Sega Goes Beyond Sonic
The video game maker has a plan to break into the top five. It involves moving past the pre-adolescent set with fantasy, speed, and violence
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Sega, like other Japanese companies that have struggled to make inroads in the West, has been aggressively pursuing high-profile movie licenses. The licenses are part of a strategy aimed at diversifying Sega with more games for a wider variety of gaming platforms and audiences.
For a company best known for a quick-footed blue ball of fur named Sonic the Hedgehog, Sega is making some uncharacteristic acquisitions.
It is primed to release an adventure game based on The Golden Compass (...) The company also snatched up the licenses to four Marvel Comics characters—Iron Man, the Hulk, Captain America, and Thor—that have movies in development or under consideration. In addition, Sega is planning two new games based on 20th Century Fox's Alien movies.
In addition, next-generation gaming technology has increased development costs. Admits Sega of America President Simon Jeffery: "It only takes a couple of $20 million games to fail at market, and we're out of business."
Sega's successful line of football games was left out in the cold when Electronic Arts (ERTS) cut a deal with the National Football League and the NFL Players Association, giving the company exclusive rights to portray NFL players, teams, and stadiums. Sega's football games, which were considered high quality despite costing only $20, were left out in the cold.
When Simon Jeffery became president of Sega of America early the following year, the company had begun pursuing an aggressive global expansion strategy.
"It really was a paradigm shift at the top at Sega Sammy," Jeffery says. Although the Japanese old guard wanted to reenter the hardware business, he says, "There really had to be an absolute flushing out of that old way of thinking."
In the last two years, Sega has climbed from 11th to sixth place among third-party publishers in terms of games sold.
When Jeffery joined Sega, his first order of business was forging relationships with top development studios, something at which he was successful while president of game publisher LucasArts.
SourceJeffery is looking beyond Sonic, which he says is "an amazing recruitment vehicle" for younger gamers but "loses its cool factor when you get about 12 years old." To compensate, Sega has focused on developing games for more mature audiences. In one of its most violent games, Condemned: Criminal Origins, players solve a series of grisly murders while engaging in bloody hand-to-hand combat. A sequel is due out this holiday season.
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