega Group Corporation. The restructuring was intended to allow greater flexibility in research and development.[cite_web title="セガゲームスがセガに。セガサミーホールディングスが組織再編と一部連結子会社の商号変更を発表" trans-title="SEGA Games becomes SEGA. SEGA SAMMY HOLDINGS announces reorganization and change of trade names of some consolidated subsidiaries" url="https://www.4gamer.net/games/999/G999905/20191224082/" last="Matsumoto" first="Ryuichi" date="December 24, 2019" website="[[4Gamer.net]]" language="ja" url-status="live" archive-url="https://web.archive.org/web/20200125130535/https://www.4gamer.net/games/999/G999905/20191224082/" archive-date="January 25, 2020" access-date="May 24, 2026"][ref name="Sega Sammy Notice of mergers"][cite_web url="https://www.segasammy.co.jp/english/pdf/release/20191224_reorganization_e_final.pdf" title="Notice of mergers between consolidated subsidiaries and changes in trade names of certain consolidated subsidiaries due to organizational restructuring in Entertainment Contents Business" date="December 24, 2019" publisher="[[Sega Sammy Holdings]]" url-status="live" archive-url="https://web.archive.org/web/20191224091004/https://www.segasammy.co.jp/english/pdf/release/20191224_reorganization_e_final.pdf" archive-date="December 24, 2019" access-date="May 3, 2026"][/ref]

<h3 class="wp-block-heading">Recent history</h3>

As part of Sega's 60th anniversary in 2020, the company announced projects such as the [[Game Gear Micro]] and Astro City Mini, alongside commemorative merchandise.[cite_web title="【アーカイブ】60周記念GOSEGAグッズ・イベント | 60周記念GOSEGAグッズ | セガ設立60周年特設サイト" url="https://60th.sega.com/goods/" archive-url="https://web.archive.org/web/20210122195019/https://60th.sega.com/goods/" archive-date="2021-01-22" access-date="2026-05-28" website="セガ設立60周年特設サイト"] The company continued to operate as Sega Sammy Holdings' entertainment contents division while maintaining major console, PC, mobile, arcade, toy, and animation-related businesses.

In 2022, Sega opened [[Sega Sapporo Studio]] in Hokkaido, Japan, to support Tokyo-based development teams and handle partial game development.[cite_web url="https://www.sega.co.jp/en/release/220111_1.html" title="SEGA officially opens Sega Sapporo Studio to handle game-development operations in Hokkaido, Japan" date="January 11, 2022" access-date="May 27, 2026" work="Sega"] In 2023, Sega acquired [[Rovio Entertainment]], adding [[Angry Birds]] and Rovio's mobile development operations to the company. In 2024, [[Relic Entertainment]] became independent from Sega, and [[Amplitude Studios]] also became independent after buying itself back from the company.

Sega remains one of the most recognized names in the video game industry, with [[Sonic the Hedgehog]] continuing to serve as its mascot and one of its central global franchises.

<h2 class="wp-block-heading">Business interests</h2>

<h3 class="wp-block-heading">Amusement machines</h3>

Sega has been active in the amusement industry for most of its history. Alongside companies such as [[Namco]] and [[Taito]], it became one of the major forces in the Japanese arcade market during the second half of the twentieth century. Although the arcade business declined from its peak in the 1980s and early 1990s, Sega remained a prolific manufacturer of arcade and amusement machines, particularly in Japan.

Sega's amusement machine business has often focused on experiences that are difficult to reproduce in the home. This approach can be seen in arcade titles ranging from [[Hang-On]] in 1985 to later music and rhythm games such as [[Maimai]]. In Japan, Sega also emphasized networked arcade features, allowing players to compete across different venues and track their progress through mobile apps or physical player cards.

The company's early business was built around gambling and coin-operated machines. Because real-money gaming is heavily regulated, Sega shifted from the mid-1980s toward "medal" games. These machines use venue-specific currency with no value outside the location, while still offering risk-and-reward mechanics similar to gambling machines.

Although arcades declined sharply in Western markets after the 1980s, Sega continued operating amusement-related businesses in North America and Europe. These branches have distributed products from third-party manufacturers and maintained older Sega arcade machines, particularly racing and shooting games. Titles such as [[Daytona USA]] and [[Sega Rally Championship]] remained common sights in arcades long after their original release, while Sega's Western operations also continued supporting new arcade projects for those markets.

Sega has also expanded beyond traditional arcade video games into other amusement products, including change machines, motion simulators, and ride-on machines for young children. Since 1985, the company has produced the [[:Category:UFO Catcher|UFO Catcher]] line of crane machines, which became a long-running fixture of Japanese game centers. Sega not only manufactures the cabinets but also sources and distributes prizes for the machines.

<h3 class="wp-block-heading">Video games</h3>

Sega entered the home consumer video game market in 1983 and spent nearly two decades as both a software developer and hardware manufacturer. During that period, the company produced consoles such as the [[SG-1000]], [[Sega Master System]], [[Sega Mega Drive]], [[Sega Saturn]], and [[Dreamcast]]. It also created several major game franchises, most notably [[Sonic the Hedgehog series|Sonic the Hedgehog]], whose lead character became Sega's mascot.

After leaving the console hardware business, Sega continued supporting home video game platforms from [[Nintendo]], [[Sony]], and [[Microsoft]], while also expanding its presence on PC and mobile devices. The company had earlier entered the PC market through operations such as [[SegaSoft]] and [[Sega PC]], while its later PC strategy became closely tied to Western subsidiaries such as [[The Creative Assembly]], [[Sports Interactive]], and [[Relic Entertainment]]. Sega began mobile phone development in 2000 through [[Sonic Cafe]], and mobile gaming later became a significant part of the company's business. Titles such as [[Chain Chronicle]] and [[Puyo Puyo!! Quest]] became among its stronger mobile performers.[fileref file="AnnualReport2016 English.pdf" page="43"]

Sega maintains internal development studios in Japan, with resources often shared between consumer and arcade projects. [[Sega of America]] and [[Sega Europe]] also form part of the company's wider development and publishing structure, though their work has generally centered on external developers, partnerships, and subsidiaries rather than the same internal studio model used in Japan.

Following Sega Sammy's acquisition of Index Holdings in 2013, [[Atlus]] became part of the Sega Sammy group, bringing franchises such as [[Persona]], [[Megami Tensei]], and [[Etrian Odyssey]] under the company's wider structure. Sega's major active franchises include Sonic the Hedgehog, [[Phantasy Star Online]], Yakuza (Ryu ga Gotoku), Hatsune Miku: Project DIVA, and Puyo Puyo'.

<h3 class="wp-block-heading">Entertainment venues</h3>

Sega has operated and been affiliated with a wide range of entertainment venues. Its Japanese game centers began opening in the late 1960s, and the company later expanded into locations such as [[Joypolis]] indoor amusement parks, [[Sega World]] amusement centers, [[Club Sega]] arcades, and spa and leisure facilities. At its peak in 1999, Sega operated around 870 venues across Japan.[fileref file="AnnualReport1999 English.pdf" page="14"]

Outside Japan, Sega owned and operated venues such as [[Sega Republic]] in the United Arab Emirates, as well as locations in Taiwan and China. Financial pressure, the merger with Sammy, and restructuring in the mid-2000s led Sega to part with many of its overseas entertainment venues, including the [[GameWorks]] chain in the United States, Sega World venues in Australia and South Korea, and European arcade locations such as [[SegaWorld London]]. Some venues continued using the Sega name after Sega no longer directly managed them, particularly following the sales of [[Sega Live Creation|CA Sega Joypolis]] and [[Sega Entertainment]].

These dedicated venues gave Sega a place to develop and showcase larger amusement projects, including indoor rides, theater-style attractions, and location tests for new arcade machines.

<h3 class="wp-block-heading">Consumer products</h3>

Sega has also entered the toy, electronics, and broader consumer product markets at various points in its history. One of its most significant moves was the 1994 takeover of Yonezawa Toys, which led to the creation of [[Sega Toys]] in 1998. As one of Japan's largest post-war toy manufacturers, Yonezawa gave Sega a major presence in the Japanese toy industry and helped connect the company with partners such as [[Hasbro]] in the United States. Sega Toys continues to exist as a separate entity within Sega Sammy Holdings.

