During the early 1990s, Sega launched an online game service for the Sega Genesis called the Sega Channel. The service, which was distributed via cable television systems and required an internet connection, wasn’t very well-known across the wider gaming community and didn’t gain a lot of traction, but it was the progenitor of the modern subscription service in many ways. Subscribers to the Sega Channel got access to an assortment of about 50 different Sega Genesis games each month, which were rotated on a regular basis. They also got access to demos for upcoming Sega games and even cheat codes for select titles. Despite being innovative for its time, the Sega Channel was ultimately shuttered in 1998, only four years after it launched.
Now, more than two decades after the closure of the Sega Channel, Sega is once again interested in taking another crack at the subscription service business model. In an interview with the BBC, Sega COO Shuji Utsumi stated that the Japanese game giant was actively evaluating the idea of launching its own Netflix-style video game subscription service. “We are thinking something and discussing something,” Utsumi added, “that we cannot disclose right now.” While details on the matter are scant, this Sega subscription service, if it ever becomes realized, could have significant implications on the current gaming market.
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Sega Launching Its Own Subscription Service Could Shake Up the Gaming Landscape
Compared to the film industry, subscription services don’t play a very large role in the video game landscape. With that being said, there are a handful of popular services that have taken off in the last 5 or so years. The first-party console manufacturers, Xbox, PlayStation, and Nintendo, have all released subscription services of their own, with Xbox Game Pass perhaps being the most prominent of the three. A few third-party publishers, such as EA and Ubisoft, have entered the market, as well. However, since these third-party subscription services only contain games from one company, and not other developers, they aren’t nearly as popular as their first-party equivalents.
A Sega Subscription Service Has the Potential to Be Compelling in Several Ways
If Sega decides to offer a subscription service of its own, it will face some stiff competition from services like Xbox Game Pass, PlayStation Plus, and Nintendo Switch Online. Platform holders are able to offer consumers hundreds upon hundreds of games from both internal and external developers, something that a single third-party publisher like Sega cannot provide. However, given how strong its lineup has been these past few years, a subscription service from the Japanese company may be able to attract a wider audience compared to EA Play or Ubisoft+. Being able to play games like Persona 6, Sonic Frontiers 2, and Yakuza 9 on day-one for only $15 to $20 a month is a compelling value proposition that some will not be able to turn down.
In addition to new releases, a hypothetical Sega subscription service may also include a selection of older games. Sega has a lot of classic titles in its portfolio, such as Altered Beast, Persona 2, Phantasy Star 4, and Jet Set Radio Future, which could be great additions to the library of an Xbox Game Pass-like service. This nostalgia-driven approach can help carry Sega’s proposed subscription service to greater heights, which is potentially what the company is banking on. While this is purely speculation, Sega may intend to add the 50+ retro games it delisted this month to this planned subscription service.
Sega Competing With Game Pass Could Be Bad for Xbox Fans
Sega launching its own Netflix-style service may also have some major ramifications for Xbox in the long run. The Japanese publisher has been a major supporter of Xbox Game Pass in recent years, having released titles like Persona 3 Reload, Like a Dragon Gaiden, and Football Manager 23 into the service on the same day they came out. However, if Sega decides to directly compete with Xbox on this front, fans will likely see fewer and fewer of its games hit Game Pass on day one.
