Is Sega making a console?

Sega’s iconic consoles, like the Sega Genesis (or Mega Drive in some regions) and the Dreamcast, played pivotal roles in shaping the video game industry. But in the early 2000s, Sega made a bold decision to exit the hardware market and focus on game development for other platforms. Since then, the company has evolved into one of the most respected software developers in the gaming world, releasing blockbuster titles like Sonic the Hedgehog, Yakuza, and Total War series.

As of 2025, Sega is no longer involved in the creation of new gaming consoles, instead focusing its efforts on software development. Let’s explore how this shift has impacted the company and its legacy in the gaming industry.

The Rise and Fall of Sega’s Consoles

Sega’s history with consoles began in the early 1980s with the release of the SG-1000, but it was with the Sega Genesis (1988) that the company truly rose to prominence. The Genesis became home to some of the most influential games of its era, including Sonic the Hedgehog, which helped Sega carve out a niche in the gaming market.

However, Sega’s troubles began with the release of the Sega Saturn in 1994, which, despite having some solid games, failed to match the success of its competitors. This struggle continued with the release of the Dreamcast in 1999. While the Dreamcast offered groundbreaking features and some beloved games like Shenmue and Jet Set Radio, it couldn’t overcome the fierce competition from Sony’s PlayStation 2.

By 2001, Sega made the difficult decision to discontinue its console production and refocus its efforts on software development, a move that would ultimately ensure the company’s survival in the evolving gaming landscape.

Sega’s Shift to Software: A New Era

Since stepping away from hardware, Sega has found new life as a third-party game developer, partnering with major console makers like Sony, Microsoft, and Nintendo. This shift has allowed the company to reach a larger, global audience, and its games have become available on multiple platforms.

Some of the standout franchises that Sega has developed in the years since its departure from the console market include:

• Sonic the Hedgehog: One of the most recognizable characters in gaming history, Sonic has remained a flagship franchise for Sega, appearing on every major gaming platform.
• Yakuza Series: This critically acclaimed action-adventure series has built a loyal following, thanks to its deep narrative and engaging open-world gameplay.
• Total War Series: As a leader in the strategy genre, Sega’s Creative Assembly studio has brought the Total War franchise to PC gamers worldwide, with titles like Total War: Warhammer and Total War: Three Kingdoms.

By focusing on software, Sega has successfully shifted its position in the gaming industry, earning a reputation for developing highly engaging and diverse gaming experiences.

The Revival of Sega’s Classic Games

In recent years, Sega has embraced the nostalgia factor by reviving its classic games and consoles. While the company has no plans to return to hardware production, it has embraced the trend of classic game revivals, bringing beloved titles from its past to new audiences. These revivals offer fans of all ages the chance to experience the magic of Sega’s classic games with modern twists.

Mini Consoles: A Blast from the Past

Sega capitalized on the retro gaming trend by releasing mini versions of its classic consoles like the Mega Drive Mini and Mega Drive Mini 2. These compact, plug-and-play consoles come pre-loaded with some of Sega’s most beloved games, such as:

• Sonic the Hedgehog
• Street Fighter II
• Golden Axe
• Castlevania: Bloodlines

These mini consoles, though small in size, have been a huge success and have brought back the excitement of retro gaming for both seasoned gamers and newcomers alike.

Reviving Classic Games on Modern Platforms

In addition to the mini consoles, Sega has also been re-releasing its classic games on modern platforms. Through initiatives like the Sega Forever app and the Sonic’s Ultimate Genesis Collection for consoles, Sega has made many of its iconic titles available to a new generation of gamers. Notably, the company continues to release classic Sonic titles, such as Sonic the Hedgehog and Sonic CD, on platforms like Nintendo Switch, PlayStation, Xbox, and PC.

Remakes and Remasters

Sega has also given some of its classic games the remake treatment, giving them a modern update with enhanced graphics and gameplay. For example, Sonic Mania, released in 2017, is a love letter to the original Sonic the Hedgehog games and was lauded for bringing back the nostalgia of the early 90s while offering new gameplay elements. Sega has also announced plans to release Shenmue 1 & 2 remasters, allowing new players to experience these beloved Dreamcast classics in HD.

Sega’s Focus on Game Development: What’s Next?

While Sega will likely never return to the hardware market, its continued success as a software developer is undeniable. The company remains a key player in the video game industry, and its commitment to producing high-quality games and reviving classic franchises will ensure that Sega’s influence remains felt for many years to come.

Looking ahead, it’s likely that Sega will continue to develop new installments in its iconic franchises while also exploring new gaming experiences for players. As the gaming industry evolves, Sega’s legacy of innovation and storytelling will undoubtedly continue to shape the future of gaming.

Sega's Future in Gaming

Sega's strategic shift from hardware to software has ensured the company’s longevity and ability to evolve with the changing landscape of the gaming world. Fans can look forward to continued revivals of classic games and perhaps even more modern interpretations of Sega’s iconic franchises.

If you're interested in revisiting Sega's classic games or exploring their current offerings, check out the following links:

• Sega’s Mini Consoles and Classic Games
• Sega's Revival of Retro Games
• Sega’s Future Game Releases and Partnerships

Sega may have left the hardware race, but its influence in the software space remains as strong as ever.