Sega Sammy Holdings has announced it will incorporate AI into game development to enhance efficiency, but only in non-creative areas to avoid backlash. This decision comes as the company's major franchises face commercial challenges despite positive receptions. The policy was outlined in the firm's Q2 2026 financial report.
AI Integration Approach
Sega Sammy Holdings, the parent company of Sega, detailed its plans for AI in a Q&A section of its Q2 2026 financial report, released on December 3. Responding to investor questions about escalating development costs and industry trends toward larger projects, executives emphasized a balanced strategy. They stated: "Rather than fully following the trend toward large-scale development, we will also pursue efficiency improvements, such as leveraging AI. However, as AI adoption can face strong resistance in creative areas such as character creation, we will proceed by carefully assessing appropriate use cases, such as streamlining development processes."
This cautious adoption reflects broader industry tensions, including concerns over AI displacing creative roles. A recent report from Japanese outlet Daily Shinko highlighted a mid-sized studio's new interview policy requiring hand-drawn concept art to filter out underqualified applicants relying on AI tools.
Financial Context and Performance
Sega's Entertainment Contents division, encompassing franchises like Sonic, Persona, and Yakuza, reported Q2 2026 sales of 141.7 billion yen and operating income of 18.7 billion yen—figures that fell short of expectations. Recent releases such as Sonic Racing: Crossworlds and Football Manager 26 received favorable reviews but struggled with repeat sales. Executives attributed this to gamers favoring indie titles and high-budget AAA productions, positioning Sega's AA-scale games in a tough market.
The push for AI efficiency aligns with upcoming projects, including Yakuza Kiwami 3 & Dark Ties, Football Club Champions 2026, and an untitled entry in the Super Game initiative slated for March 2026. By focusing AI on workflow optimizations, Sega aims to address profitability pressures without alienating its community.