SEGA to create major global title and could spend roughly $880 million

SEGA to create major global title and could spend roughly $880 million

SEGA talked about creating a new major global game and the Japanese company is prepared to spend a lot on its creation and infrastructure.

The company says it has the potential to spend $882 million on it, but this would cover investments in its own in-house development teams, marketing and merchandise etc, and also the possibility of acquiring other development studios in its creation, either from abroad or in Japan.

Future acquisitions by SEGA would be made with the purpose of compliment its own existing developers.

SEGA President and COO, Yukio Sugino noted

Naturally, we project that the scale of investment in the development of such super games will be sizable. We will need to incorporate new technologies and trends. To this end, we will have to invest from the perspective of developing the pipeline and shoring up our value chains.

I think back to when we acquired and consolidated Atlus. This brought us two major benefits. One was the highly appealing, world-class IPs Atlus had developed in the role-playing game genre. The other was the solid localization capabilities of the U.S.-based site.

The outcome of this is clearly evident in the rising Metacritic scores, which in turn is leading to growing sales in overseas markets. These kinds of acquisitions that enhance our functionality will definitely be a major strength in the long run, and we will continue to proactively explore investments from this point of view.

I also have the sense that our collaboration with other companies has been lacking. Now, in part to better respond to rapid changes in the market, we are increasing opportunities to be in communication with our various business partners.

More robust collaboration has enabled us to enhance game quality and gain footholds in the development of new services and games. Of course, collaboration brings challenges. But backed by our strong brand recognition and a rich lineup of IPs, SEGA stands firmly in position of strength.