Now, more than two decades after the closure of the Sega Channel, Sega is once again interested in taking another crack at the subscription service business model. In an interview with the BBC, Sega COO Shuji Utsumi stated that the Japanese game giant was actively evaluating the idea oflaunching its own Netflix-style video game subscription service. “We are thinking something and discussing something,” Utsumi added, “that we cannot disclose right now.” While details on the matter are scant, this Sega subscription service, if it ever becomes realized, could have significant implications on the current gaming market.
Sega Launching Its Own Subscription Service Could Shake Up the Gaming Landscape
Compared to the film industry, subscription services don’t play a very large role in the video game landscape. With that being said, there are a handful of popular services that have taken off in the last 5 or so years. The first-party console manufacturers, Xbox, PlayStation, and Nintendo, have all released subscription services of their own, with Xbox Game Pass perhaps being the most prominent of the three. A few third-party publishers, such as EA and Ubisoft, have entered the market, as well. However, since thesethird-party subscription servicesonly contain games from one company, and not other developers, they aren’t nearly as popular as their first-party equivalents.
A Sega Subscription Service Has the Potential to Be Compelling in Several Ways
If Sega decides to offer a subscription service of its own, it will face some stiff competition from services like Xbox Game Pass, PlayStation Plus, and Nintendo Switch Online. Platform holders are able to offer consumers hundreds upon hundreds of games from both internal and external developers, something that a single third-party publisher like Sega cannot provide. However, given how strong its lineup has been these past few years, a subscription service from the Japanese company may be able to attract a wider audience compared to EA Play or Ubisoft+. Being able to playgames likePersona 6,Sonic Frontiers 2, andYakuza 9on day-one for only $15 to $20 a month is a compelling value proposition that some will not be able to turn down.
In addition to new releases, a hypothetical Sega subscription service may also include a selection of older games. Sega has a lot of classic titles in its portfolio, such asAltered Beast,Persona 2, Phantasy Star 4,andJet Set Radio Future, which could be great additions to the library of an Xbox Game Pass-like service. This nostalgia-driven approach can help carry Sega’s proposed subscription service to greater heights, which is potentially what the company is banking on. While this is purely speculation, Sega may intend to add the50+ retro games it delisted this monthto this planned subscription service.
Sega launching its own Netflix-style service may also have some major ramifications for Xbox in the long run. The Japanese publisher has been a major supporter of Xbox Game Pass in recent years, having releasedtitles likePersona 3 Reload,Like a Dragon Gaiden, andFootball Manager 23into the service on the same day they came out. However, ifSegadecides to directly compete with Xbox on this front, fans will likely see fewer and fewer of its games hit Game Pass on day one.