The company has produced and sold a variety of non-game products, including karaoke equipment such as [[Prologue 21]], the [[Digio SJ-1]] digital camera, the [[Sega-Vision]] television, [[IR 7000 Communicator]] PDAs, and films on VHS. Sega has also worked with partners such as [[TMS Entertainment]] on animated productions, while its properties have been adapted into books, albums, board games, audiobooks, and other licensed products.

Sega franchises have also been adapted for the stage. These include biannual theater productions based on [[Sakura Taisen]] and later productions such as [[Phantasy Star Online 2: On Stage]].

<h2 class="wp-block-heading">Corporate structure</h2>

Since 2004, Sega has been a subsidiary of [[Sega Sammy Holdings]].[ref name="gamespot Niizumi 2004"][cite_web url="http://www.gamespot.com/articles/sammy-reveals-new-logo-changes-at-sega/1100-6099624/" title="Sammy reveals new logo, changes at Sega" last="Niizumi" first="Hirohiko" date="June 1, 2004" website="[[GameSpot]]" archive-url="https://web.archive.org/web/20180828001811/https://www.gamespot.com/articles/sammy-reveals-new-logo-changes-at-sega/1100-6099624/" archive-date="August 28, 2018" url-status="live" access-date="May 16, 2026"][/ref] Its global headquarters are located in [[Shinagawa, Tokyo]], Japan.[cite_web url="https://www.segasammy.co.jp/english/pdf/release/20180520%20segasammy_release_e.pdf" title="- Initiative towards Further Growth of Sega Sammy Group - Consolidation of Group Headquarters Functions (Detailed Information) and Introduction of Sideline Job System (JOB+)" publisher="[[Sega Sammy Holdings]]" date="May 2018" access-date="May 14, 2026" archive-date="September 15, 2022" archive-url="https://web.archive.org/web/20220915022714/https://www.segasammy.co.jp/english/pdf/release/20180520%20segasammy_release_e.pdf" url-status="dead"] Sega also operates regional offices and branches through [[Sega of America]] in [[Irvine, California]], [[Sega Europe]] in London, [[Sega Publishing Korea]] in Seoul, and additional Asian offices in Singapore, Hong Kong, Shanghai, and Taipei.[cite_web url="http://www.sega.co.uk/corporate" title="SEGA UK – Corporate" date="March 26, 2015" publisher="Sega" archive-url="https://web.archive.org/web/20180918123626/http://www.sega.co.uk/corporate" archive-date="September 18, 2018" url-status="live" access-date="May 17, 2026"][cite_web title="Location to Sega Publishing Korea" url="http://eng.sega-spk.co.kr/CorpInfo/CorpMap.asp" publisher="Sega" url-status="live" archive-url="https://web.archive.org/web/20190512034631/http://eng.sega-spk.co.kr/CorpInfo/CorpMap.asp" archive-date="May 12, 2019" access-date="May 11, 2026"][ref name="Sega Sammy Holdings"][cite_web title="Group Companies List (Overseas)" work="SEGA SAMMY HOLDINGS" url="https://www.segasammy.co.jp/english/pr/corp/group/list_kaigai/" publisher="[[Sega Sammy Holdings]]" url-status="live" archive-url="https://web.archive.org/web/20190512034638/https://www.segasammy.co.jp/english/pr/corp/group/list_kaigai/" archive-date="May 12, 2019" access-date="May 11, 2026"][/ref] In some regions, Sega uses contracted distributors for its games and hardware, such as [[Tectoy]] in Brazil.[ref name="Retroinspection2" /]

Sega has previously operated offices in France, Germany, Spain, and Australia, though several of those markets later shifted to distributor-based operations following restructuring.[ref name="gspot_eu_au"][cite_web url="http://www.gamespot.com/articles/sega-to-close-five-european-australian-offices/1100-6384808/" title="Sega to close five European, Australian offices" work="[[GameSpot]]" first="Jake" last="Harris" date="June 28, 2012" access-date="May 7, 2026" archive-url="https://web.archive.org/web/20150510072940/http://www.gamespot.com/articles/sega-to-close-five-european-australian-offices/1100-6384808/" archive-date="May 10, 2015" url-status="live" df="mdy-all"][/ref][cite_web url="https://www.gamedeveloper.com/business/sega-closing-multiple-offices-to-focus-on-digital-stronger-ips" title="Sega closing multiple offices to focus on digital, stronger IPs" last="Rose" first="Mike" date="June 28, 2012" website="[[Gamasutra]]" archive-url="https://web.archive.org/web/20190512034628/https://gamasutra.com/view/news/173177/Sega_closing_multiple_offices_to_focus_on_digital_stronger_IPs.php" archive-date="May 12, 2019" url-status="live" access-date="May 11, 2026"]

<h3 class="wp-block-heading">Subsidiaries</h3>

After the formation of Sega Group in 2015 and the establishment of Sega Holdings, the former Sega Corporation was renamed Sega Games Co., Ltd. Under that structure, Sega Games handled the home video game market and consumer development, while Sega Interactive Co., Ltd. handled the arcade game business.[ref name="History of SEGA SAMMY group" /][ref name="Sega Business Summary"][cite_web url="https://www.sega.co.jp/english/about/summary/#am" title="Business Summary" publisher="Sega" language="en" archive-url="https://web.archive.org/web/20180906195658/https://www.sega.co.jp/english/about/summary/#am" archive-date="September 6, 2018" url-status="dead" access-date="May 6, 2026"][/ref] The two companies were consolidated in 2020 and renamed Sega Corporation.[ref name="Sega Sammy Notice of mergers" /] Sega Group Corporation was later absorbed into Sega Corporation in 2021.[ref name=":0"][cite_news last1="Romano" first1="Sal" date="January 29, 2021" title="Toshihiro Nagoshi to step down as Sega CCO and become creative director; Sega Sammy announces organizational restructure" work="Gematsu" url="https://www.gematsu.com/2021/01/toshihiro-nagoshi-to-step-down-as-sega-cco-and-become-creative-director-sega-sammy-announces-organizational-restructure" access-date="May 2, 2026"][/ref]

Sega Corporation develops and publishes games for major video game consoles, PC, mobile devices, and arcades. It also includes Sega Networks, which handles smartphone game development.[ref name="Famitsu interview Haruki Satomi" /] The company has not returned to console hardware manufacturing. Former Sega Europe CEO Mike Brogan stated that "There is no future in selling hardware. In any market, through competition, the hardware eventually becomes a commodity ... If a company has to sell hardware then it should only be to leverage software, even if that means taking a hit on the hardware."[ref name="Eurogamer" /]

Sega's major gaming subsidiaries and related companies include:

<figure class="wp-block-table wikitable"><table><thead><tr><th class="has-text-align-center" data-align="center">Name</th><th class="has-text-align-center" data-align="center">Location</th><th>Assets</th><th class="has-text-align-center" data-align="center">Acquisition</th><th class="has-text-align-center" data-align="center">Notes</th></tr></thead><tbody><tr><td class="has-text-align-center" data-align="center">Atlus</td><td class="has-text-align-center" data-align="center">Japan</td><td>

Catherine

Etrian Odyssey series

Megami Tensei series

<ul>

<li>Devil Children series</li>

<li>Devil Survivor series</li>

<li>Last Bible series</li>

<li>Persona series</li>

<li>Majin Tensei series</li>

<li>Shin Megami Tensei series</li>

</ul>

Power Instinct series

Radiant Historia

Trauma Center series

</td><td class="has-text-align-center" data-align="center">2013</td><td class="has-text-align-center" data-align="center">Restored after being absorbed by Index Corporation</td></tr><tr><td class="has-text-align-center" data-align="center">Career Soft</td><td class="has-text-align-center" data-align="center">Japan</td><td>

Elthlead series

Growlanser series

Langrisser series (Formerly)

</td><td class="has-text-align-center" data-align="center">2001 (By Atlus)</td><td class="has-text-align-center" data-align="center">Categorized under Atlus, rather than directly under Sega</td></tr><tr><td class="has-text-align-center" data-align="center">The Creative Assembly</td><td class="has-text-align-center" data-align="center">United Kingdom</td><td>

Alien: Isolation

Spartan: Total War

Stormrise

Total War series

Viking: Battle for Asgard

</td><td class="has-text-align-center" data-align="center">2005</td><td class="has-text-align-center" data-align="center"></td></tr><tr><td class="has-text-align-center" data-align="center">Ignited Artists</td><td class="has-text-align-center" data-align="center">United States</td><td>Barbaric</td><td class="has-text-align-center" data-align="center">2014</td><td class="has-text-align-center" data-align="center"></td></tr><tr><td class="has-text-align-center" data-align="center">Megasoft</td><td class="has-text-align-center" data-align="center">Japan</td><td>

