Sega’s Flat-Rate Game Plan Poised to Disrupt the Market

The gaming industry is simmering: Insiders rumor that Sega is working on a Netflix-like subscription service for video games. While there are no official confirmations yet, there are increasing signs of this strategic move by the Japanese gaming giant.

New player in the subscription market?

Sega, once a gaming industry giant, may be planning to get back into big business. The Japanese game maker is considering launching its own subscription service for video games, similar to Netflix for films and series.

The market for game subscriptions is already well occupied. Services like Microsoft’s Xbox Game Pass and Sony’s PlayStation Plus have become established, offering gamers access to a wide range of titles for a monthly fee. Other publishers such as Electronic Arts and Ubisoft also operate their own subscription models. Sega would have to assert itself in this competitive market.

Sega’s plans are still in the early stages

Shuji Utsumi, President and COO of Sega, confirmed to the BBC news channel that the company is definitely working on an interesting plan:

There is something we are thinking about – and discussing – that we cannot disclose at this time. Shuji Utsumi, President and COO of Sega

This cautious wording suggests that the plans are still at an early stage. Utsumi sees its own subscription service as an opportunity to “make Sega shine” again. The company, which was considered a major rival to Nintendo in the 1990s with Sonic the Hedgehog, had lost its importance in recent years. With its own streaming offer, Sega could try to build on old successes and reposition itself in the digital age.

Evidence of Sega’s plans

One possible indication of Sega’s plans is the recent removal of some Sega titles from other services’ libraries. Classics like the “Sega Mega Drive Classics” collection, “Sonic the Fighters” or “Virtua Fighter 2” are no longer available everywhere.

Sega’s turbulent history

• 1960: Founded as Service Games, began producing coin-operated machines
• 1983: Breakthrough with the introduction of the SG-1000, Sega’s first home console
• 1990s: Heyday with the Mega Drive (known as the Genesis in North America) and mascot Sonic the Hedgehog
• 2001: Withdrawal from the console business despite innovative consoles such as the Sega Saturn and the Dreamcast
• Today: Focus on software development