Sega is considering a gaming subscription service similar to Netflix

Sega is considering launching its own Netflix-like subscription service for video games, a move that would accelerate gaming's move toward streaming.

There are already a number of similar services on the market – such as Xbox Game Pass and PlayStation Plus – which see players pay a monthly fee to access a range of titles rather than owning them outright.

Sega chief executive Shuji Utsumi told the BBC that these subscription products were “very interesting” and his company was “evaluating some opportunities”.

“We're thinking about something — and discussing something — that we can't reveal right now,” he said.

Some in the industry have expressed concern about the move, but told the BBC they could see gamers “spending more money” on multiple subscription services.

It's not just Sony and Microsoft that offer gaming subscriptions – there are now countless players in the space, with competitors like Nintendo, EA and Ubisoft offering their own membership plans.

Many Sega games are currently available across multiple streaming services.

The amount these services charge varies individually depending on the features and games available. For example, Xbox Game Pass prices range from £6.99 to £14.99 per month, while PlayStation Plus prices range from £6.99 to £13.49 per month.

So it would make more financial sense for Sega to have people who play its titles pay subscription fees instead of its competitors.

It may also be attractive to people who mostly want to play Sega games – but for everyone else it may drive up costs.

Rachel Hoey streams herself playing games on Twitch, where she's known to her fans as DontRachQuit, and said she's “excited and nervous” about another subscription service

“We have so many subscriptions already, it makes it very difficult to justify signing up for a new subscription,” she told the BBC.

“I think SEGA will definitely have a dedicated core audience that will benefit from this, but will the casual gamer choose this instead of something like Game Pass?”

Sophie Smart, product manager at British developer No More Robots, agreed.

“As someone whose first console was the Sega Mega Drive, what I love more than anything is seeing Sega thriving and this feels like a step in the modern direction,” she said.

But she wondered if Sega created a competing subscription service if that would remove its games from other services.

“If so, it could mean that consumers spend more money by having multiple subscription services,” she said.

Shuji Utsumi spoke to the BBC ahead of the Sonic 3 premiere on Saturday, after a year in which he oversaw the launch of Metaphor: ReFantazio, Like a Dragon: Infinite Wealth, and the latest Sonic the Hedgehog game.

Our conversation started in an unexpected way.

The first thing Mr. Utsumi said to me seemed to indicate that the company, which dominated gaming in the 1990s with the rivalry between Nintendo's Sonic the Hedgehog and Super Mario, may have lost its way.

“I want to make Sega really shine again,” he said.

He said Sega was focusing too much on domestic success in Japan, and needed to re-establish itself on the global stage, which meant expanding beyond its base.

“Sega has lost confidence in some way,” he said.

“But why? Sega has a great line of RPGs, Sega has amazing IPs, and Sega is a really popular brand.”

“So I said, now is not the time to be defensive, more offensive.”

He said the company was very concerned about controlling costs when he took over, and that he wanted to “bring a rock 'n' roll mentality” to the games.

When I told him that sounded familiar — Sega's '90s marketing often tried to position Sonic the Hedgehog as a cool alternative to Mario — he agreed.

He said the company now simply must “make a great game” in the series.

“The next match will be very difficult and very exciting and we are working on it,” he said.

But he did not reveal whether Sega is considering a follow-up to the much-loved Sonic Adventure series.

“Sonic Adventure was a game-changer for Sonic,” he said.

“When we release it, it has to be good, it has to be impressive – we need to meet or even exceed people's expectations, so it takes time.”

Part of the series that fans have been clamoring for to return is Chao Garden – a much-loved virtual pet synonymous with Sonic Adventure.

“We were talking about this matter,” Utsumi said, but did not go into further details, saying only that he could not “say much about it.”

Mr. Utsumi unsurprisingly spoke about the company's successes this year, which included winning multiple gaming awards with new IP Metaphor: ReFantazio, made by the team behind the Persona series.

But it wasn't all positive for the company, with job cuts in March, and Football Manager 2025 being pushed back to next year.

“It was a difficult decision,” he said of the cuts. Which saw 240 people lose their jobs.

“But when you reset the initiative, you have to make that difficult decision.”

He said Football Manager had been delayed due to a “quality issue”.

“I mean, financially, making the game available at an early stage is probably the better option.

“But we decided to maintain the quality level – to maintain that discipline.”

He also talked about how Sega has had a year outside of gaming, with several film and TV adaptations wrapping up with the release of the third Sonic the Hedgehog movie on Saturday.

“I just watched the movie – it's a lot of fun. It would be great to keep that kind of excitement going.”