Aa Harimanada

Battle Golfer Yui

Mahjong Cop Ryuu

Shinobi III: Return of the Ninja Master

Space Harrier

</td><td class="has-text-align-center" data-align="center">1991</td><td class="has-text-align-center" data-align="center"></td></tr><tr><td class="has-text-align-center" data-align="center">Play Heart</td><td class="has-text-align-center" data-align="center">Japan</td><td>

Gold Rebellion R

Last Legion

</td><td class="has-text-align-center" data-align="center">2015</td><td class="has-text-align-center" data-align="center">Acquisition not covered by any major news site, but confirmed by SEGA in <a href="https://www.segasammy.co.jp/english/ir/library/pdf/printing_annual/2015/all_ar2015_e.pdf" rel="nofollow noopener" target="_blank">its annual report</a>, and backed up by corporate databases like <a href="https://www.crunchbase.com/organization/play-heart" rel="nofollow noopener" target="_blank">Crunchbase</a> and <a href="https://acquiredby.co/sega-acquisitions/play-heart/5486/" rel="nofollow noopener" target="_blank">acquiredby.co</a>.</td></tr><tr><td class="has-text-align-center" data-align="center">Renovation Products</td><td class="has-text-align-center" data-align="center">United States</td><td>

Beast Wrestler

DJ Boy

Elemental Master

El Viento

Gaiares

Jennifer Capriati Tennis

Sol Deace

Valis

Vapor Trail

Whip Rush

</td><td class="has-text-align-center" data-align="center">1993</td><td class="has-text-align-center" data-align="center"></td></tr><tr><td class="has-text-align-center" data-align="center">Rovio Entertainment</td><td class="has-text-align-center" data-align="center">Finland</td><td>

Angry Birds series

Sonic Rumble

</td><td class="has-text-align-center" data-align="center">2023</td><td class="has-text-align-center" data-align="center"></td></tr><tr><td class="has-text-align-center" data-align="center">Sports Interactive</td><td class="has-text-align-center" data-align="center">United Kingdom</td><td>

Eastside Hockey Manager series

Football Manager series

Out of the Park Baseball Manager series

</td><td class="has-text-align-center" data-align="center">2005</td><td class="has-text-align-center" data-align="center"></td></tr><tr><td class="has-text-align-center" data-align="center">Technosoft</td><td class="has-text-align-center" data-align="center">Japan</td><td>

Herzog series

Thunder Force series

</td><td class="has-text-align-center" data-align="center">2016</td><td class="has-text-align-center" data-align="center">Assets owned fully by SEGA; brand name is used both by SEGA and Twenty-One Company</td></tr><tr><td class="has-text-align-center" data-align="center">Two Point Studios</td><td class="has-text-align-center" data-align="center">United Kingdom</td><td>Two Point Hospital</td><td class="has-text-align-center" data-align="center">2019</td><td class="has-text-align-center" data-align="center"></td></tr></tbody></table></figure>

Sega Sammy's wider entertainment contents operations also include toy, animation, music, and media-related companies:

<figure class="wp-block-table wikitable"><table><thead><tr><th class="has-text-align-center" data-align="center">Name</th><th class="has-text-align-center" data-align="center">Location</th><th class="has-text-align-center" data-align="center">Industry</th><th class="has-text-align-center" data-align="center">Assets</th><th class="has-text-align-center" data-align="center">Acquisition</th><th class="has-text-align-center" data-align="center">Notes</th></tr></thead><tbody><tr><td class="has-text-align-center" data-align="center">ENGI</td><td class="has-text-align-center" data-align="center">Japan</td><td class="has-text-align-center" data-align="center">Animation</td><td class="has-text-align-center" data-align="center">

Full Dive anime

Kantai Collection Project anime

Kemono Michi: Rise Up series

The Detective is Already Dead anime

</td><td class="has-text-align-center" data-align="center">2018</td><td class="has-text-align-center" data-align="center">40% of shares only</td></tr><tr><td class="has-text-align-center" data-align="center">Marza Animation Planet</td><td class="has-text-align-center" data-align="center">Japan</td><td class="has-text-align-center" data-align="center">Animation</td><td class="has-text-align-center" data-align="center">

Lupin III: The First

Sonic the Hedgehog films

Cutscenes for SEGA games

</td><td class="has-text-align-center" data-align="center">2003</td><td class="has-text-align-center" data-align="center">Categorized under TMS Entertainment, rather than directly under Sega</td></tr><tr><td class="has-text-align-center" data-align="center">TMS Entertainment</td><td class="has-text-align-center" data-align="center">Japan</td><td class="has-text-align-center" data-align="center">Animation</td><td class="has-text-align-center" data-align="center">

Bakugan franchise

Sonic X

Anime adaptations of various manga

</td><td class="has-text-align-center" data-align="center">2010</td><td class="has-text-align-center" data-align="center"></td></tr><tr><td class="has-text-align-center" data-align="center">Wave Master</td><td class="has-text-align-center" data-align="center">Japan</td><td class="has-text-align-center" data-align="center">Music, films, TV, games (until 2003)</td><td class="has-text-align-center" data-align="center">

Panic!

Puyo Pop (GBA)

Roommania series

Sound design for SEGA games

</td><td class="has-text-align-center" data-align="center"></td><td class="has-text-align-center" data-align="center"></td></tr><tr><td class="has-text-align-center" data-align="center">Yonezawa Toys (Sega Toys/Sega Fave)</td><td class="has-text-align-center" data-align="center">Japan</td><td class="has-text-align-center" data-align="center">Toys</td><td class="has-text-align-center" data-align="center">Toys</td><td class="has-text-align-center" data-align="center">1990</td><td class="has-text-align-center" data-align="center"></td></tr></tbody></table></figure>

[[Sega Fave]] originated as Yonezawa Toys, which Sega acquired in the early 1990s. The company has produced toys and children's franchise products connected to series such as [[Oshare Majo: Love and Berry]], [[Mushiking: King of the Beetles]], [[Lilpri]], [[Bakugan]], [[Jewelpet]], [[Rilu Rilu Fairilu]], [[Dinosaur King]], and [[Hero Bank]]. Its products released outside Japan include the [[Megastar (projector)|Homestar]] home planetarium and the [[iDog]] robot dog.

Sega also operates or has operated related companies in distribution and licensing. Sega Logistics Service distributes and repairs arcade games.[ref name="Sega Business Summary" /] In 2015, Sega and [[Hakuhodo]] formed Stories LLC, a joint venture for film and television development. Stories LLC was given exclusive licensing rights to adapt Sega properties for film and television and has worked on projects based on franchises such as [[Shinobi]], [[Golden Axe]], [[Virtua Fighter]], [[The House of the Dead]], and [[Crazy Taxi]].[cite_web url="http://www.stories-llc.com/about" title="Stories LLC., Stories International Inc." publisher="Stories International LLC." url-status="live" archive-url="https://web.archive.org/web/20160430025500/http://www.stories-llc.com/about" archive-date="April 30, 2016" access-date="May 15, 2026"][cite_web title="Our Back Story" url="https://www.hakuhodo-global.com/network/stories-international-inc.html" publisher="[[Hakuhodo]]" url-status="live" archive-url="https://web.archive.org/web/20171222052212/https://www.hakuhodo-global.com/network/stories-international-inc.html" archive-date="December 22, 2017" access-date="May 25, 2026"][cite_web title="Stories International partners with 'The Walking Dead' producers Circle of Confusion on film and TV adaptations of hit Sega franchises 'Altered Beast' and 'Streets of Rage'" url="http://www.stories-llc.com/news/stories-international-partners-with-the-walking-dead-producers-circle-of-confusion-on-film-tv-adaptations-of-hit-sega-franchises-altered-beast-and-street" publisher="Stories International LLC" url-status="live" archive-url="https://web.archive.org/web/20180303212701/http://www.stories-llc.com/news/stories-international-partners-with-the-walking-dead-producers-circle-of-confusion-on-film-tv-adaptations-of-hit-sega-franchises-altered-beast-and-street" archive-date="March 3, 2018" access-date="May 25, 2026"]

<h3 class="wp-block-heading">Research and development</h3>

[see_also][[Sega development studios]][/see_also]

Sega releases games developed by its internal [[research and development]] teams as well as by acquired studios and external partners. The [[Sonic the Hedgehog]] franchise is maintained through [[Sonic Team]], one of Sega's best-known development divisions, and remains one of the company's central global properties.[ref name="sega_sammy_annual_report_2014" /] Sega's development network also includes [[Atlus]], [[Creative Assembly]], [[Sports Interactive]], [[Hardlight|Sega Hardlight]], [[Two Point Studios]], and [[Rovio Entertainment]], among others.

