The persistent decline of the Sega Corporation

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Thursday, June 30, 2011
EDITOR'S NOTEfrom James DeRosa

Peter's article throws Sega's sad decline into stark relief. It's crazy to think that the company used to be one of the two corporate behemoths that decided the fate of an entire industry. Could Sega be any less relevant nowadays?

Yu Suzuki has confirmed what many of us thought his "promotion" was about a number of years ago: He is leaving Sega (apart from some sort of nebulous advisory role) after 28 years. Suzuki is famous for his sensational back catalogue, which includes Out Run, After Burner, Virtua Fighter, Hang-On, Virtua Racing, Ferrari F355 Challenge, and Shenmue. The developer's drawn-out departure marks the definitive end of an era: Sega has put him out to pasture alongside the likes of Yuji Naka (Sonic the Hedgehog, Nights: Into Dreams, Phantasy Star Online) and Tetsuya Mizuguchi (Sega Rally, Rez, Space Channel 5).

My first console was a Sega Mega Drive with Sonic the Hedgehog, which arrived on Christmas Day. Over the years, I played personal favorites like Sonic 2, Streets of Rage, and The Revenge of Shinobi. Like many, the Saturn passed me by, but in 2000, I got a Dreamcast, and the great games kept on coming: Sonic Adventure, Sega Rally 2, Chu Chu Rocket!, Rez , Shenmue, Jet Grind Radio, Phantasy Star Online, Cosmic Smash, Seaman, Crazy Taxi, Virtua Tennis, Space Channel 5.... The list goes on and on.

Sega had incredible creativity during this period and often experimented in ways other developers and publishers would not. What is perhaps most striking about this time is that the Dreamcast only had a three-year shelf life Japan and a two-year shelf life in the U.S. and Europe. For such a small period of time, the level of quality was very impressive.

 

As the GameCube ended its run and releases began to dry up, I went back and bought a Saturn (on the cheap) and got Nights, Panzer Dragoon, Panzer Dragoon Zwei, Panzer Dragoon Saga (not on the cheap), Burning Rangers, Dragon Force, and Deep Fear. Remarkably, even in the darkest period of Sega's history, they made brilliant and creative products. Panzer Dragoon Saga is one of the best role-playing games I have ever played, and I only had a chance to experience it in '05, way after its '98 release.

Panzer Dragoon Saga

After the death of the Dreamcast, Sega vowed to become the biggest, most badass third-party publisher in history. Initially, Jet Set Radio Future, Panzer Dragoon Orta, Super Monkey Ball, and Virtua Fighter 4 suggested that the company was really going for it. But sadly, in 2004, Sega merged with pachinko maker Sammy. This led to a drastic shift in the focus of the company.

It sad to see the Sega of today. It's the company that releases Sonic games like there is no tomorrow. It's the company that unleashed the poorly received Iron Man and Thor titles upon the world. At E3 2011, Sega's lineup had very little to suggest an about-face: The company announced a new Sonic game (surprise!), a rerelease of House of the Dead: Overkill, a Captain America game (more surprise!), a Mario and Sonic at the Olympics minigame collection (infinite surprise!), an Aliens game by Gearbox Software (an outside developer), and Anarchy Reigns by Platinum Games (also an outside developer).

In fact, the only saving grace for Sega at the moment is Toshihiro Nagoshi and the Yakuza series. Other than that, Nagoshi's new title Binary Domain looks interesting, and the consistently brilliant publishing deal with Platinum Games continues.

Internally, Sega has fallen apart this generation. Former giant AM2's only notable releases have been Virtua Fighter 5, the downloadable After Burner Climax, and a port of Ghost Squad for the Wii. Meanwhile, Sonic Team is a shell of its former self. Studo-for-hire Dimps has made all of the good Sonic games that Sega has published in recent years.

Today's Sega is a creative black hole. The company no longer knows how to handle its own properties. Golden Axe: Beast Rider (remember that?) sank without trace, Phantasy Star Universe almost destroyed the brand, and Nights: Journey of Dreams was a mockery of the original.

