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Still from Paramount’s “Sonic the Hedgehog 2.”

Paramount

After Sega’s blockbuster adaptation of its classic Sonic the Hedgehog gaming franchise on the big screen, the company suggested it wants to replicate that success with other hit video games in its arsenal.

Speaking with CNBC at the Web Summit tech conference in Libson, Portugal, Tuesday, Sega Chief Operating Officer Shuji Utsumi said that the company is thinking of bringing more of its lucrative intellectual property to other platforms, including movies and the gaming platform Roblox.

“Sonic is reviving,” Utsumi told CNBC’s Arjun Kharpal, alluding to the success of the Sonic the Hedgehog adaptations in the box office.

Sonic the Hedgehog grossed $306.8 million in the box office, becoming a blockbuster win for the franchise even after initial angry reaction from fans over a poor rendition of the iconic character the first time Sega revealed it to the world.

Sonic the Hedgehog 2 did even better, banking $405.4 million at the box office.

After 'Sonic The Hedgehog' success, Sega wants to revive more classics

Now, Sega is looking to translate that success into other game adaptations. That might not just mean movies, Utsumi cautioned, adding that the company is looking at other ways to bring its IP to more consumers.

That could include bringing a Sonic experience to the Roblox gaming platform, where millions of people gather to build games and connect with each other in massive online communities, as well as mobile, too.

The company recently closed its acquisition of Rovio, the maker of the Angry Birds mobile game, for 706 million euros ($767.9 million).  

“We have other major IPs,” Utsumi said. “We are thinking of reviving other classical IPs too.”

Bringing Yakuza and Persona to more platforms

Utsumi highlighted the Yakuza beat ’em up game and Persona role-playing game franchise as examples that could be adapted.

It comes as Sega is set to launch a new Yakuza game, Like a Dragon: Infinite Wealth, next year. The company is also launching two new Persona games in 2024, too.

“As I say, we are trying to be in a lot of different categories, different areas like Roblox, movies,” Utsumi said. “All these IPs can be somewhere else other than games soon.”

Sega plans to ramp up mobile gaming push

Sega recently launched the latest iteration of its Yakuza game. Collectively, the Yakuza game series has sold 21.1 million units since its debut in 2005, according to Sega. Persona 5, the latest game in the franchise, has also seen considerable success selling over 9 million copies worldwide.

Yakuza is currently only available on PlayStation, Xbox and PC. Platforms. Persona is currently only available on Xbox, PlayStation, PC, and Nintendo Switch.

Buying more studios

Sega is also on the hunt for more acquisitions as it seeks to expand its ownership of gaming studios, Utsumi said.

Utsumi suggested that the company would look to find more acquisition targets as opportunities in the market arise.

“As an entity of Sega Sammy, we are acquiring some of the companies. We just made an announcement [to buy Rovio]. We are still looking for opportunities for growth.”

Utsumi said that European gaming studios are “struggling” at the moment as they work to recover from the sales slump that followed the Covid-19 pandemic, as gamers emerged from lockdowns around the world and high inflation made people less willing to pay punchy prices for the latest titles.

“Japan studios are doing well. European studios are struggling,” Utsumi said. “I say all European developers are in a difficult time right now. Once, it was a kind of bubble. Now, it’s adjustment time.”

However, he struck an optimistic note for the future: “I think it’s going to be coming back. As long as you have solid development studios and also solid IPs.”

Sega isn’t the first company that’s looked to replicate the success of blockbuster entertainment franchises on other forms of media. Sony, Sega’s main Japanese gaming rival, made a big splash with its Spider-Man movie franchise, which the company adapted into several top video games.

No Microsoft deal on the cards

Utsumi also addressed rumors of Microsoft interest to buy the company.

The Redmond, Washington technology giant reportedly considered acquiring Sega as well as Bungie, the studio originally responsible for Halo, the Verge reported earlier this year, citing internal documents from a hearing in the Federal Trade Commission lawsuit seeking to block Microsoft’s acquisition of Activision Blizzard.

Sega’s operations chief dismissed the suggestion that Sega, which is owned by Sega Sammy Corporation, the company formed from the merger of Sega and Sammy Corporation in 2004, had any intention of being sold to another party.

“Many companies are interested. We feel honored,” Utsumi told CNBC.

“We have attractive IPs and potentials. Companies owned by the owner. A strong owner. I don’t think that kind of transaction is going to happen.”

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Tripadvisor stock surges 17% as Starboard Value builds sizable stake in online travel company

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Tripadvisor stock surges 17% as Starboard Value builds sizable stake in online travel company

The Tripadvisor logo is displayed on a tablet.

Mateusz Slodkowski | Sopa Images | Lightrocket | Getty Images

Tripadvisor stock jumped 17% Thursday after Starboard Value revealed a more than 9% stake in the online travel company, according to a securities filing.

The position was valued at about $160 million as of Wednesday’s close.

Tripadvisor shares have been flat since the start of the year after plummeting more than 30% in 2024. Last year, the travel review and booking company said it created a special committee to explore potential options.