Sega's internal software development structure began with a single development division under longtime head of research and development Hisashi Suzuki. As the home console market grew, Sega expanded its consumer development work into multiple Consumer Development divisions. Arcade development also expanded into separate development teams, including Sega DD No. 1, 2, and 3, before being reorganized as Sega Amusement Machine Research and Development teams. These became known as the AM teams, and Sega's arcade and consumer divisions sometimes operated with distinct internal cultures and rivalries.[ref][[#refHorowitz2018|Horowitz 2018]], p. 153[/ref]

In 2000, Sega reorganized its arcade and console development groups into ten semi-autonomous studios led by major Sega designers.[ref name="IGN History of Sega" /][ref name="Dreamcast memorial" /][sfn 1="Kent" 2="2001" pages="577–578, 581"] These studios included [[United Game Artists]], [[Smilebit]], Hitmaker, Sega Rosso, [[WOW Entertainment]], Overworks, Wave Master, [[Amusement Vision]], Sega-AM2, and [[Sonic Team]].[ref name="IGN History of Dreamcast" /][ref name="Sega's new beginning"][cite_magazine date="October 2000" title="Sega's new beginning" magazine="[[Edge]]" issue="89" pages="68–78"][/ref] The structure gave Sega's creative teams a high level of autonomy during the Dreamcast and early third-party period.

After Sega moved further into third-party development, the company began reintegrating many of those studios into the main company. In 2003, president Hisao Oguchi announced plans to consolidate Sega's studios, and the reintegration process began before Sammy acquired Sega.[ref name="Fahey" /][cite_news url="https://www.gamesindustry.biz/articles/sega-development-studios-return-to-the-fold" title="Sega development studios return to the fold" last="Fahey" first="Rob" date="June 29, 2004" work="[[GamesIndustry.biz]]" access-date="May 11, 2026" archive-url="https://web.archive.org/web/20180711093418/https://www.gamesindustry.biz/articles/sega-development-studios-return-to-the-fold" archive-date="July 11, 2018" url-status="live"] [[Toshihiro Nagoshi]], formerly head of Amusement Vision, later described the period as "in many ways a labour of love" because it taught Sega's creative staff the business side of game development.[cite_web last="Takeuchi" first="Takuya" date="June 2, 2020" title="SEGA 60th Anniversary Special Presentation: Interview with Toshihiro Nagoshi" url="https://www.otaquest.com/sega-60th-anniversary-interview-with-toshihiro-nagoshi/" access-date="May 28, 2026" website="OTAQUEST" language="en-US" archive-date="June 24, 2021" archive-url="https://web.archive.org/web/20210624205021/https://www.otaquest.com/sega-60th-anniversary-interview-with-toshihiro-nagoshi/" url-status="dead"]

Sega's first-party studios now operate as departments or brands within its research and development structure. Sonic Team functions as Sega's CS2 research and development department,[ref name="4gamer Inemoto 2011"][cite_web title="Producer Takashi Iizuka speaks, &quot;Sonic Generations White Space-Time Space / Blue Adventure&quot; Production Secret Story and Sonic Series 20 Years of Progress" url="http://www.4gamer.net/games/131/G013139/20111227008/" last="Inemoto" first="Tetsuya" date="December 28, 2011" website="[[4Gamer.net]]" language="ja" url-status="live" archive-url="https://web.archive.org/web/20170821045318/http://www.4gamer.net/games/131/G013139/20111227008/" archive-date="August 21, 2017" access-date="May 11, 2026"][/ref] while other internal departments have handled projects such as [[Phantasy Star Online 2]], arcade titles, and core franchise entries. Sega's modern development structure also uses brand identities such as [[Ryu Ga Gotoku Studio]] and Sonic Team for major series, while [[Sega Sapporo Studio]] supports Tokyo-based development teams and handles partial game development.[cite_web url="https://www.sega.co.jp/en/release/220111_1.html" title="SEGA officially opens Sega Sapporo Studio to handle game-development operations in Hokkaido, Japan" date="January 11, 2022" access-date="May 27, 2026" work="Sega"]

<h3 class="wp-block-heading">Owners</h3>

Sega's ownership structure has changed several times since the company's early arcade period.

<li> [[Gulf and Western Industries]] owned Sega from 1969 to 1984.</li>

<li> [[CSK Corporation]] became Sega's largest shareholder after the 1984 management buyout and remained its main owner until the Sega Sammy merger.</li>

<li> [[Sega Sammy Holdings]] has owned Sega since 2004, when Sega and [[Sammy Corporation]] became subsidiaries of the newly formed holding company.</li>

</ul>

<h2 class="wp-block-heading">Company policy and characteristics</h2>

<h3 class="wp-block-heading">Community involvement</h3>

Sega has maintained a visible relationship with its fan communities, particularly around the [[Sonic the Hedgehog series|Sonic the Hedgehog]] franchise. The company has often shown tolerance toward fan-created works, including fan art, animations, music, mods, ROM hacks, and fangames, and has occasionally promoted or acknowledged fan projects through official channels.

Several creators from Sega fan communities have later worked with the company. Christian "Taxman" Whitehead, known for his work on Sonic fangames and ROM hacks, was hired by Sega in 2009 to develop updated versions of [[Sonic the Hedgehog]], [[Sonic the Hedgehog 2]], and [[Sonic the Hedgehog CD]]. Sega later worked with other developers, ROM hackers, artists, and musicians from the fan community on [[Sonic Mania]], which became one of the most notable examples of official collaboration between Sega and long-time Sonic fan creators.

Sega has also recognized fan sites and communities connected to its games. Fan outlets such as SEGAbits, Sega-16, [[The Sonic Stadium]], TSSZ News, and Mega Visions have received official Sega Seals of Quality. The company has also provided community contact channels for fan communities and creators to share work related to Sega properties.

On 17 May 2019, Sega and [[Hardlight]] publicly expressed support for the LGBTQ+ community.[ref name="LGBT"][cite_web url="https://twitter.com/SEGAHARDlight/status/1129402169155887104" title="SEGA HARDlight on Twitter" work="Twitter" date="17 May 2019" access-date="17 May 2026"][/ref]

<h3 class="wp-block-heading">Charity and philanthropy</h3>

Sega has supported charitable work through fundraising, sponsorships, awareness campaigns, and partnerships with charity organizations. Its charitable activity has included support for children's hospitals, Stand Up to Cancer, endangered animal sanctuaries, the Red Cross, Doctors Without Borders, War Child Gaming, and initiatives supporting people with disabilities.

Through Humble Bundle campaigns, Sega has raised more than $2 million for various charities. Its charity work has also been connected to wider industry campaigns that encourage game developers and publishers to support humanitarian, medical, educational, and accessibility-related causes.

