Sega is actively pursuing a strategy to broaden the appeal of its intellectual property beyond its existing player base, a move influenced by a transmedia approach pioneered by companies like Disney. Sega President and COO Shuji Utsumi stated that the company now considers individuals who engage with its franchises through means other than playing the games—such as merchandise, concerts, or stage shows—as valuable fans.
"In recent years, the number of fans of our games who don’t actually play them has increased," Utsumi noted in an interview with Nikkei. He pointed to the Like a Dragon series, where merchandise sales are strong, with a significant portion purchased by women who may have become fans through YouTube channels and streams rather than direct gameplay. "Even if these people haven’t played the games, we consider them to be fans and gamers in our eyes," he added, emphasizing that transmedia increases pathways to fandom and can foster even more engaged fans.
This expansion into new mediums and extensive merchandising is a long-standing strategy in Japanese entertainment. Utsumi sees this as a key growth area, particularly as the gaming industry faces challenges such as rising development costs and supply chain issues. He cited the global success of anime and its impact on the Japanese music industry as a model for how associated music artists and songs gain visibility. Sega aims for a similar effect with its merchandising, generating revenue and introducing its intellectual property to new audiences, potentially leading them back to the original games.
Utsumi's transmedia vision is informed by his prior experience at Disney Interactive Asia, where a clear program of IP licensing around movie releases was implemented to maximize profits. He described a system of developing calendars around film releases and building long-term relationships with licensees to create merchandise such as clothing, stationery, and toys.
This approach was also behind Sega's now-canceled "Super Game," a game-as-a-service initiative intended to unlock broader possibilities for its properties. Utsumi explained that while the company remains a game developer, the scale of investment and operation for the Super Game grew significantly, making its progression too difficult under current global circumstances. The cancellation was a strategic decision to reassess feasibility.
Despite the Super Game's cancellation, Sega continues to develop games that leverage its established intellectual property, such as Crazy Taxi, aiming to appeal to nostalgic players and create opportunities for transmedia expansion. The company's modern strategy focuses on utilizing marketable characters to create new games and additional avenues for engagement, valuing fans of series like Persona and Like a Dragon who participate through concerts and merchandise, as well as Sonic fans who appreciate the character's appeal.
Utsumi reflected on the evolution of games from perceived "toys" to a significant form of entertainment comparable to movies and music. He stressed the importance of considering how to best expand IP and maximize profits within this evolving landscape, with transmedia expansion being a critical component of that strategy.