- Sega’s chief operating officer, Shuji Utsumi, said the company is considering bringing more of its profitable intellectual property to other platforms.
- That includes movies, mobile phones and the gaming platform Roblox, Utsumi told CNBC.
- Sega is looking to capitalize on the success of its hit movie Sonic the Hedgehog and Sonic the Hedgehog 2.
A still from “Sonic the Hedgehog 2” by Paramount.
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Following Sega’s blockbuster adaptation of the classic Sonic the Hedgehog gaming franchise to the big screen, the company has suggested that it wants to replicate that success with other successful video games in its arsenal.
Speaking with CNBC at the Web Summit tech conference in Lipson, Portugal, on Tuesday, Sega’s chief operating officer, Shuji Utsumi, said the company is considering bringing more of its lucrative intellectual property to other platforms, including movies and gaming platform Roblox.
“Sonic is making a comeback,” Utsumi told CNBC’s Arjun Kharpal, referring to the success of the Sonic the Hedgehog adaptations at the box office.
Sonic the Hedgehog grossed $306.8 million at the box office, becoming a huge win for the franchise even after initial angry fan backlash over the iconic character’s poor presentation the first time Sega revealed him to the world.
Sonic the Hedgehog 2 fared better, earning $405.4 million at the box office.
Now, Sega is looking to translate that success into other adaptations of the game. This may not just mean movies, Utsumi cautioned, adding that the company is looking for other ways to get its intellectual property rights to more consumers.
This could include bringing the Sonic experience to the Roblox gaming platform, where millions of people gather to build games and communicate with each other in massive online communities, as well as mobile as well.
The company recently completed its acquisition of Rovio, maker of the Angry Birds mobile game, for €706 million ($767.9 million).
“We have other major IP addresses,” Utsumi said. “We are considering reviving other classic IPs as well.”
Utsumi highlighted the Yakuza beat ’em up game and the Persona role-playing game franchise as examples that could be adapted.
This comes as Sega prepares to launch a new Yakuza game, Dragon: Infinite Wealth, next year. The company is also launching two new Persona games in 2024 as well.
“As I say, we’re trying to be in as many different categories, different areas as Roblox movies,” Utsumi said. “All these IPs could be somewhere other than gaming soon.”
Sega recently released the latest version of its Yakuza game. Collectively, the Yakuza game series has sold 21.1 million units since its debut in 2005, according to Sega. Persona 5, the latest game in the series, has also seen great success with over 9 million copies sold worldwide.
Yakuza is currently only available on PlayStation, Xbox, and PC. Platforms. Persona is currently only available on Xbox, PlayStation, PC, and Nintendo Switch.
Sega is also looking for more acquisitions as it seeks to expand its ownership of game studios, Utsumi said.
Utsumi suggested that the company will look to find more acquisition targets as opportunities emerge in the market.
“As a Sega Sammy entity, we are acquiring some companies. We just made an announcement [to buy Rovio]. “We are still looking for opportunities to grow.”
Utsumi said European game studios are currently “struggling” as they work to recover from the sales slump that followed the Covid-19 pandemic, as gamers emerge from lockdowns around the world and high inflation has made people less willing to pay exorbitant prices for the latest Titles.
“Japanese studios are doing well. European studios are suffering,” Utsumi said. “I’d say all European developers are having a tough time now. Before, it was kind of a bubble. Now, it’s time to adapt.”
However, he struck an optimistic note for the future: “I think it will come back. As long as you have strong development studios and strong IPs as well.”
Sega isn’t the first company looking to replicate the success of its popular entertainment franchises on other forms of media. Sony, Sega’s main Japanese gaming rival, has had great success with its Spider-Man film series, which the company has turned into several top video games.
Utsumi also addressed rumors of Microsoft’s interest in purchasing the company.
The Redmond, Washington-based tech giant reportedly considered acquiring Sega as well as Bungie, the studio originally responsible for Halo, The Verge reported earlier this year, citing internal documents from a hearing in an FTC lawsuit seeking to block… Microsoft’s acquisition of Activision Blizzard.
Sega’s chief operating officer denied the suggestion that Sega, which is owned by Sega Sammy Corporation, the company formed from the merger of Sega and Sammy Corporation in 2004, had any intention of selling to another party.
“Many companies are interested. We feel honored,” Utsumi told CNBC.
“We have intellectual property and attractive potential. Owner-owned businesses. Strong owner. I don’t think this type of transaction will happen.”
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