<h2 class="wp-block-heading">Notable products</h2>

<figure class="wp-block-image size-large"><a href="https://sonic-city.net/wp-content/uploads/2026/05/Sega-Bell.jpg"><img src="https://sonic-city.net/wp-content/uploads/2026/05/Sega-Bell.jpg" alt="" class="wp-image-57603"/></a><figcaption class="wp-element-caption">[[Sega Bell]] (1957), a rebranded High Top slot machine from Mills and the first product to use the "Sega" name.</figcaption></figure>

<figure class="wp-block-image size-large"><a href="https://sonic-city.net/wp-content/uploads/2026/05/Sega-1000-Jukebox.jpg"><img src="https://sonic-city.net/wp-content/uploads/2026/05/Sega-1000-Jukebox.jpg" alt="" class="wp-image-57604"/></a><figcaption class="wp-element-caption">[[Sega 1000]] (1960), one of Sega's first internally developed products and an early jukebox model produced in Japan.</figcaption></figure>

<figure class="wp-block-image size-large"><a href="https://sonic-city.net/wp-content/uploads/2026/05/Periscope.jpg"><img src="https://sonic-city.net/wp-content/uploads/2026/05/Periscope.jpg" alt="" class="wp-image-57605"/></a><figcaption class="wp-element-caption">[[Periscope]] (1966), Sega's first major electro-mechanical arcade success.</figcaption></figure>

<figure class="wp-block-image size-large"><a href="https://sonic-city.net/wp-content/uploads/2026/05/Pong-Tron.jpg"><img src="https://sonic-city.net/wp-content/uploads/2026/05/Pong-Tron-537x1024.jpg" alt="" class="wp-image-57606"/></a><figcaption class="wp-element-caption">[[Pong-Tron]] (1973), Sega's first video arcade game.</figcaption></figure>

<figure class="wp-block-image size-large"><a href="https://sonic-city.net/wp-content/uploads/2026/05/Zaxxon-scaled.jpg"><img src="https://sonic-city.net/wp-content/uploads/2026/05/Zaxxon-1024x1024.jpg" alt="" class="wp-image-57607"/></a><figcaption class="wp-element-caption">[[Zaxxon]] (1982), one of Sega's best-known early 1980s arcade titles.</figcaption></figure>

<figure class="wp-block-image size-large"><a href="https://sonic-city.net/wp-content/uploads/2026/05/UFO-Catcher.webp"><img src="https://sonic-city.net/wp-content/uploads/2026/05/UFO-Catcher.webp" alt="" class="wp-image-57608"/></a><figcaption class="wp-element-caption">[[UFO Catcher]] (1985), the crane machine series that became one of Sega's most enduring amusement products.</figcaption></figure>

<figure class="wp-block-image size-large"><a href="https://sonic-city.net/wp-content/uploads/2026/05/Mega-Drive-Add-ons.jpg"><img src="https://sonic-city.net/wp-content/uploads/2026/05/Mega-Drive-Add-ons.jpg" alt="" class="wp-image-57609"/></a><figcaption class="wp-element-caption">The [[Sega Mega Drive]] (1988), shown with add-ons including the [[Sega Mega-CD]], [[32X]], [[Mega Modem]], and [[Mega-CD Karaoke]].</figcaption></figure>

<figure class="wp-block-image size-large"><a href="https://sonic-city.net/wp-content/uploads/2026/05/Sonic-1-Title-Screen.png"><img src="https://sonic-city.net/wp-content/uploads/2026/05/Sonic-1-Title-Screen.png" alt="" class="wp-image-57610"/></a><figcaption class="wp-element-caption">[[Sonic the Hedgehog (16-bit)|Sonic the Hedgehog]] (1991), the Mega Drive title that introduced Sega's mascot.</figcaption></figure>

<figure class="wp-block-image size-large"><a href="https://sonic-city.net/wp-content/uploads/2026/05/Virtua-Racing-Arcade-Cabinet-Deluxe.jpg"><img src="https://sonic-city.net/wp-content/uploads/2026/05/Virtua-Racing-Arcade-Cabinet-Deluxe.jpg" alt="" class="wp-image-57633"/></a><figcaption class="wp-element-caption">[[Virtua Racing]] (1992), an important early 3D racing game.</figcaption></figure>

<figure class="wp-block-image size-large"><a href="https://sonic-city.net/wp-content/uploads/2026/05/Sega-Saturn.jpg"><img src="https://sonic-city.net/wp-content/uploads/2026/05/Sega-Saturn.jpg" alt="" class="wp-image-57636"/></a><figcaption class="wp-element-caption">The [[Sega Saturn]] (1994), Sega's 32-bit console and its most successful home system in Japan.</figcaption></figure>

<figure class="wp-block-image size-large"><a href="https://sonic-city.net/wp-content/uploads/2026/05/Print-Club.jpg"><img src="https://sonic-city.net/wp-content/uploads/2026/05/Print-Club.jpg" alt="" class="wp-image-57634"/></a><figcaption class="wp-element-caption">[[Print Club]] (1995), a photo sticker booth line that became popular with Japanese teenagers in the 1990s.</figcaption></figure>

<figure class="wp-block-image size-large"><a href="https://sonic-city.net/wp-content/uploads/2026/05/Dreamcast.jpg"><img src="https://sonic-city.net/wp-content/uploads/2026/05/Dreamcast.jpg" alt="" class="wp-image-57635"/></a><figcaption class="wp-element-caption">The [[Dreamcast]] (1998), Sega's final home video game console.</figcaption></figure>

</figure>

<h2 class="wp-block-heading">Key figures</h2>

<li>[[Martin Bromley]], [[Irving Bromberg]], and [[James Humpert]], founders of Standard Games and Service Games.</li>

<li>[[Richard Stewart]] and Ray LeMaire, early Service Games figures involved in establishing the company's Japanese operations.</li>

<li>[[David Rosen]], founder of Rosen Enterprises and chairman of Sega until 1996.</li>

<li>[[Hisashi Suzuki]], one of Sega's earliest documented employees, who worked at the company from 1962 to 2014. He led Sega's production and engineering work during the company's electro-mechanical arcade period and later became head of research and development.</li>

<li>[[Hayao Nakayama]], former Sega CEO who helped lead the 1984 management buyout of Sega's Japanese assets.</li>

<li>[[Isao Okawa]], chairman of CSK and later Sega, credited with helping stabilize the company during its financial difficulties.</li>

<li>[[Hajime Satomi]], chairman of Sega Sammy Holdings and a central figure in the merger between Sega and Sammy Corporation.</li>

<li>[[Michael Katz]], former president of [[Sega of America]], who helped establish the Genesis' early North American marketing direction.</li>

<li>[[Tom Kalinske]], head of Sega of America from 1990 to 1996, credited with helping Sega become a major competitor in the United States console market.</li>

<li>[[Yu Suzuki]], a leading developer at [[Sega AM2]], known for influential Sega titles such as [[Space Harrier]], [[OutRun]], [[Virtua Racing]], [[Virtua Fighter]], and [[Shenmue]].</li>

<li>[[Yuji Naka]], [[Naoto Ohshima]], and [[Hirokazu Yasuhara]], founding members of [[Sonic Team]] and key creators behind [[Sonic the Hedgehog]] and its early sequels.</li>

<li>[[Toshihiro Nagoshi]], creator and producer associated with Sega titles including [[Daytona USA]], [[Super Monkey Ball]], and the [[Yakuza]] series.</li>

</ul>

<h2 class="wp-block-heading">Legacy</h2>

[[File:Sega Dreamcast arcade machine.jpg|thumb|upright=0.7|A demo [[Dreamcast]] kiosk at the [[Finnish Museum of Games]] in [[Tampere]], [[Finland]], in 2017]]

Sega is regarded as one of the most prolific arcade game producers in the video game industry, having developed more than 500 games, 70 franchises, and 20 arcade system boards since 1981. [[Guinness World Records]] has recognized the company for this achievement.[ref name="guinness_record" /] Sega's arcade division has been noted for its broad range of games, strong sense of spectacle, and long-term commercial success.[cite_web url="https://www.eurogamer.net/articles/2014-02-16-segas-arcade-redemption" title="Sega's arcade redemption" last="Robinson" first="Martin" date="February 16, 2014" website="[[Eurogamer]]" archive-url="https://web.archive.org/web/20140302070346/https://www.eurogamer.net/articles/2014-02-16-segas-arcade-redemption" archive-date="March 2, 2014" url-status="live" access-date="May 25, 2026"] Hideki Sato, who worked on much of Sega's hardware, later identified the company's limited integration between its arcade and console divisions as one of its major weaknesses.[cite_web title="RESEARCH LIBRARY リサーチライブラリ｜一橋大学イノベーション研究センター" url="https://pubs.iir.hit-u.ac.jp/admin/ja/pdfs/show/2232" access-date="2026-05-27" website="pubs.iir.hit-u.ac.jp"]

