Sega revs 1990s gaming glory in Japan
Sega launches its first flagship merchandise store in Japan
On Friday, Sega opened a flagship merchandise shop in Japan, following a similar launch in Shanghai earlier this year. The move signals a revival strategy for the brand, which has not sold game consoles since the Dreamcast was discontinued in 2001.
New retail strategy
Chief operating officer Shuji Utsumi told AFP that the company sees expanding opportunities both domestically and globally. “We’ve struggled for a while, but now we are coming back,” he said. Utsumi emphasized Sega’s goal of global expansion rather than focusing solely on the Japanese market.
Historical context
- In the 1980s and 1990s, Sega was a dominant player, synonymous with noise-filled arcades and home consoles.
- Key franchises included the beat‑em‑up “Streets of Rage” and the ninja series “Shinobi.”
- Financial difficulties emerged in the 2000s as online multiplayer titles from U.S. publishers, such as “World of Warcraft,” gained a lead.
Revitalizing legacy franchises
After exiting the hardware business, Sega’s game portfolio became “a little stale” according to David Cole of DFC Intelligence. However, the company is tapping into the nostalgia of consumers who grew up with the 1990s era, now in their 30s to 40s and even older.
- These older fans are introducing classic titles to their children.
- Potential revenue streams include new video‑game movies, store expansions, and theme‑park attractions.
Recent successes include the film “Sonic the Hedgehog 3,” which topped the North American box office in December and followed the original 2020 live‑action movie. The franchise’s popularity aligns with the broader trend of video‑game adaptations, echoed by “The Super Mario Bros. Movie,” which became the second‑highest‑grossing film of 2023.
Other adaptation projects
- “Shinobi” is being turned into a film.
- The “Yakuza” game series has been adapted into a television series.
- Potential collaborations for the cult franchise “Persona” are currently under discussion.
Strategic moves into mobile gaming
In 2023, Sega acquired Finland’s Rovio, creators of “Angry Birds,” as part of its expansion into the mobile gaming market.
Long‑term focus
While “gamers’ behavior has changed” since Sega’s heyday, Utsumi emphasises the importance of developing high‑end, large‑scale titles that foster brand loyalty.
Sega is pursuing what it calls a “Super Game,” a project with international scope that may incorporate communication, social, and potentially AI features. The company acknowledges the fierce competition in the market and the need to build a dedicated fan base.
Revenue contributions
Sega Sammy, the parent company, also produces arcade and gambling machines, a sector experiencing decline. Consequently, Sega’s entertainment business is deemed the real growth opportunity for the conglomerate. In May, the company noted that the “Sonic” intellectual property had boosted both game sales and licensing revenue.
Consumer testimonials
- 19‑year‑old American Danny Villasenor said, “I’ve always liked Sega. I grew up around their games. They’re pretty retro, but have evolved well.”
- 24‑year‑old William Harrington from Los Angeles shared, “My father introduced me to older games, so Sega feels like childhood.”
