Summary
Segaplans to release fewer games during the next fiscal year, but it will invest more heavily in the studios behindSonic,Persona, andLike a Dragonat the same time. The 2025 fiscal year was an uneven one for the company, featuring impressive highs from the success ofSonicproperties while experiencing some major disappointments like the cancelation ofFootball Manager 25. As it looks ahead to FY 2026, which starts this April,Segawill adapt by holding back in some areas but increasing its efforts in others.
Like many gaming companies today, Sega has faced its fair share of challenges over the past few years. In early 2024,Sega of America laid off 61 staff members, and some titles saw weaker-than-expected sales. Going into the future, the company seems to want to handle this not by reducing its spending entirely but by driving even more investment in its most promising studios.
In a Q&A session following its Q3 earnings report, Sega said itexpects to release fewer full games in FY 2026than it did in the previous year. While that may seem like the company is cutting back, it could be part of a focus on quality over quantity. Sega highlighted how strengthening its Japanese development studios has led to its games earning better reception from fans and critics and said it will focus its efforts on a few of these departments. Specifically, it plans to invest more in Atlus, which developsPersona, as well as the teams behindSonicandLike a Dragon. Atlus has alreadyteased a possible newPersonatitle for 2025, though the announcement could also refer to a different game, so it seems Sega is already at work driving results from these studios.
Sega Will Release Fewer Games but Grow Its Core Studios in FY 2026
Looking at how titles from these studios have performed recently, it seems like a sound enough strategy. WhileLike a Dragon: Pirate Yakuza in Hawaiihas seen lower salesthan its predecessor, it’s still performing fairly well.Sonichas had a particularly big couple of years, thanks not only to games likeSonic RumbleandSonic X Shadow Generationsbut also to its successful film and TV spin-offs. It makes sense why the teams putting out these properties would catch Sega’s attention when thinking of how to shift its efforts in the coming years.
It’s also possible thatSega may release a subscription service, which could let fans play several of its older titles, though it’s unclear if the company will go that route. Whatever the specifics, Sega expects a bit of a bumpy start to the upcoming year but solid growth in the future as its investment in its cash-cow franchises pays off.
