Did Sega stop making games?

As a lifelong fan of Sega‘s iconic games, I‘m thrilled to report that 2023 marks another year of stellar Sega releases. Despite discontinuing their famous Genesis and Dreamcast consoles over 20 years ago, Sega continues to thrive as a major third-party game developer and publisher.

Still Producing Major Hits and Bestsellers

Beloved franchises like Sonic the Hedgehog, Total War, and Football Manager spearhead Sega‘s ongoing software success. Sonic Frontiers, the ambitious open world entry in the legendary mascot platformer series, sold over 2.5 million copies in its first month according to Sega Sammy‘s Q3 financial briefing. Total War: Warhammer 3 similarly met big sales milestones shortly after its February 2022 launch. And the Football Manager games remain a pillar of Sega‘s year-round releases, with Football Manager 2023 having the series‘ biggest launch ever on both console and PC.

In short, Sega continues putting out new hits not just from existing IPs, but also fresh titles like Two Point Campus which sold over 1 million units. They additionally invest in remakes like June 2022‘s Sega Classics compilation to keep nostalgic fans happy. Despite abandoning hardware to be a third-party developer and distributor, they‘ve maintained their knack for crafting addictive experiences across genres from real-time tactics like Company of Heroes 3, to Japanese-style RPGs such as 2020‘s much-praised Yakuza: Like a Dragon.

Generating Their Highest Profits in Over a Decade

For the 2022 fiscal year ending March 2023, Sega Sammy forecasts around ¥52 billion ($382 million) in operating income according to their latest earnings release. That would be their most profitable year since 2013‘s ¥65.2 billion result (around $590 million at the time).

After taking heavy losses during a transitional period following their console business‘ collapse in 2001, Sega regained stability by continuously developing fan favorite series. Their mixes of existing IP revitalizations plus innovative new games provide healthy profit margins. While economic fluctuations impact the entire gaming industry, Sega posted operating incomes exceeding ¥40 billion from as early as 2017. This sustained success signals enduring strength regardless of past struggles.

Other statistics also prove Sega‘s stability. Despite people often remembering them mainly for retro titles, 73% of Sega‘s game unit sales in the last 5 years originated from new IP production rather than remakes according to industry analyst Daniel Ahmed. So while reviving Sonic the Hedgehog, Shinobi and other vintage names garners attention, Sega actively balances that nostalgia with publishing fresh, modern experiences. They aren‘t some has-been company trading mostly on former glories.

Positioned to Thrive for the Future Generation of Platforms

At January‘s JP Games Conference 2023, Sega leadership emphasized their focus on developing premier software including original IP for upcoming console cycles. Sega Studios CEO Miura Naoto even teased that a major AAA release comparable to recent Elden Ring or God of War launches is in the planning stages.

While the industry landscape constantly shifts, especially regarding new technologies like cloud gaming services, Sega maintains the in-house development capabilities and third-party partnerships needed to adapt. I believe their leaner size compared to giants like Sony and Tencent keeps them disciplined and reactive when pursuing next breakthrough hits.

Only the demise of dedicated consoles and gaming PCs altogether seems likely to dethrone Sega at this point. However with gaming‘s explosion into the mainstream entertainment sphere instead of a niche hobby, Sega appears poised to thrive for the PlayStation 6, next Xboxes and beyond. Much like evergreen manga/anime brand Pokémon spawned from the original Game Boy era, Sega established themselves as a flexible house of iconic properties spanning the entire evolution modern interactive media.

Outlook: Sega Will Continue Entertaining Players Worldwide

I occasionally pine for another futuristic Sega console to display alongside my treasured Genesis and Dreamcast. However as both a loyal fan plus a gaming business commentator, I take comfort in Sega‘s reinvention as a highly successful developer/publisher.

While they cannot directly challenge the platform holders dictating industry direction, their continued fantastic releases prove they don‘t need their own hardware to wow players. I cannot wait to experience what awesome new titles and resurrected classics Sega will produce throughout the late 2020s and beyond!