Sega's Mobile Gaming Strategy Reshapes Asia Market Focus

Sega’s growing focus on mobile gaming signals a strategic realignment with the fast-evolving Asia gaming market, where mobile dominates.

Over 50 percent of Sega’s gaming business now comes from mobile platforms, in line with China gaming trends, where mobile accounts for 66 percent of total gaming expenditure. Globally, mobile gaming rebounded to $188 billion in 2023—49 percent of total revenue—and is projected to hit 55 percent by 2026. Sega’s $776 million Rovio acquisition (creators of Angry Birds) marks a major pivot toward mobile-first strategies.  

Key Highlights

• Sega sees 50 percent+ of its business from mobile gaming, pivoting from console.
• Strategic Rovio acquisition and Asia partnerships boost regional presence.
• Collaborations with Longtu and others help Sega navigate China’s regulated market.

The company admitted it “paid too much attention to console,” acknowledging the shift in consumer preferences, especially in smartphone gaming-first countries like Japan and China.

Sega’s past efforts in Asia—including a 1990s entry into India and South Korea—had mixed success. Learning from that, it’s now taking a country-by-country partnership approach across Southeast Asia, working with local players to navigate complex cultural and regulatory landscapes. In China, Sega partners with Longtu Game to compete against giants like Tencent and NetEase, which together dominate more than half of domestic gaming revenue.

China’s gaming market, valued at over $41.68 billion in 2023, is not only massive but also tightly regulated, requiring foreign companies like Sega to localize and collaborate. Meanwhile, Chinese firms themselves are rapidly globalizing, with international gaming revenues surpassing 100 billion RMB annually.

Also Read: Chinese Gaming Stocks Surge post Sacking of Regulator

Sega’s current model of licensing IP and forming alliances reflects smarter localization, allowing it to tap into Asia’s vibrant digital economy while avoiding regulatory pitfalls. The company is now better positioned to succeed in Asia’s mobile-first future.