SEGA sets out IP strategy to build $900m ‘Super Game’

Sega parent SegaSammy’s latest set of results include an intriguing plan to create a game, or series of games, that live up to a new ‘Super Game’ billing, with the target being ¥100bn of revenue ( around $900m). That’s most of what Sega made from consumer sales (games) across the whole of 2021: ¥135.7bn ($1.24bn).

The plan is described as a medium term one, in order for Sega to ‘become a global leading contents provider’ and is planned to take five years to achieve, putting the release of such a game/s in 2026 at the earliest. Such titles are to make up a significant portion, around a third, of all of parent company SegaSammy’s revenues by FY30.

Under the somewhat confusing title ‘Challenge toward creating large-scale global titles’ the company notes that there are three key components to the super game. The first is “Development of new FPS title at European studio,” which must refer to the untitled FPS being made at Creative Assembly. Although it’s not clear if this is a ‘Super Game’ or just a stepping stone to such a title.

Also referenced is the utilisation of IP assets, which looks to refer to making use of existing Sega IP as part of the new title. Thoughts of a Sega character driven shooter IP, like a battle royale with an incredible Smash Bros style cast come to mind, but that’s pure speculation. And it again notes that “create aimed for three to five years from now.”

Frankly, it’s all a little vague at present, check out the document for yourself, but what’s certain is that Sega is looking to do much bigger things over the next few years, and these will, to some degree, involve existing IP. That sounds eminently sensible, as Sega’s IP is an immense resource that is unarguably underutilised.

The results report also notes another key strategy of turning existing IPs into global brands, giving the example of the Sonic movie, it’s planned sequel, and its Netflix animation series.

Coming back to predicted future earnings, the company sees domestic mobie and amusement machines (Pachinko) to be fairly flat. With predicted growth coming from existing IP, such as Sonic, Persona, or Total War, and the new ‘super game’ category. Even then it admits that the new super game will have low profitability at the outset, but that will grow with time.

More immediately Sega is looking to upcoming titles Humankind, Total War: Warhammer III, Lost Judgement plus FTP expansion Phantasy Star Online 2: New Genesis, to boost consumer spending on games in 2022 to ¥140bn, up from ¥135.7 ($1.24bn) in 2021.

Breaking down the ¥135.7, SegaSammy notes that there as a fairly even split between overseas and domestic income. Although full game titles, both new and catalogue, made up the vast majority of its overseas sales, while FTP spending dominated its Japanese market. Full game unit sales by IP were also provided. Sonic sold 4.4m, Total War 4m, Football Manager 3.8m, and Persona 3m.