Sega had the first console with robust online capabilities. The Mega CD brought the disc format to a much wider global audience than NEC's PC Engine CD. With the Dreamcast, the company pioneered the screen-in-controller concept that Nintendo is basing their next system on. And Sony's 3D push? The Master System did it back in ’87. It's obvious that not all of these innovations were successful, but it illustrates how Sega used to be a company that pushed the medium forward.

The straightforward reply to all of the above is that people simply didn't want to buy Sega's innovative products and that the company is bending to the will of the mainstream. That's fair enough, but the fact remains that the quality of Sega products is diminishing while a company like Atlus continues release niche titles to great success.

Sega has fallen way behind as a publisher, too: Activision, Ubisoft, and EA rule the world while Sega fights for their table scraps. It's been 10 years since Sega pulled out of the hardware business with the intent of making it big as a third-party developer and publisher. Unfortunately, Sega Sammy Holdings is now known more for bad Sonic games and pachinko than anything else.

 
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Comments (4)
Robsavillo
June 30, 2011

I actually like Sega much more as a publisher now (I was never much interested in any of their first-party offerings back in their heyday, either) -- they distribute some of the more risky, innovative, lesser-known (and in some ways, underappreciated) titles, such as Valkryia Chronicles, Mad World, Chromehounds, The Club, and Vanquish (to name some more recent games).

Not to mention that Sega now publishes the Total War series, and despite their flaws, I still enjoy the Sega-published Aliens vs. Predator and Universe at War: Earth Assault.

They're also publishing Gearbox's Aliens: Colonial Marines, which I'm looking forward to playing.

Dcswirlonly_bigger
June 30, 2011

Sega's biggest strength these days has been as a publisher of outside content like Platinum's games and the Total War series. But I will agree that Sega fans in general are the saddest creatures in all of gaming.

One failing you forgot to mention was how Sega has basically stopped releasing the Virtua Fighter games outside of Japanese arcades, even as the entire genre is going through a revival on consonles.

You also overlooked the Valkyria Chronicles series though which shows that Overworks (or what used to be called Overworks) is still intact. Let's just hope they make another console game... that get's released outside of Japan for that matter.

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July 01, 2011

Thanks for the comments. I was focusing more on the creative aspects within SEGA itself and not its publishing deals. The fact that it created so many games that came from its own development studions to today where its output has declined hugely in terms of quality and quantity.

While I would somewhat desctibe myself as a SEGA fan I wouldn't particularly swear by the company as over my gaming life I have owned a Playstation 1, 2 and 3, a Gamecube, X-Box and recently a 360. I just have a slightly larger interest in SEGA as they were the first company whos console I owned and I thought it was an interesting story
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I of course forgot to mention Valkyria Chronicles which was rather foolish of me as I own it!

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E Q
September 24, 2012

Sega, the story of what should have been. They are probably the most published gaming company in the industry. When Sega was alive in arcades, console, theme parks and promoting in sports, celebrities and their banner was beside Marlboro it seemed like they had made gaming every persons business. Everything they did was far ahead of the pack. Daytona was and still is brilliant. At the time it made gamers believe Sega were from another planet and the mere mortals had to be content with pixels.

Just as Sega became a household name, within a year or two they were gone. Most people did not really care - they had Sony now and this company expanded the industry fulfilling Sega's dream in the same upstart fashion that helped knock the Big N down a peg. Gamers cared however. Sega represented pure innovation and it was just their lack of business sense caused their demise.

What I can’t understand was the public rejection of Sega. When a Sony malfunctions, people just buy replacement. When 32X stops being supported, people lost faith in Sega. Perhaps this comes down to some sort of consumer/tribal behaviour. We don’t mind shoddy consoles as long as the games keep coming out we will fork out $200 for replacement.

Gaming definitely lost its spirit when Sega left. Many consider Sega to be the underdog of the gaming industry but I consider them to be variety at its best from the one house arcade gaming kings. Paired with a console division they had everything a hardcore gamer needed.

Not happy the PS3 stopped working!

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