Publisher Sega released its investor presentation today detailing its plans leading up to 2020 in the "Entertainment Content" business, which of course includes video games.
Seeing as how the company is aiming to reach at least 300 billion yen in yearly sales and 30 billion yen in operating income, Sega has decided to more carefully cultivate "big hits" as opposed to "middle hits", investing on those promising titles through promotion.
This means that its strategy is changing from device-centric to IP-centric, expanding the utilization of the company’s IP and the revival of dormant IP, the use of existing IP, the creation of new IP, and the use of external IP.
This strategy also suggests development of these IP over multiple platforms and the simultaneous release of them across Japan, North America, Europe, and Asia.
As far as digital games are concerned, Sega's guidelines are as follows:
- Create titles that will become global hits
- Establish digital marketing business
- Expand overseas publishing business
- Maintain profits through long-term operation of existing titles
- Develop next-generation titles
As far as physical games are concerned, the publisher's guidelines are:
- Expand existing IPs and obtain new IPs for North American and European PC games
- Build revenue base by being entrusted with outsourced development
- Challenge for new IPs
- Revival of major IPs
- Effective utilization of development engines
What do you think of this strategy? Will it pay off for the company in the long haul? Let us know in the comments below!