The [[Sega Mega Drive]], known as the Sega Genesis in North America, is frequently ranked among the best video game consoles in history.[ref name="IGN-top-25"][cite_web url="https://ign.com/top-25-consoles/5.html" title="Top 25 Videogame Consoles of All Time" date="September 4, 2009" website="[[IGN]]" archive-url="https://web.archive.org/web/20180623043900/http://www.ign.com/top-25-consoles/5.html" archive-date="June 23, 2018" url-status="live" access-date="May 24, 2026"][/ref][cite_web url="http://www.gamingexcellence.com/features/15.shtml?page=2" title="The Top Ten Consoles of All Time" last="Sztein" first="Andrew" date="March 28, 2008" website="GamingExcellence" archive-url="https://web.archive.org/web/20120505224057/http://www.gamingexcellence.com/features/15.shtml?page=2" archive-date="May 5, 2012" url-status="live" access-date="May 21, 2026"][cite_web url="http://www.gamedaily.com/articles/galleries/top-10-greatest-consoles/?page=2" title="Top 10 Greatest Consoles" last="Buffa" first="Chris" date="March 5, 2008" website="[[GameDaily]]" archive-url="https://web.archive.org/web/20080309153306/http://www.gamedaily.com/articles/galleries/top-10-greatest-consoles/?page=2" archive-date="March 9, 2008" url-status="dead" access-date="May 24, 2026"] Its success helped challenge Nintendo's dominance in the home console market, strengthened sports game franchises, and helped popularize television-based video games in the United Kingdom.[cite_web url="http://www.usgamer.net/articles/the-true-16-bit-experience-segas-genesis-turns-25" title="Sega Genesis 25th Anniversary: The Rise and Fall of an All-Time Great" last="Parish" first="Jeremy" date="August 14, 2014" work="[[USgamer]]" archive-url="https://web.archive.org/web/20150527115400/http://www.usgamer.net/articles/the-true-16-bit-experience-segas-genesis-turns-25" archive-date="May 27, 2015" url-status="live" access-date="May 16, 2026"] [[Tom Kalinske]] has cited Sega's older-audience marketing and the simultaneous North American and European launch of [[Sonic the Hedgehog 2]] as important innovations, with the latter helping establish the modern "[[street date]]" concept for game releases.[cite_web url="https://venturebeat.com/2014/08/14/sega-genesis-genius-tom-kalinske-on-its-25-year-legacy-battling-nintendo-launching-sonic-and-birthing-the-street-date/" title="Sega Genesis genius Tom Kalinske on its 25 year legacy: Battling Nintendo, launching Sonic, and birthing the 'street date'" last="Grubb" first="Jeff" date="August 14, 2014" work="[[VentureBeat]]" archive-url="https://web.archive.org/web/20151117054029/http://venturebeat.com/2014/08/14/sega-genesis-genius-tom-kalinske-on-its-25-year-legacy-battling-nintendo-launching-sonic-and-birthing-the-street-date/" archive-date="November 17, 2015" url-status="live" access-date="May 16, 2026"] Sega of America's marketing for the Genesis also influenced how later game consoles were promoted.[cite_magazine date="February 1996" title="Pssstt! Wanna Buy a Game System?" magazine="[[Next Generation]]" issue="14" pages="68–79"]

Although the [[Sega Saturn]] was a commercial failure outside Japan, it developed a strong reputation for its software library.[ref name="RetroinspectionSaturn2" /][ref name="1UP Pleasure and Pain"][cite_web url="http://www.1up.com/features/pleasure-pain?pager.offset=0" title="Saturn: The Pleasure And The Pain" last="Sewart" first="Greg" date="August 5, 2005" work="[[1Up.com]]" archive-url="https://archive.today/20140317211403/http://www.1up.com/features/pleasure-pain?pager.offset=0" archive-date="March 17, 2014" url-status="dead" access-date="May 10, 2026"][/ref][ref name="Parish"][cite_web url="http://www.usgamer.net/articles/the-lost-child-of-a-house-divided-a-sega-saturn-retrospective" title="The Lost Child of a House Divided: A Sega Saturn Retrospective" last="Parish" first="Jeremy" date="November 18, 2014" work="[[USgamer]]" archive-url="https://web.archive.org/web/20141215095100/http://www.usgamer.net/articles/the-lost-child-of-a-house-divided-a-sega-saturn-retrospective" archive-date="December 15, 2014" url-status="live" access-date="May 17, 2026"][/ref] Games such as [[Burning Rangers]], [[Guardian Heroes]], [[Dragon Force]], and [[Panzer Dragoon Saga]] have helped sustain the console's later cult following.[cite_magazine url="http://www.edge-online.com/features/how-consoles-die/3/" title="How Consoles Die" date="September 17, 2008" magazine="[[Edge]]" page="3" archive-url="https://web.archive.org/web/20141129171554/http://www.edge-online.com/features/how-consoles-die/3/" archive-date="November 29, 2014" url-status="dead" access-date="May 5, 2026"] Sega's handling of the Saturn has also been criticized, particularly for its launch strategy, limited Western support, and lack of major franchise releases.[ref name="IGN History of Sega" /][ref name="RetroinspectionSaturn2" /] Greg Sewart of [[1Up.com]] described the Saturn as both one of the most troubled and one of the greatest systems in video game history.[ref name="1UP Pleasure and Pain" /]

The [[Dreamcast]] is remembered for being ahead of its time.[ref name="IGNGreat"][cite_web url="https://ign.com/top-25-consoles/8.html" title="Dreamcast is number 8" website="[[IGN]]" archive-url="https://web.archive.org/web/20110830184437/http://www.ign.com/top-25-consoles/8.html" archive-date="August 30, 2011" url-status="dead" access-date="May 7, 2026"][/ref][ref name="Forensic"][cite_web url="http://www.eurogamer.net/articles/dreamcast-a-forensic-retrospective-article" title="Dreamcast: A Forensic Retrospective" last="Whitehead" first="Dan" date="January 2, 2009" website="[[Eurogamer]]" archive-url="https://web.archive.org/web/20141015103108/http://www.eurogamer.net/articles/dreamcast-a-forensic-retrospective-article" archive-date="October 15, 2014" url-status="live" access-date="May 30, 2026"][/ref][ref name="Edge20"][cite_magazine url="http://www.edge-online.com/features/the-ten-best-consoles-the-greatest-gameboxes-from-the-past-20-years/" title="The ten best consoles: our countdown of the greatest gameboxes of the last 20 years" date="September 20, 2013" magazine="[[Edge]]" archive-url="https://web.archive.org/web/20141128181657/http://www.edge-online.com/features/the-ten-best-consoles-the-greatest-gameboxes-from-the-past-20-years/" archive-date="November 28, 2014" url-status="dead" access-date="May 5, 2026"][/ref] Features such as online functionality anticipated later console standards, and the system's software library became known for experimental and arcade-influenced titles.[cite_web url="https://www.ign.com/articles/2012/05/20/sega-a-soothsayer-of-the-games-industry" title="SEGA: A Soothsayer of the Games Industry" last="Redsell" first="Adam" date="May 20, 2012" website="[[IGN]]" archive-url="https://web.archive.org/web/20131012022048/https://www.ign.com/articles/2012/05/20/sega-a-soothsayer-of-the-games-industry" archive-date="October 12, 2013" url-status="live" access-date="May 30, 2026"] Its discontinuation has often been linked to broader changes in the video game industry, including the decline of arcade-centered design and the rise of more conservative blockbuster trends.[cite_book last="Mott" first="Tony" title="1001 Video Games You Must Play Before You Die" year="2013" publisher="Universe Publishing" isbn="978-0-7893-2090-2" page="434" title-link="1001 Video Games You Must Play Before You Die"][cite_web url="http://www.usgamer.net/articles/what-if-dreamcast-had-won" title="What if Dreamcast Had Won?" last="Parish" first="Jeremy" date="September 13, 2014" website="[[USgamer]]" archive-url="https://web.archive.org/web/20141215170706/http://www.usgamer.net/articles/what-if-dreamcast-had-won" archive-date="December 15, 2014" url-status="live" access-date="May 20, 2026"]

Sega's decline as a console manufacturer has been associated with a series of business missteps, including the rushed transition from Genesis add-ons to the Saturn, internal divisions between regional branches, and strong competition from Sony, Nintendo, and Microsoft.[ref name="Eurogamer" /] Former Sega management has also cited the lack of major Japanese role-playing franchises such as [[Dragon Quest]] and [[Final Fantasy]] on Sega hardware as a factor in the company's struggles, particularly in Japan.[cite_web title="ビデオゲームの語り部たち第11部：鈴木久司氏が魂を注いだセガのアーケードゲーム黄金時代" url="https://www.4gamer.net/games/999/G999905/20190302005/" access-date="May 25, 2026" website="[[4Gamer.net]]" language="ja"][cite_web title="『Beep21』創刊3号・特別企画小口久雄氏インタビュー｜Beep21｜note" url="https://note.com/beep21/n/n529331d3af71" access-date="May 25, 2026" website="note（ノート）" date="August 10, 2022" language="ja"]

