Latest news with #SegaCorporation
Yahoo
24-07-2025
- Entertainment
- Yahoo
What Ever Happened to Video Game Maker Sega?
K.K. Sega (Japanese: Kabushiki Sega), better known in Europe and the U.S. as Sega Corporation, was the third major provider of video games and consoles alongside Nintendo and Sony from the late 1970s to the late 1990s. However, the history of the now Japanese company actually began decades earlier, not in Japan, but in the U.S. Today, Sega is focusing on its own rich tradition, which is now set to be made future-proof. When Shuji Utsumi announced a renaissance of Sega at the Game Awards 2024 in Los Angeles, the joy among the brand's legions of fans was boundless. 'Gamers loved Sega because we showed them a new style, a new attitude, and a new lifestyle,' said the CEO of Sega America and Sega Europe. They have some great pillars, including 'Sonic,' 'Yakuza,' and 'Persona.' 'At the same time, we also have other titles that perfectly reflected Sega's style, attitude, and context. And I think players will love it if we do it right. It will be a challenge–expectations are high–but if we master this, we can become Sega again,' Utsumi promised. In fact, Sega's history goes back much further than 'just' to 'Sonic,' 'Yakuza,' 'Persona' (1990s), or even older iconic video games like 'Space Fury,' 'Monaco GP,' or 'Subroc.' A history that was extremely eventful, so much so that it is sometimes even described as 'confusing.' To do justice to each of these twists would probably require a book or at least a dissertation. Therefore, this text condenses the events, but all crucial facts are, of course, considered. Sega's Cradle Is in Hawaii Sega, as we know it today, originated from a company founded in 1940. But not, as one might expect, in Japan by Japanese people, but by three Americans: Martin Bromley, Irving Bromberg, and James Humpert. The trio laid the foundation for what would later become Sega in Honolulu, Hawaii, then still under the name Standard Games. The name already suggests that they saw a flourishing business field in leisure entertainment, which they wanted to serve with coin-operated machines. Initially, they had the U.S. soldiers stationed in Hawaii in mind. Eleven years later, in 1951, the company relocated to Tokyo, as the U.S. Congress had meanwhile banned the installation of slot machines on military bases. This decision is known in U.S. economic history as the 'Gambling Devices Transportation Act.' Entertainment for U.S. Soldiers Overseas At this time, the U.S. was at war with Korea, so the contingents of U.S. bases in the Pacific had been significantly increased. This also applied to Japan, which had been under U.S. occupation since the end of World War II. By the end of 1945, the U.S. had stationed more than 350,000 soldiers there, who represented another promising clientele for the three entrepreneurs. The GIs, far from home in a country whose language was completely foreign to them, were looking for entertainment. And Bromley and Co. wanted to offer their compatriots this with imported coin-operated machines. Additionally, traditionally oriented Japan was gradually opening up to the American way of life. Many renowned U.S. companies from all economic sectors were vying for this new market. The Japanese economy itself had also recognized the opportunities here, and many domestic companies were seeking foreign partners, primarily from the U.S. Thus, the vending machine operator Nihon Goraku Bussan, founded in 1951, entered into a partnership with Bromley just a year later, whose company had been called Service Games of Japan since the move to Japan. In 1960, they founded the subsidiary Japan Entertainment Trading Company, which soon became one of the largest providers of jukeboxes, slot machines, and vending machines. A Fourth American Lays the Foundation for Sega And another American entered the scene. David Rosen was a U.S. soldier stationed in Japan who decided to stay there after his service. Rosen had developed an appreciation for Japanese culture and, like Bromley, recognized the market opportunities. So, in 1954, he founded Rosen Enterprises, which initially sold photo booths but soon also imported used slot machines from the U.S. While the Japanese company received a license for U.S. military bases, the intended expansion to the entire Japanese market initially seemed hardly possible. Japan, in the midst of reconstruction, had a 6.5-day workweek. The Japanese Ministry of Trade considered distraction through slot machines counterproductive and denied Rosen the necessary license to install the machines. It wasn't until 1957 that he managed to convince the authorities that entertainment and economic growth were not mutually exclusive. Rosen believed that workers who could relax through entertainment in their limited free time would actually fuel the economic upswing. His argument was so convincing that he was eventually granted the license. And Rosen was proven right. The slot machine market was now booming, and Rosen Enterprises soon dominated the Japanese market. Both Rosen and Bromley recognized that a merger of the market leaders–Rosen Enterprises in slot machines, Nihon Goraku Bussan in jukeboxes–would benefit both companies. Read also: Most Valuable Video Game Sold for $2 Million The Modern Sega Emerges Initially, the plan was to operate under the name Rosen Enterprise. After all, it was Rosen who held the necessary license. However, the former GI had enough sense and heart to realize that this would have further hurt the Japanese spirit, already deeply wounded by the devastating consequences of World War II. Therefore, they decided on the name Sega Enterprises Ltd., based on the initials of Service Games. Thus began the actual history of Sega in July 1965. Now that the company also had production facilities, they began developing their own machines. The first hit the market in 1966, called 'Periscope,' and was based on the idea behind the game known to us as 'Battleship.' 