Read more CNBC tech news

Starboard Value has gained a reputation for pushing for changes such as new CEOs and cost cuts by acquiring significant shares in companies.

Most recently, the firm settled a proxy fight with Autodesk, where it gained two board seats. It has previously pushed for changes at Tinder parent Match Group, pharmaceutical giant Pfizer and Salesforce.

The Wall Street Journal was the first to report the news late Wednesday.

Tripadvisor did not immediately respond to CNBC’s request for comment. Starboard declined to comment on the news.

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Apple’s China iPhone sales grows for the first time in two years

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Apple's China iPhone sales grows for the first time in two years

People stand in front of an Apple store in Beijing, China, on April 9, 2025.

Tingshu Wang | Reuters

Apple iPhone sales in China rose in the second quarter of the year for the first time in two years, Counterpoint Research said, as the tech giant looks to turnaround its business in one of its most critical markets.

Sales of iPhones in China jumped 8% year-on-year in the three months to the end of June, according to Counterpoint Research. It’s the first time Apple has recorded growth in China since the second quarter of 2023.

Apple’s performance was boosted by promotions in May as Chinese e-commerce firms discounted Apple’s iPhone 16 models, its latest devices, Counterpoint said. The tech giant also increased trade-in prices for some iPhone.

“Apple’s adjustment of iPhone prices in May was well timed and well received, coming a week ahead of the 618 shopping festival,” Ethan Qi, associate director at Counterpoint said in a press release. The 618 shopping festival happens in China every June and e-commerce retailers offer heavy discounts.

Apple’s return to growth in China will be welcomed by investors who have seen the company’s stock fall around 15% this year as it faces a number of headwinds.

U.S. President Donald Trump has threatened Apple with tariffs and urged CEO Tim Cook to manufacture iPhones in America, a move experts have said would be near-impossible. China has also been a headache for Apple since Huawei, whose smartphone business was crippled by U.S. sanctions, made a comeback in late 2023 with the release of a new phone containing a more advanced chip that many had thought would be difficult for China to produce.

Since then, Huawei has aggressively launched devices in China and has even begun dipping its toe back into international markets. The Chinese tech giant has found success eating away at some of Apple’s market share in China.

Huawei’s sales rose 12% year-on-year in the second-quarter, according to Counterpoint. The firm was the biggest player in China by market share in the second quarter, followed by Vivo and then Apple in third place.

“Huawei is still riding high on core user loyalty as they replace their old phones for new Huawei releases,” Counterpoint Senior Analyst Ivan Lam said.

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Like Google, China’s biggest search player Baidu is beefing up its product with AI to fight rivals

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Like Google, China's biggest search player Baidu is beefing up its product with AI to fight rivals

Pictured here is the Ernie bot mobile interface, with the Baidu search engine home page in the background.

Future Publishing | Future Publishing | Getty Images

Chinese tech giant Baidu has bolstered its core search platform with artificial intelligence in the biggest overhaul of the product in 10 years.

Analysts told CNBC the move was a bid to keep ahead of fast-moving rivals like DeepSeek, rather than traditional search players.

“There has been some small pressure on the search business but the focus on AI and Ernie Bot is a key move ahead,” Dan Ives, global head of tech research at Wedbush Securities, told CNBC by email. Ernie Bot is Baidu’s AI chatbot.

“Baidu is not waiting around to watch the paint dry, full steam ahead on AI,” he added.

Baidu AI overhaul

Baidu is China’s biggest search engine, but — as is also being seen by Google — the search market is being disrupted.

Users are flocking instead to AI services such as ChatGPT or DeepSeek, which shocked the world this year with its advanced model it claimed was created at a fraction of the cost of rivals.

But Kai Wang, Asia equity market strategist at Morningstar, also noted that short video platforms such as Douyin and Kuaishou are also getting into AI search and piling pressure on Baidu.

To counter this, Baidu made some major changes to its core search product:

  • Users can now enter more than a thousand characters in the search box, versus 28 previously;
  • Questions can be asked in a more direct and conversational manner, mirroring how people now use chatbots;
  • Users can ask questions through voice but also prompt the seach engine with pictures and files;
  • Baidu has integrated its AI chatbot features, which enable users to generate photos, text and videos, into the product.

“This is more aligned with how people use ChatGPT and DeepSeek in terms of how they look for answers,” Wang said.

Outside of China, Google has also been looking to enhance its core search product with AI, highlighting how search has been under pressure from the burgeoning technology.

Baidu on the offense

Baidu was one of China’s first movers when it came to AI, releasing its first models and ChatGPT-style product Ernie Bot to the public in 2023. Since then, it has aggressively launched updated AI models.

However, the Beijing-headquartered company has also faced intense competition from fellow tech giants like Alibaba and Tencent, as well as upstarts such as DeepSeek.

These companies have also been launching new models and infusing AI into their products and Baidu’s stock has fallen behind as a result. Baidu shares have risen around 2.5% this year, versus a 30.5% surge for Alibaba and a 20% rise for Tencent.

“This is a defensive and offensive move … Baidu needs to be aggressive and perception-wise show they are not the little brother to Tencent on the AI front,” Wedbush Securities’ Ives added.

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