After the Sammy takeover, Sega reduced some of its internal development activity, increased outsourcing to Western studios, and scaled back parts of its arcade operations. Despite these changes, Sega has remained recognized for the creativity, productivity, and variety of its earlier output.[ref name="IGN History of Sega" /] In 2015, Sega president Haruki Satomi said the company had lost the trust of some older fans during the previous decade and expressed a desire to rebuild the Sega brand.[cite_magazine title="セガゲームス始動！代表取締役社長CEO・里見治紀氏に訊く、新会社設立の意図と将来像" trans-title="Sega Games started! Interview with President and CEO Haruki Satomi, the intention and future image of establishing a new company" url="https://www.famitsu.com/news/201507/20082607.html" last="Hayashi" first="Katsuhiko" date="July 20, 2015" magazine="[[Famitsu]]" language="ja" url-status="live" archive-url="https://web.archive.org/web/20200304041135/https://www.famitsu.com/news/201507/20082607.html" archive-date="March 4, 2020" access-date="May 30, 2026"] During promotion for the [[Sega Genesis Mini]], Sega executive Hiroyuki Miyazaki described the company's appeal as partly rooted in its underdog image.[cite_web title="Sega on Bringing the Old Team Back Together to Create the Genesis Mini" url="https://www.usgamer.net/articles/sega-on-bringing-the-old-team-back-together-to-create-the-genesis-mini" last="Williams" first="Mike" date="June 21, 2019" website="[[USGamer]]" url-status="live" archive-url="https://web.archive.org/web/20190621102813/https://www.usgamer.net/articles/sega-on-bringing-the-old-team-back-together-to-create-the-genesis-mini" archive-date="June 21, 2019" access-date="May 14, 2026"]

In The Sega Arcade Revolution, Ken Horowitz connected Sega's post-1995 arcade decline with wider changes across the arcade industry, while also noting the loss of major creative figures such as [[Yuji Naka]] and [[Yu Suzuki]] after the Sammy takeover. Horowitz concluded that Sega had nevertheless survived its most difficult period and reached its strongest financial position in decades.[ref][[#refHorowitz2018|Horowitz 2018]], p. 282[/ref]

<h2 class="wp-block-heading">Companies founded by ex-employees</h2>

Over the years, a number of former Sega staff members have left the company to establish their own studios. Among the earliest examples was [[Arc System Works]], founded in 1988 by programmer Minoru Kidooka.[cite_web last="Valdes" first="Giancarlo" date="2019-02-26" title="From Guilty Gear to Dragon Ball: The 30-year history of Arc System Works" url="https://gamesbeat.com/from-guilty-gear-to-dragon-ball-the-30-year-history-of-arc-system-works/" access-date="2026-05-12" website="GamesBeat" language="en-US"]

Hiroshi Hamagaki and Tomo Kimura left Sega in October 1990 and founded [[Genki (company)|Genki]], which later became known for the [[Tokyo Xtreme Racer]] series, known in Japan as Shutokō Battle.[cite_web title="株式会社のんき" url="http://www.nonkinet.com/company/kigyouannai.html" archive-url="https://web.archive.org/web/20180829111352/http://www.nonkinet.com/company/kigyouannai.html" archive-date="2018-08-29" access-date="2026-05-12" website="www.nonkinet.com"][cite_web last="Fatnick" date="2026-05-09" title="Import Tuner Challenge" url="https://fatnickindustries.com/Blog/2025/02/09/import-tuner-challenge/" access-date="2026-05-12" website="Fatnick Industries" language="en-GB"]

After working at Sega on [[Virtua Fighter (video game)|Virtua Fighter]] and later at [[Namco]] as a designer on the first two [[Tekken]] games, [[Seiichi Ishii]] founded [[DreamFactory (game company)|DreamFactory]] in November 1995 as a subsidiary of [[Square (video game company)|Square]]. The studio included several former Sega and Namco staff members and developed titles such as [[Tobal No. 1]], [[Tobal 2]], [[Ehrgeiz]], and [[The Bouncer (video game)|The Bouncer]]. DreamFactory separated from Square in 2001 and became independent.[cite_web last="Aetas Inc" title="セガ，ナムコ，ドリームファクトリー……「バーチャファイター」以降，さまざまな環境に身を置いた石井精一氏の足跡ビデオゲームの語り部たち：第38部" url="https://www.4gamer.net/games/999/G999905/20240705060/" access-date="2026-05-12" website="4Gamer.net" language="ja"]

Adrian Stephens and Peter Morawiec of [[Sega Technical Institute]] founded [[Luxoflux]] in January 1997 after Sega of America closed the studio in December 1996. Luxoflux developed [[Vigilante 8]] and the True Crime series before being acquired by [[Activision]] in 2002 and closed in 2010. Stephens and Morawiec had left the company in 2006 and later founded Isopod Labs, which developed [[Vigilante 8 Arcade]].[cite_web last="Gerli" first="Damiano" date="2020-08-20" title="Sega Technical Institute - the history & the games" url="https://genesistemple.com/sega-technical-institute-the-story-the-games" access-date="2026-05-13" website="The Genesis Temple" language="en-US"]

[[Marvelous Entertainment]] was founded in 1997 by Haruki Nakayama, son of then-Sega president [[Hayao Nakayama]]. Haruki Nakayama had been involved in the [[media mix]] development of [[Sakura Wars]]. In 2011, Marvelous Entertainment merged with [[AQ Interactive]] and Liveware to become MarvelousAQL, later renamed [[Marvelous]].[cite_web date="2018-09-18" title="【2.5次元インタビュー】業界をけん引するマーベラス中山晴喜・代表取締役会長が語る「2.5次元ミュージカル」の魅力" url="https://tvfan.kyodo.co.jp/feature-interview/interview/25d-interview/1163075" access-date="2026-05-12" website="エンタメOVO（オーヴォ）"]

[[Artoon]] was founded on August 27, 1999 by [[Sonic the Hedgehog]] co-creator [[Naoto Ohshima]] and executive Yoji Ishii. The studio included former [[Sonic Team]] and [[Team Andromeda]] staff members, including Manabu Kusunoki, art director for the [[Panzer Dragoon]] series. Artoon developed [[Blinx: The Time Sweeper]], worked with [[Mistwalker]] on [[Blue Dragon (video game)|Blue Dragon]], and developed [[Yoshi's Island DS]] for [[Nintendo]]. It became a wholly owned subsidiary of [[AQ Interactive]] in 2005 and was absorbed into AQ in 2010. Around the same period, Ohshima, Ishii, and key Artoon staff formed the successor studio [[Arzest]].

studiofake was founded on September 19, 2000 by [[Sega AM2|AM2]] programmer and director Keiji Okayasu. The studio co-developed [[Odama]] with [[Vivarium (company)|Vivarium]] and was renamed FUN Corporation in May 2022.[cite_web title="Shenmue Director Returns to Work on Shenmue 3" url="https://www.gamespot.com/articles/shenmue-director-returns-to-work-on-shenmue-3/1100-6442243/" access-date="2026-05-12" website="GameSpot" language="en-US"][cite_web title="ファンコーポレーション FUN Corporation" url="https://www.funco.co.jp/news/topics1001" access-date="2026-05-12" website="ファンコーポレーション | FUN Corporation" language="ja"]

Sonic Team planner Kaya Takafumi left Sega in 2001 and founded Signal Talk the following year. The company became known for the online [[mahjong]] title Maru-Jan.[cite_web title="代表挨拶 | 会社情報 | 株式会社シグナルトーク" url="https://www.signaltalk.com/company/" access-date="2026-05-12" website="www.signaltalk.com"]

[[Tetsuya Mizuguchi]], creator of [[Space Channel 5]] and [[Rez (video game)|Rez]] and former head of [[United Game Artists]], founded [[Q Entertainment]] in October 2003 after leaving Sega, alongside former Sega senior vice-president Shuji Utsumi. Q Entertainment developed [[Lumines]], [[Meteos]], and Rez HD. Mizuguchi later founded Enhance, Inc. in 2014, which released [[Rez Infinite]] and [[Tetris Effect]].[cite_web title="Enhance | Video games, Entertainment, Art, XR" url="https://enhance-experience.com/17472" access-date="2026-05-12" website="Enhance" language="en-US"]