'Periscope' became an international success, which in turn attracted the attention of the U.S. company Gulf and Western. For three years, the Americans courted Sega, and in 1969, the acquisition finally took place. Sega was now a 100% Gulf and Western subsidiary but was able to retain both its name and logo, as well as Rosen as the chairman of the board. In 1983, Sega Also Entered the Console Market In the following years, Sega continued to grow steadily–including through the acquisition of the U.S. competitor Gremlin–and regularly released more arcade games. These included titles like 'Space Attack,' 'Monaco GP,' 'Eliminator,' 'Pulsar,' and 'Frogger.' All these games were well thought out and executed, giving Sega a reputation as a provider of high-quality games. According to 'Historycorner,' 'Space Fury' was 'the first arcade game to offer colored vector graphics and voice synthesis. The player controlled a spaceship and had to fend off attacks from enemy ships. The spoken announcements, such as 'Prepare for battle!' had an almost hypnotic appeal. And the 1982 follow-up 'Subroc' gave Sega a unique selling point, as it was the first commercial video game in stereoscopic 3D format. Around the same time, Sega responded to a new trend that had begun in the early 1980s and was growing. Companies like Atari had already celebrated initial successes with game consoles. Sega now picked up on this trend and developed versions of its most successful arcade games for the most common game consoles. And it wasn't long before Sega itself appeared on the market with a console. SG-1000, Sega's First Own Game Console On July 15, 1983, Sega introduced its first own game console, the SG-1000. However, it had to compete on the very same day with the 'Nintendo Entertainment System' released by Nintendo–better known as NES. The SG-1000 was not destined for great success, partly due to the strong competition and partly due to the high price Sega demanded in markets outside Japan. Additionally, 1983 saw the preliminary collapse of the video game industry, known as the 'Video Game Crash.' As a result, numerous companies, including the former market leader Atari, Inc., went bankrupt. This development was only halted in 1985 when Nintendo's NES console and the now legendary game 'Super Mario Bros.' also appeared on the American market and became major sales hits there. Read also: Why the 'Power Glove' for the NES Flopped 35 Years Ago Back to the Roots Such successes were only partially granted to the consoles that followed the SG-1000. Successors like the 'Sega Mega Drive' or later 'Sega Saturn' sold excellently, so much so that Sega dominated the North American and thus the world's most important gaming market in early 1994. But the 'Mega Drive' was already six years old at that point and had long reached its expiration date. Sega's attempts to modernize the console were not well received by fans. As a result, the company lost more than 30% market share within twelve months. This was not least due to the successor, the 'Sega Saturn.' While it initially sold brilliantly, it had to account for its enormous technical complexity. Sega simply had too few games available that were compatible with the console. However, this was far from the peak of the disaster. In the 1999/2000 fiscal year, Sega had to report a loss of $400 million. This was only partly due to the 'Sega Saturn' successor introduced at the end of 1998, the Dreamcast console. Rather, it was the imbalance between revenue and the excessively high development and production costs that had brought Sega to the brink of collapse. They simply failed to offer something competitive against the likes of Sony's 'PlayStation' and Nintendo's 'GameCube.' Mega Drive Is Today Sega's Best-Known Console Thus, in the top 20 best-selling game consoles to date, only one Sega model, the 'Sega Mega Drive,' is found, and it ranks just 19th. No wonder, then, that they exited the game console market as early as 2004. In the same year, they merged with the Sammy Corporation, then the leading manufacturer of 'Pachinko' machines, to form Sega Sammy Holdings. A 'Pachinko' is a gambling machine similar to a 'pinball' machine but with an automatic payout like a slot machine. Sega now focused exclusively on developing and producing games for the various platforms of the competition. Thanks to the aforementioned merger, the company was able to report a 31% increase in profit to $577 million as early as 2006. Consequently, this focus has hardly changed to this day and will not change in the future. There will definitely be no more Sega consoles, Utsumi confirmed. Instead, they will invest in their own classics like 'Golden Axe,' 'Virtua Fighter,' or 'Jet Set Radio.' 'We will introduce these games to a new audience rather than just treating them as museum pieces,' said the CEO of Sega America and Sega Europe. Sega's iconic legacy is to be made future-proof. So, we can look forward to it. The post What Ever Happened to Video Game Maker Sega? appeared first on TECHBOOK.
