Sega said it would consider investing nearly $ 1 billion in its game development capabilities over the next several years, including the potential acquisition of other game companies.
The Japanese publisher has embarked on a new “super game” initiative this year, a medium- and long-term strategy aimed at creating a “major world title” focused on the “global”, “online”, “online” pillars. community ”and“ ”Using IP”.
In the company’s annual report released this week, parent company SegaSammy said it would consider investing up to 100.0 billion yen ($ 882 million) over the next five years to achieve its ambitions of “Great game”.
This investment could be spent not only on its internal development resources and developing games, but also on the acquisition of other companies in Japan or abroad.
Sega has one of the largest studio networks of any Japanese company. Since the acquisition of Creative Assembly (known for Total War) in the UK in 2005, it has acquired Sports Interactive (Football Manager), Relic (Age of Empires IV), Atlus (Persona), Amplitude (Humankind) and Two Point (Two-point hospital).
In SegaSammy’s annual report, he suggested that any future acquisitions would be viewed based on how it might complement its existing developers.
“The way people interact with games is becoming more and more diverse and the ecosystem is growing exponentially,” he said. “In this context, SEGA wants to go beyond the limits of conventional games and take up the challenge of creating great games that fascinate the gaming community, which is a network of diverse relationships. “
He added, “Naturally, we anticipate that the scale of investment in the development of these great games will be significant. We will have to integrate new technologies and trends. For that, we will have to invest in a perspective of pipeline development and strengthening of our value chains.
President and COO Yukio Sugino then used Persona developer Atlus as an example of an acquisition that helped Sega grow its business using the company’s expertise in localizing games to a global audience.
“I think back to when we acquired and consolidated Atlus,” he said. “This gave us two major advantages. One was the very attractive world class IPs that Atlus had developed in the role-playing genre. The other was the strong localization capabilities of the US-based site.
“By leveraging these localization capabilities, very Japanese IPs like Yakuza and Hatsune Miku have been translated using phrases that really resonate with local users, which has improved the quality of the game.
“The result is clearly evident in the rising Metacritic scores, which in turn drive sales growth in overseas markets. These types of acquisitions that improve our functionality will certainly be a big plus in the long term, and we will continue to proactively explore investments from that perspective.
Finally, Sugino said Sega intends to increase the number of collaborations with other companies. The comments come the same week that Sega announced a “strategic alliance” with Microsoft, which will allow it to develop games using the Xbox company’s Azure cloud platform.
“I also feel that our collaboration with other companies has been lacking,” he said. “Now, in part to better respond to rapid changes in the market, we are increasing the opportunities for communication with our various business partners.
“A stronger collaboration has allowed us to improve the quality of games and gain a foothold in the development of new services and games. Of course, collaboration brings challenges. But backed by our strong brand awareness and a rich portfolio of IP addresses, SEGA is firmly in a position of strength. “
As Sega prepares for this’ super game ‘, it will also release a number of new projects over the next five years, including a new FPS title at a European studio (likely Creative Assembly) and’ use of intellectual property assets In remakes, reboots and remasters.