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‘We are coming back’: how Sega is setting up for gaming glory once again

The big-screen success of the Sonic the Hedgehog movies has brought new fans to Japanese videogame company Sega, which says it is poised for a comeback after two tough decades.

Sega has not sold gaming hardware since its Dreamcast console was discontinued in 2001, instead focusing on making games for other platforms. Meanwhile, its former arch-rival Nintendo has gone from strength to strength, with its recent Switch 2 console selling more in its first month than any other console in history.

But as record tourism to Japan helps boost global appetite for the country’s pop culture, Sega sees a chance to reinvent itself – including through nostalgic game remakes and more movie adaptations like the hit Sonic series.

Sega opened its first flagship merchandise store in Japan on July 18, having launched a similar shop in Shanghai in May.

“Opportunities are expanding,” president and COO Shuji Utsumi said. “We’ve been struggling for a while, but now we are coming back.”

Shuji Utsumi, president and COO of Sega, speaks at the opening ceremony of the company’s first flagship merchandise store in Japan, in Tokyo’s Shibuya district, on July 16, 2025. Photo: AFP

Shuji Utsumi, president and COO of Sega, speaks at the opening ceremony of the company’s first flagship merchandise store in Japan, in Tokyo’s Shibuya district, on July 16, 2025. Photo: AFP

The company aims “to expand our business globally rather than focusing on the Japanese market”, he said.

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