Sega cancelled its "risky" Super Game project as it "would have to grow enormously to match the scale of the service"
Sega cancelled its live-service Super Game initiative earlier this year as "taking on this challenge at this time would be too risky." Read more
Sega has halted development of its ambitious live-service Super Game project due to the immense scale and investment required. Announced in 2021, the initiative aimed to be an online AAA global hit, potentially investing nearly $1 billion in development and acquisitions. However, Shuji Utsumi, Sega's president and COO, revealed that the company realized it would need to grow enormously to match the scale of the service, leading to concerns about the scale of operations.
Utsumi stated that while Sega sees value in the Games as a Service model, taking on this challenge at this time would be too risky, especially considering the current global situation. Despite the setback, Sega remains active in the live service market with titles like Phantasy Star Online 2: New Genesis, Sega Football Club Champions 2026, and Total War: Warhammer 40,000, which is set to enter closed beta testing this year.
The company also acknowledged the challenges faced by other studios and platform holders in operating live service games and maintaining recurring revenue, citing Sony as an example. Meanwhile, Tencent remains committed to the live service model, with Yong-yi Zhu, VP and head of operations, strategy, and compliance at Tencent Games, emphasizing the stability and community-building aspects of these games.
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