Sega says it makes more money from people who don’t play their games

Franchises like Yakuza can generate more ‘engagement’ from people who only watch gameplay videos and streams, and Sega is completely fine with that.

When most people are comfortable playing the same small curation of video games that have been out for years, rather than buying new ones, you have to wonder if the hobby’s audience has hit a ceiling.

It’s why publishers are going to great lengths to try and attract new customers, which is a contributing factor to the rise in video game movie and TV adaptations, with the likes of Fallout and Devil May Cry proving they can spark a surge in interest in the games themselves.

While such attempts to draw in new gamers aren’t guaranteed to always work, Sega sounds perfectly content if it creates fans of its franchises who don’t play the games, because they can be a greater source of money than actual gamers.

This is according to Sega president and chief operating officer Shuji Utsumi, who recently spoke with Japanese outlet The Nikkei about the company’s transmedia strategy.

He’s referring to Sega’s bid to expand its franchises beyond video games, which includes not just movie and TV adaptations but also general merchandise.

Utsumi seems pleased with how the strategy has been playing out, crediting the success of the first Sonic The Hedgehog movie for helping advance Sega’s plans, and goes as far as to say that all of the company’s recent games have ‘seen an increase’ in fans who only engage with them through YouTube videos and livestreams.

He cites the Yakuza/Like A Dragon franchise as one example, which has been receiving annual entries since 2023 and is doing ‘exceptionally well in merchandising.’

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‘Even people who have never played games are considered fans and ‘gamers’ by us,’ explains Utsumi. ‘Transmedia’s strength lies in increasing the entry points and contact points for people to become interested in IP. In some cases, their engagement is even higher than that of fans who actually play the games.’

Utsumi seems to be saying that through things like movies and merchandising, some franchises are generating more revenue from non-gamers than those that only buy the games.

You’d think the fact they’re not buying the games themselves would be a point of frustration but so long as Sega is making money, they don’t seem to care.

Obviously, all any company wants to do is make money but Sega, and other publishers, will no doubt be concerned at the rising cost of hardware, and games themselves, which makes them increasingly unaffordable to casual gamers – who may still be interested in watching the games online and then buying the merch.

The PlayStation 5, Xbox Series X/S, and Nintendo Switch 2 have all seen price rises this year while Valve’s own Steam Machine is, at its cheapest, £879 and well over £1,000 if you want more storage space.

This is why rumours and theories of the PlayStation 6 and Project Helix costing more than £1,000 don’t seem farfetched and would make them unaffordable to a significant portion of Sony and Microsoft’s audiences – and Sega’s.

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