[[Yuji Naka]], co-creator of [[Sonic the Hedgehog]], former [[Sonic Team]] president, and Sega executive officer, left Sega during development of [[Sonic the Hedgehog (2006 video game)|Sonic the Hedgehog]] and founded [[Prope]] on May 23, 2006.[cite_web date="2006-05-08" title="Yuji Naka confirmed to be leaving Sega to form Prope" url="https://www.engadget.com/2006-05-08-yuji-naka-confirmed-to-be-leaving-sega-to-form-prope.html" access-date="2026-05-12" website="Engadget" language="en-US"] Sega helped provide startup capital for the studio and retained the option to publish its games.[cite_web last="Gibson" first="Ellie" url="http://www.gamesindustry.biz/content_page.php?aid=16707" title="Sonic creator sets up new studio with help from SEGA" publisher="Games Industry" date="8 May 2006" archiveurl="http://web.archive.org/web/20070301121025/http://www.gamesindustry.biz/content_page.php?aid=16707" archivedate="1 March 2007" access-date="10 May 2026"] In 2018, Naka joined [[Square Enix]], where he created [[Balan Wonderworld]] with [[Arzest]], and later said that Prope had been reduced to a one-person company in April 2017.[cite_web last="Kato" first="Matthew" title="Sonic Creator Yuji Naka Joins Square Enix" url="https://gameinformer.com/b/news/archive/2018/01/22/yuji-naka-has-joined-square-enix.aspx" access-date="2026-05-12" website="Game Informer" language="en"][cite_web last="Wong" first="Alistair" date="2019-03-24" title="Yuji Naka On Prope’s Status: Downsized To One-Person Company" url="https://www.siliconera.com/yuji-naka-on-propes-status-downsized-to-one-person-company/" access-date="2026-05-12" website="Siliconera" language="en-US"]

[[Kotaro Hayashida]], who left Sega to join [[Game Arts]] in 1996, founded the mobile game developer Liber Entertainment in September 2006.[cite_web date="2015-11-01" title="Retrospective: The development of Alex Kidd – SEGA Nerds" url="https://www.seganerds.com/2015/11/01/retrospective-the-development-of-alex-kidd/" access-date="2026-05-12" language="en-US"]

Grounding Inc. was founded on February 7, 2007 by Space Channel 5 producer Mineko Okamura, Panzer Dragoon creator [[Yukio Futatsugi]], and designer Noboru Hotta, a founding member of Q Entertainment. The company developed [[Crimson Dragon]], [[Sakura Samurai: Art of the Sword]], and [[Space Channel 5 VR: Kinda Funky News Flash|Space Channel 5 VR: Kinda Funky News Flash!]]. It has also worked in board games, including [[Machi Koro]].[cite_news last="Barder" first="Ollie" title="Mineko Okamura On Bringing The Funky World Of ‘Space Channel 5’ To Virtual Reality" url="https://www.forbes.com/sites/olliebarder/2020/03/01/mineko-okamura-on-bringing-the-funky-world-of-space-channel-5-to-virtual-reality/" archive-url="http://web.archive.org/web/20220915070219/https://www.forbes.com/sites/olliebarder/2020/03/01/mineko-okamura-on-bringing-the-funky-world-of-space-channel-5-to-virtual-reality/" archive-date="2022-09-15" access-date="2026-05-12" work="Forbes" language="en"][cite_web last="Robinson" first="Andy" date="2025-09-02" title="‘It’s not perfect, but it’s honest’: Why a Rez and Lumines artist quit their company to pursue a dream game" url="https://www.videogameschronicle.com/features/its-not-perfect-but-its-honest-why-a-rez-and-lumines-artist-quit-their-company-to-pursue-a-dream-game/" access-date="2026-05-12" website="VGC" language="en-US"]

[[Yu Suzuki]] founded Ys Net in 2008 and officially left Sega in September 2011.[cite_news title="Yu Suzuki To Leave Current Sega Role This September" url="https://www.gamedeveloper.com/business/yu-suzuki-to-leave-current-sega-role-this-september" archive-url="http://web.archive.org/web/20240525042005/https://www.gamedeveloper.com/business/yu-suzuki-to-leave-current-sega-role-this-september" archive-date="2024-05-25" access-date="2026-05-12" language="en"] Ys Net developed [[Shenmue III]], which was crowdfunded through [[Kickstarter]], and the [[Apple Arcade]] title [[Air Twister]].

Takeshi Hirai, who left Sega alongside Mizuguchi and became chief technology officer at Q Entertainment, founded Neilo in 2010. The studio developed [[Orgarhythm]].[cite_web last="Switch" title="Shenmue Characters Based on Actual People: Susumu Aketagawa, Takeshi Hirai, Akira Nagai, Yoshihito Nishii, Hiroaki Takeuchi, Manabu Takimoto, Hiroshi Tamura, Yoshihiko Tashiro, Hidekaze Yukawa, Kenta Shimizu, Jin Xin Nan, Takashi Matsuda" url="https://www.phantomriverstone.com/2021/05/shenmue-characters-based-on-actual.html" access-date="2026-05-12"][cite_news date="2012-03-28" title="Space Channel 5 dev working on Vita music game" url="https://mcvuk.com/business-news/space-channel-5-dev-working-on-vita-music-game/" access-date="2026-05-12" work="MCV" language="en" issn="1469-4832"]

[[Segagaga]] and [[Astro Boy: Omega Factor]] director Tez Okano established the independent studio HUGA in January 2014. The studio specializes in retro-styled side-scrolling shooters.[cite_web title="About" url="https://www.huga-studio.com/about.html" access-date="2026-03-12" website="■株式会社ヒューガ■" language="en"][cite_web last="Extension" first="Time" date="2026-05-21" title="Best Of 2025: &quot;I Have All The Freedom & No Power&quot; - Astro Boy & Segagaga Director Tez Okano On His Greatest Hits & Going Indie" url="https://www.timeextension.com/features/best-of-2025-i-have-all-the-freedom-and-no-power-astro-boy-and-segagaga-director-tez-okano-on-his-greatest-hits-and-going-indie" access-date="2026-05-12" website="Time Extension" language="en-GB"]

[[Sega AM3|AM3]] member Shoichiro Kanazawa founded the support studio ArAtA in June 2016.[cite_web title="株式会社ＡｒＡｔＡ" url="https://biz-maps.com/item/KL1mD6OgYy" access-date="2026-05-12" website="BIZMAPS" language="ja"]

After leaving Sega in November 2021, [[Toshihiro Nagoshi]] and Daisuke Sato joined [[NetEase]] and formed Nagoshi Studio with several other former Sega staff members.[cite_web last="Ivan" first="Tom" date="2021-10-08" title="Yakuza creator confirms Sega departure as Like a Dragon sequel is announced" url="https://www.videogameschronicle.com/news/yakuza-creator-confirms-sega-departure-as-like-a-dragon-sequel-is-announced/" access-date="2026-03-12" website="VGC" language="en-US"][cite_web title="COMPANY｜会社概要｜Nagoshi Studio" url="https://www.nagoshistudio.com/en/company" access-date="2026-05-12" website="Nagoshi Studio" language="en"] The studio is developing Gang of Dragon.[cite_web last="Hilliard" first="Kyle" title="Gang Of Dragon Is The New Game From Yakuza Creator Toshihiro Nagoshi" url="https://gameinformer.com/the-game-awards-2025/2025/12/11/gang-of-dragon-is-the-new-game-from-yakuza-creator-toshihiro" access-date="2026-05-12" website="Game Informer" language="en"]

<h2 class="wp-block-heading">Gallery</h2>

<figure class="wp-block-image size-large wikigallery"><a href="https://sonic-city.net/wp-content/uploads/2026/05/Sega_1960s_logo.svg"><img src="https://sonic-city.net/wp-content/uploads/2026/05/Sega_1960s_logo.svg" alt="" class="wp-image-57767"/></a><figcaption class="wp-element-caption">Logo used before 1976</figcaption></figure>

<figure class="wp-block-image size-large"><a href="https://sonic-city.net/wp-content/uploads/2026/05/SEGA-Asia-logo.svg"><img src="https://sonic-city.net/wp-content/uploads/2026/05/SEGA-Asia-logo.svg" alt="" class="wp-image-57780"/></a><figcaption class="wp-element-caption">Logo used in Japan and the rest of Asia</figcaption></figure>

</figure>

<h2 class="wp-block-heading">References</h2>

[reflist]