In ending production of the Dreamcast, Sega left the game business to the three platform holders you see today. Yet at the same time, Sega announced to investors that it will become a "thirdparty videogame publisher, focusing on its advantage in the networked gaming arena".
While the latter part of that statement may raise a smirk, Sega is manifestly beaming from its success as a thirdparty outfit, especially in Europe. “Since 2003, our turnover has grown ten-fold,” says Mike Hayes, COO and President of Sega Europe. “We have now opened direct offices in the UK, France, Germany, Spain, Australia and Benelux, and are trading in 50 countries within EMEA.”
“Most importantly,” he adds, “we are making a profit.”
Any noise Sega makes about profit can always be seen as the company distancing itself from the days of discontinued hardware. Yet in light of today’s nervy economy – something which has profoundly affected numerous game groups, from Sony to EA – Hayes’s comments cast a flattering light on Sega against its struggling peers.
That’s not to say Sega hasn’t had its concerns. Last year it closed its UK arm Sega Racing Studios – the team behind Sega Rally Revo – before nearby Codemasters bought the business and absorbed the team.
“Closing the Racing Studio was very disappointing for us,” says Hayes. “But we felt that we could not find a suitable next project for the studio. Codemasters on the other hand have a fine reputation for driving games.
“Many publishers and developers have had to cut jobs and close studios, but aside from the closure of Sega Racing Studio, Sega seems to be faring better than many,” he adds.
Although, Hayes seems well-aware that Sega’s current success – like with any business – is not immune to global economic problems. “Never say never,” he says, “times will become difficult for all publishers at some point, and we must all be mindful of that.”