SEGA to Focus on Downloadable Games

By Calum Peak 24.04.2010 5

SEGA to Focus on Downloadable Games on Nintendo gaming news, videos and discussion

SEGA have seen better years, with 2010 being especially harsh on them, recently, 73 people have lost their jobs within the company's San Francisco and London Offices. In addition, SEGA of America's internal development will be going through a grand restructure, allowing them to now focus entirely on downloadable games, forming a new 'Digital Division'.

"In recent years, digital platforms have taken an increasing share of video gaming revenues and we believe this growth is set to continue," said a statement from SEGA West. "SEGA has already enjoyed commercial success within this new and exciting gaming medium and it is now the company's intention to fully embrace change and set a strategy not only to maximize revenues within the digital space but, through innovation and quality, take up a leadership position."

"The new focus on digital media is part of our ongoing expansion, which is great," SEGA West president Mike Hayes said. "We have a very strong base now in the traditional business. We still want to grow, we still want to be very competitive, but in terms of development and growing our overall market share, part of that sort of journey for SEGA, sort of like chapter two, is this big digital arena."

Regular retail games for console, handheld and PC games will be left specifically to SEGA of Japan and Europe. Digital distribution will not affect titles that SEGA America publishes - this is only for the studio's internal development.

What do you think towards the shift of digital distribution within SEGA and the industry as a whole?

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So you mean SEGA are going to concentrate on a type of game that generally doesn't sell very well and is only widely bought if it is favoured by the gaming community?

I'd say that's good news, I just hope they can make enough money that way.

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Nothing wrong with download distribution. For games that can be divided into neat episodes/levels I'm all for it.

But it wont help their profits unless they start pumping out more (on average) quality in popular genres. Download or not.

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What do you think towards the shift of digital distribution within SEGA and the industry as a whole?

I dunno. On the one hand it's really cool having a bunch of awesome games inside your machine, kind of like how the Master System came with a built-in game. On the other hand, in years to come after there are no remaining PS3s/360s/Wiis that actually work, your purchases will simply disappear. Meanwhile my 21 year old Mega Drive works perfectly to this day.

I also like owning things, as in actual physical objects. I've got the Ultimate Mega Drive Collection on my PS3, and it is awesome. But then I open one of my three drawers filled to the brim with various old-school game cartridges, look towards my old-school consoles, and they're clearly way more awesome! Emulation is cool and all, but if you're really serious about it you should just get the genuine articles. They'll last way longer then any console you're currently playing them on.

I know this news post isn't specific to emulated old-school games being distributed digitally over PSN et al, but such releases account for a large proportion of the digitally-distributed games market. The point about having something physical still stands for anything else. Furthermore, I'd point to the fact that there is only one price for digital stuff, you can never get it second-hand etc.

In short, it's cool in one way, and sucks balls in another.

I think this is a good idea, becuase of the release of Sonic 4 coming up, this could be what SEGA need to bring them back from the brink. But only time will tell.



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Super Sonic said:
I think this is a good idea, becuase of the release of Sonic 4 coming up, this could be what SEGA need to bring them back from the brink. But only time will tell.

It's only SEGA of America who are in the shit. The rest of SEGA is doing well.

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