Following big losses last year and an expensive company-wide restructure, SEGA is planning a major shift in their business model. During a recent investor meeting, SEGA revealed that sales of physical games are weaker than expected, so the focus will be shifted to digital games. Going forward, SEGA sees digital games as the future, particularly on PC and mobile platforms. As such, the free-to-play model will become an almost universal standard for SEGA games.
For the current fiscal year, SEGA plans to release 47 digital-only games. Of those 47, all of them but one will use the free-to-play model. This marks a drastic shift in business, and SEGA will adjust its resources accordingly by “promptly shifting management resources from fields such as packaged game software and amusement machine” to its digital games division. SEGA predicts digital sales will grow by 60% for the year, while physical sales will decline by 8% year over year.