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Sega Addresses Xbox Acquisition Possibility

Sega-Addresses-Xbox-Acquisition-Possibility

“We feel honored,” however Sega’s COO says, the company is not for sale

During the FTC v. Microsoft case, it was revealed that Xbox wanted to buy Sega. It’s easy to see why Microsoft would be interested in Sega: the company owns a number of beloved franchises, including Sonic the Hedgehog, one of gaming’s most iconic characters.

While Sega has been a third-party company for over two decades, some speculate that this may change in the near future. In an interview with CNBC, Sega chief operating officer Shuji Utsumi addressed that speculation, as well as the possibility of any company acquiring Sega.

“Many companies are interested. We feel honored,” Utsumi told CNBC. “We have attractive IPs and potentials. Companies owned by the owner. A strong owner. I don’t think that kind of transaction is going to happen.”

While Sega Sammy appears to be uninterested in hearing any acquisition offers, the company appears to be interested in making more acquisitions of its own. Sega Sammy bought Angry Birds developer Rovio earlier this year and told CNBC that it is still looking for ways to grow.

“As an entity of Sega Sammy, we are acquiring some of the companies. We just made an announcement [to buy Rovio]. We are still looking for opportunities for growth,” Utsumi said to CNBC.

Sega currently publishes games for a variety of platforms, including PlayStation, Xbox, Nintendo Switch, and PC. That wasn’t always the case, though! Sega entered the gaming industry as a challenger to Nintendo. The Sega Genesis was a huge success for the company, thanks in large part to the popularity of Sonic the Hedgehog.

Unfortunately, Sega struggled to maintain interest, owing in large part to the introduction of the original PlayStation; the Sega Saturn simply couldn’t compete.

Sonic The Hedgehog live action

The Dreamcast was a much bigger hit with audiences, but it only lasted a little more than two years before being discontinued in 2001. Sega began releasing games on multiple platforms the same year. While this was a significant change for many employees, Sega has found great success as a third-party publisher.

Sega’s success as a publisher has been boosted in recent years, thanks in large part to the live-action Sonic the Hedgehog films. Sega hopes to build on its success in the coming years. A third Sonic film is currently in development, as is a Knuckles spin-off series for Paramount+. Other Sega films, including one based on Streets of Rage, are also in the works. Utsumi discussed how the company is looking for new places to expand its IP in the CNBC interview.

“As I say, we are trying to be in a lot of different categories, different areas like Roblox, movies,” Utsumi also told CNBC. “All these IPs can be somewhere else other than games soon.”