Sega’s parent company, Sega Sammy Holdings, confirmed that it will use artificial intelligence in game development with the aim of increasing production efficiency as costs rise, but stressed that this will only be done in “appropriate cases” to avoid any negative reactions from the gamer community.
This statement came as part of an official summary of a question and answer session in English in the company’s financial report for the second quarter of 2026, issued on December 3.
Investors have questioned the inflation of game development costs in the current industry, and whether Sega will pursue this approach across larger projects or focus on enhancing efficiency.
The executives responded by explaining: “Instead of being completely drawn into massive development, we will also strive to increase efficiency, including relying on artificial intelligence.”
They added: “However, due to widespread objections to its use in creative fields, especially character design, we will continue to adopt it after careful evaluation of appropriate cases, such as improving workflow and reducing the time spent in the development stages.”
Sega’s move towards artificial intelligence comes amid clear financial pressures, coinciding with the decline in the performance of the Entertainment Contents division, which includes famous titles such as Sonic, Persona, and Yakuza.
The division achieved sales of 141.7 billion yen and operating profits of 18.7 billion yen in the second quarter of 2026, which are lower than the company’s expectations despite the initial successes of releases such as Sonic Racing: Crossworlds and Football Manager 26.
According to the report, sales of previous releases were lower than expected, while new games did not achieve strong sales despite their positive reception.
Management attributed this decline to players’ preference for independent games on the one hand, and for huge AAA games on the other hand, so that the AA level, on which a large part of Sega’s production depends, remains in a difficult area.
This transformation comes a few days after a Japanese report revealed that a medium-sized studio began asking applicants for artistic jobs to draw and design characters during interviews, after being exposed to what it described as “artificial intelligence deception” from some employees who failed to perform daily tasks.
In contrast, Sega is trying to present itself as a realistic player in the AI scene, focusing on its use for non-creative tasks with the aim of increasing profitability without angering the community that supports its games.
The company is preparing to launch a group of upcoming titles, including Yakuza Kiwami 3 & Dark Ties, and Football Club Champions 2026, in addition to a new game within the Super Game initiative, which is expected to be released in March 2026.