Yahoo
03-07-2025
- Business
- Yahoo
Sega Corporation's Utsumi on Business Outlook & Strategy
Shuji Utsumi, President & COO of Sega Corporation, and CEO of Sega America & Europe, discusses his view for the company's business plans and growth strategy, and his plans to revive the gaming giant. He says he was impressed with Nintendo Switch 2 sales volumes and "hope the trend continues" to boost business for gaming product makers like Sega. He joins from the sidelines of startup conference, IVS, in Kyoto, and speaks with Haslinda Amin on "Insight with Haslinda Amin". Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
03-07-2025
- Business
- Bloomberg
Sega Corporation's Utsumi on Business Outlook & Strategy
Shuji Utsumi, President & COO of Sega Corporation, and CEO of Sega America & Europe, discusses his view for the company's business plans and growth strategy, and his plans to revive the gaming giant. He says he was impressed with Nintendo Switch 2 sales volumes and "hope the trend continues" to boost business for gaming product makers like Sega. He joins from the sidelines of startup conference, IVS, in Kyoto, and speaks with Haslinda Amin on "Insight with Haslinda Amin". (Source: Bloomberg)
Time of India
03-05-2025
- Entertainment
- Time of India
WAVES Summit 2025: Content, culture and connectivity powering the next play of gaming
On the second day of WAVES Summit 2025 , Shuji Utsumi , president and chief operating officer, representative director, Sega Corporation, offered a grounded perspective on the forces propelling the growth of video games. He signaled a broader shift in global gaming dynamics—one that increasingly includes India as a key player. He pinpointed three fundamental drivers: technological innovation, evolving business models, and the pervasive influence of gaming culture . "First of all, the video game market has grown rapidly and become huge," Utsumi stated, presenting data that illustrated gaming's dominance over the movie and music industries—USD 184 millions, globally in 2023. He charted the technological advancements, from the pixelated realms of 1980s consoles to the breathtaking realism of current-generation hardware, emphasising the exponential surge in processing power. The advent of the internet, Utsumi noted, forged the infrastructure for global multiplayer experiences, while mobile devices democratised access, creating an unprecedentedly vast player base. The transformation of business models, shifting from arcade dominance to retail sales, digital downloads, subscription services, in-game advertising and the burgeoning market for game-related merchandise, has been a crucial catalyst. "These evolutions give video game companies more chances to monetise. Various players should be more engaged in the industry," Utsumi explained. Beyond commerce, gaming has firmly established itself as a significant cultural phenomenon. "The video game has grown up to be a mass culture now it strongly influences people's lifestyle and mindset," Utsumi asserted, showcasing the diverse ways individuals engage with game-inspired music, live concerts, fashion trends like cosplay and the rise of influential content creators on platforms such as YouTube, TikTok, and Twitch. Utsumi observed a fundamental shift in player motivations, with modern gaming serving as a platform for social connection, identity exploration through virtual avatars, and the pursuit of recognition within gaming communities and streaming audiences. This cultural elevation has reshaped the landscape of intellectual property. Sega's Utsumi highlighted that games have strategically embraced a transmedia approach, extending its beloved game franchises into films, animations, theme parks, merchandise and concerts. Utsumi cited the box-office success of the Sonic the Hedgehog movie franchise and the Like a Dragon TV series on Amazon Prime as prime examples of how game IPs are now driving significant success in other entertainment sectors, reversing the traditional flow of adaptation. Turning his focus to India, Utsumi articulated the nation's compelling allure, citing its massive and expanding market, coupled with a deep-seated love for entertainment, including games. He also acknowledged the established digital payment infrastructure and supportive governmental policies. Furthermore, India's rich cultural heritage, evident in its thriving film industry and its substantial pool of talented creators and programmers, position it as a fertile ground for game development. "Given those points in theory, India has a solid foundation for great game development," he concluded, suggesting that India's unique blend of technical prowess and cultural richness ideally positions it to spearhead the next wave of video game evolution, particularly with the emergence of artificial intelligence. Following Utsumi's address, a panel of industry experts in the Indian gaming ecosystem joined him: Manvendra Shukul , chief executive officer and founder of Lakshya Digital; Bimal Julka, chairperson for the Federation of Indian Fantasy Sports; Sean Hyunil Sohn, chief executive officer of Krafton India and Nitish Mittersain, founder and managing director of Nazara Technologies. The panel was moderated by Keiko Hagihara Bang, chief executive officer of Bang Media Group. The Indian gaming market, estimated at approximately USD 1.5 billion in the past year with projections reaching USD 3.6 billion by 2030, fueled by a rapidly growing active gamer base. Shukul conveyed his strong optimism, noting the accelerated "hockey stick" growth trajectory in recent years, driven by the increasing recognition of game development as a viable career path and India's potential as a cost-effective hub for high-quality global content creation. He emphasised the rising number of skilled Indian game developers as tangible evidence of this burgeoning potential. Nazara Technologies' Mittersain expressed confidence that India's deep talent pool and the adoption of innovative technologies like AI will expedite the success of Indian-developed games on both national and international stages. Krafton India's Sohn provided a comparative perspective, drawing parallels with South Korea's swift rise in the gaming industry, propelled by widespread broadband access and proactive government investment. He suggested that India, by leveraging its unique strengths, could similarly leapfrog established players, with AI presenting a significant opportunity for accelerated growth. However, the discussion also addressed the inherent complexities. Julka underscored the regulatory challenges stemming from the absence of a unified national policy, with individual state governments voicing concerns regarding the potential psychological impact of gaming on younger demographics. He advocated for a balanced regulatory framework that nurtures industry growth while addressing ethical and moral considerations. The issue of cultural resistance, particularly parental anxieties surrounding gaming's influence on education and the potential for excessive engagement, was also explored. Utsumi observed that while initial skepticism often accompanies rapid industry growth, societal perspectives tend to evolve towards a more balanced and rational understanding as the sector matures. Shukul drew parallels with the historical evolution of gaming acceptance in the US, suggesting that India is on a similar, potentially accelerated, path as the current generation of gamers transitions into parenthood. Sohn also highlighted the existing capacity-building challenges, noting the relative scarcity of experienced senior-level engineering talent for game development in India compared to more mature gaming markets like Korea. He stressed the importance of encouraging students to view gaming as a legitimate and promising career path. Julka also raised the persistent and complex legal debate surrounding the distinction between "game of chance" and "game of skill," a classification that significantly impacts the regulatory landscape. Shukul, however, countered that this distinction is often artificially applied to differentiate between real money gaming and mainstream video games, with the fundamental difference lying in the "cash in, cash out" model versus a "cash in, entertainment out" model. The challenges of monetisation within the Indian market, was initially dominated by casual mobile games with a lower inclination for paid content. Mittersain expressed optimism that this trend is gradually shifting as higher-quality, more engaging content becomes available, leading to increased consumer willingness to invest. The panel was asked to pinpoint the single most transformative factor for the global gaming industry. Shukul predicted that the integration of AI into the very process of game design would revolutionize the creation and experience of games. Julka emphasised the enduring significance of human creativity and content generation. Sohn and Mittersain both underscored the potential of truly immersive gaming experiences facilitated by advancements in VR/AR technology, envisioning a future where players seamlessly embody characters within virtual worlds. Utsumi echoed the transformative potential of AI but also stressed the crucial role of user interface (UI) innovation, suggesting that intuitive and deeply engaging interfaces will be instrumental in unlocking entirely new gaming paradigms. Despite the challenges that India's gaming industry currently faces, the panel's discussion highlighted a promising future. They emphasised that India's large and increasing market, its diverse culture, a rising number of skilled professionals, and the opportunity to leverage advanced technologies such as AI, all suggest that the nation has the potential to move beyond being just a consumer of games and become a major producer in the global gaming landscape.
