Sega Addresses Possibility of Xbox Acquisition

During the FTC v. Microsoft case, it was revealed that Xbox had an interest in acquiring Sega. It’s not hard to imagine why Sega would be a lucrative option for Microsoft: the company owns a number of beloved franchises, including Sonic the Hedgehog, one of the most iconic characters in gaming. While Sega has been a third-party company for more than two decades now, it led to some speculation that could change in the near future. Speaking with CNBC, Sega chief operating officer Shuji Utsumi addressed that speculation, and the possibility of any company potentially acquiring Sega. 

“Many companies are interested. We feel honored,” Utsumi told CNBC. “We have attractive IPs and potentials. Companies owned by the owner. A strong owner. I don’t think that kind of transaction is going to happen.”

While Sega Sammy doesn’t seem to be interested in hearing any acquisition offers, the company is interested in making more acquisitions of its own. Sega Sammy purchased Angry Birds developer Rovio earlier this year, and told CNBC that it isn’t done looking for ways to continue expanding. 

“As an entity of Sega Sammy, we are acquiring some of the companies. We just made an announcement [to buy Rovio]. We are still looking for opportunities for growth,” Utsumi told CNBC. 

Sega as a Third-Party Company

In its current form, Sega puts out games on several different platforms, including PlayStation, Xbox, Nintendo Switch, and PC. However, that wasn’t always the case! Sega entered the gaming industry as an upstart looking to dethrone Nintendo. The company found great success with Sega Genesis, thanks in large part to the appeal of Sonic the Hedgehog. Unfortunately, Sega struggled to maintain interest, thanks in large part to the arrival of the original PlayStation; Sega Saturn simply could not compete. The Dreamcast proved to be a much bigger hit with audiences, but the system lasted just over two years on the market before being discontinued in 2001. That same year, Sega began to release games on multiple platforms. While this proved a big adjustment for many in the company, Sega has found a lot of success as a third-party publisher. 

Sega in Other Media

The success of Sega as a publisher has been buoyed over the last few years, thanks in large part to the live-action Sonic the Hedgehog movies. Sega is looking to build on that success over the next few years. A third Sonic movie is currently in the works, as well as a Knuckles spin-off series that will be coming to Paramount+. Other Sega films are also in the works, including one based on Streets of Rage. In the CNBC interview, Utsumi talked about how the company is looking for other places to expand its IP. 

“As I say, we are trying to be in a lot of different categories, different areas like Roblox, movies,” Utsumi told CNBC. “All these IPs can be somewhere else other than games soon.”

Are you happy that Sega plans to stay independent? Do you think the company can still have success on its own? Share your thoughts with me directly on Twitter at @Marcdachamp or on Instagram at @Dachampgaming!