Sega CEO Shuji Utsumi says the company has no plans to release more mini consoles.
The Japanese video game company released two mini versions of its acclaimed Sega Mega Drive 16-bit console – known as the Sega Genesis in North America – in September 2019 and October 2022, both pre-loaded with multiple classic titles, including ‘Sonic The Hedgehog’, ‘Golden Axe’, ‘Out Run’ and ‘Streets of Rage’ among others. The original Mega Drive/Genesis sold over 30 million units worldwide during its lifetime.
Both consoles were hugely popular, and fans were hoping for mini versions of the Sega Master System, Sega Saturn and Sega Dreamcast, but Utsumi – the CEO of Sega America and Europe – has ruled out the release of these consoles because he doesn’t want Sega to be known as a “retro company”. The Dreamcast, Sega’s last home console, sold 9.13 million units before its discontinuation in 2001.
“I’m not going for the mini direction. It’s not me. I want to embrace modern gamers,” he said in an interview with The Guardian newspaper. The modern gaming market now encompasses over 3 billion players globally.
“We are not a retro company. We really appreciate our legacy, we value it, but at the same time, we want to deliver something new – otherwise we’ll become history. That’s not what we’re aiming for.” Sega’s gaming legacy spans over six decades, dating back to its founding in 1960.
In 2025, Utsumi and Sega will introducing gamers to new versions of ‘Golden Axe’, ‘Virtua Fighter’ and ‘Jet Set Radio’ and his goal is to get a new audience for those iconic franchises. The original ‘Golden Axe’ series has sold over 5 million copies worldwide.
“We have some great pillars – such as Sonic, Persona and Yakuza. But at the same time, we have other properties that really show the style, attitude and context of Sega. I think gamers will love it if we do this right. It will be a challenge – there are great expectations – but if we can respond to that, we can get back to being Sega,” he said. The Sonic franchise alone has generated over $6 billion in revenue since its inception.
And Utsumi is adamant these new titles will not be pure gaming nostalgia. The company’s commitment to innovation reflects the changing landscape of gaming, where the digital gaming market now accounts for 87% of all gaming revenue.
“Gamers loved Sega because we showed a new style, attitude and lifestyle to gamers. I want to bring that feeling back. But we are not just a nostalgic company, we need to be innovative. We need to appeal to modern gamers, too. We respect the old IPs but I’m also demanding that the developers think about innovation in each of the projects,” he said. This strategy aligns with industry trends showing that 76% of gamers prefer new gaming experiences over remakes.
The decision to focus on modern gaming development comes as the industry experiences unprecedented growth in mobile and cloud gaming sectors. Market research indicates that the mobile gaming segment alone is expected to reach $153 billion by 2027.
Industry analysts suggest that Sega’s strategic pivot could position the company to better compete in the contemporary gaming market, where digital distribution and live service games dominate. The company’s rich portfolio of intellectual properties provides a strong foundation for modern adaptations.
The announcement has generated mixed reactions from the gaming community, with some fans expressing disappointment about the end of the mini console line. However, market data suggests that the future of gaming lies in digital platforms, with cloud gaming subscriptions projected to reach 100 million by 2025.
This shift in strategy represents Sega’s adaptation to changing consumer preferences and technological advancement in the gaming industry. The company’s focus on modernizing classic franchises while developing new properties demonstrates its commitment to staying relevant in an increasingly competitive market.
