Joined in 2004. Senior Executive Manager of the 3rd Development Division.
Entered the company as a part-time planning assistant for SONICTEAM, Ltd. Gained experience in managing the operations of SEGA's Online Game R&D Department for Phantasy Star Online 2 (PSO2); now serves as the series producer of PSO2: New Genesis.
Vice Executive ManagerKazuma Yoshida
Joined in 2011. Vice Executive Manager of the 3rd Development Division.
Entered SEGA Network's Management Department as a mid-career hire. Transferred to SEGA Networks Co., Ltd. Currently serves as the producer of MJ Mobile.
Senior Technical DirectorShinya Matsunami
Joined in 2004. Senior Technical Director of 3rd Development Division, 3rd Online R&D Department #1/Programmer.
Developed action games as part of SONICTEAM, Ltd. before moving over to PSO. As the technical director, manages the programming/engineering team and oversees all technical matters.
Sharing Over 20 Years of Online Game Development Creativity With the World
The Next Step for the 3rd Development Division
With multiple online games that have run for over 10 years under their belt, SEGA's 3rd Development Division is setting their sights globally. With a focus on GaaS (Games as a Service), they develop and operate games across PC, consoles, mobile, arcades, and various other platforms. The 3rd Development Division doesn't define itself as a development division, but rather as a research and development division.
They're currently developing a new Crazy Taxi, bringing the series back from a 20-year hiatus, along with other new titles.
As they tackle new challenges with their decades of industry experience, the 3rd Development Division is at a major turning point.
Today, we're joined by Senior Executive Manager Yuya Kimura, Vice Executive Manager Kazuma Yoshida, and Manager Shinya Matsunami. We asked them about the 3rd Development Division's mission, development approach, and the kinds of people they hope to work with.
Where Meritocrocy Trumps Tenure
First, could each of you please tell us about your background?
Kimura
I joined SEGA as a part-timer, spent time as a contract worker, and then transitioned to a full-time employee. Initially, I had no prior experience in the gaming industry. I honed my game development skills while working as a planning assistant here.
I started out creating expansion quests as part of the Phantasy Star Online Operations Team, and I've worked on the PSO series for over 20 years. Now, I'm the series producer for PSO2: New Genesis. I am also senior executive manager of the 3rd Development Division, which means my duties extend beyond making games to monitoring our business activities as a whole.
Do part-time employees often advance to management positions?
Kimura
SEGA is a meritocracy, in the best sense. If you put in the effort and make the most of every opportunity, starting in a part-time position doesn't limit your potential for advancement. We may be a big company, but we don't have the traditional Japanese career path for new graduates. To name one example, over half of the management-level employees in the 3rd Development Division joined us as part-timers or mid-career hires.
Anyone who joins us in the future will be able to adequately advance their career if they apply themselves diligently.
Mr. Yoshida, could you tell us about your background as well?
Yoshida
After graduating university, I spent six years working in management at a Japanese car dealership. Afterwards, my love of online games compelled me to join a gaming company where I remained for six years. It was around that time when SEGA began recruiting for PSO2, and I joined SEGA as the team manager for the GMs (Game Masters).
SEGA eventually transferred me to SEGA Networks, which primarily focused on developing mobile games. After working there for a while, I returned to SEGA, where I currently serve as the vice executive manager of the 3rd Development Division and the producer of MJ Online.
Could you walk us through your career, Mr. Matsunami?
Matsunami
After graduating university, I wanted to make online games, so I joined SEGA. I started off on the Sonic Team working on action games and eventually switched over to PSO.
My main duties upon joining SEGA were programming tasks. Now, as part of the 3rd Development Division, I manage our programmers and oversee all tech matters as the technical director.
Breaking New Ground Through GaaS
Could you tell us about the 3rd Development Division's role in the organization, as well as the GaaS model?
Kimura
The 3rd Development Division produces titles using a GaaS (Games as a Service) model. Conceptually, this means that the game operates as a service. We generate revenue by updating the game on a daily basis as opposed to the number of units sold.
With titles across PC, consoles, mobile devices, and arcades, we're one of the few workplaces in Japan that has the infrastructure to develop and run our own cross-platform online games. Now that post-launch updates have become the norm even for console titles, I feel that the expertise we've built up through years of working on online games can be applied to a much broader market.
Matsunami
As a programmer, I'd say one of our strengths is the robust infrastructure we've built to analyze player behavior and trends. Using that data, we can determine which features contribute to a game's long-term success.
What do you consider most important when operating a game under the GaaS model?
Kimura
It's all about building lasting relationships with our players. That's where CRM (customer relationship management) comes in. SEGA as a whole has been ramping up that strategy over the past few years. SEGA Account, which launched last year, is part of that effort. By consolidating player data across platforms, we're able to use those insights to inform our direction for sequels, DLC, and the development of future games. This project is a prime example of our division's expertise in action, and I personally serve as the project's deputy lead.
When it comes to building relationships with players, does that extend to global audiences as well as those in Japan?
Yoshida
Global expansion is a major strategy for us. The first step we're taking is increasing the number of supported languages. In the past, our main focuses were Japanese, English, and major European languages, but we've recently started to include Chinese, Arabic, and other such languages into that mix.
This isn't because we're looking to sell directly in mainland China, but because the market of Chinese-speaking players living overseas has grown too large to ignore. Arabic requires additional effort to implement because it's written from right to left, but the gaming market in the Middle East is enormous. And we're not just talking about text; more of our games are receiving voice-overs in other languages as well.
Kimura
The shift toward digital distribution has also provided a major tailwind to our global expansion efforts. Physical releases were constrained by logistics and distribution, but in today's digital age, we can reach customers anywhere in the world. And now, more and more divisions approaching us to show them how it's done.
Supporting additional languages must cost quite a bit. What makes it worth the investment?
Yoshida
Not being able to play in their native language is a major barrier for players. Supporting these languages makes it easier to work with local media outlets, sales channels, and event partners, so the benefits extend well beyond the game itself.
Kimura
It's not something you can judge based on short-term sales alone. We use LTV (lifetime value), which helps us gauge a title's success over a period of three to five years. It's also about fostering the next generation of fans. We view this as a long-term investment, so we believe it's worth pursuing no matter the cost.
Decade-Long Hits and the Titles of the Future
Could you tell us about the games the 3rd Development Division is currently working on?
Kimura
Among our current games, the first that comes to mind is Phantasy Star Online 2: New Genesis. Now approaching its 15th anniversary, the game has released across multiple platforms, including PC and consoles.
Another is SEGA NET Mahjong MJ, which has been running on mobile for more than 12 years. There are very few companies in the industry that can say they have multiple games that have lasted for over a decade.
Yoshida
That said, longevity doesn't mean we've been doing the same thing for the past 10 years. By continually listening to player feedback and delivering regular updates, we've been able to keep them thriving to this day. That's one of the great things about GaaS.
Alongside these long-running games, are you also developing new ones?
Kimura
Yes. We're currently developing a new Crazy Taxi, bringing one of SEGA's most popular IPs back for the first time in nearly 20 years. With a dedicated fanbase, particularly in North America, it's a project with a strong global focus. We also have other new titles in the works. Drawing on more than 20 years of expertise and technical know-how, we continue to push the boundaries of what's possible. We hope you're excited to see what new games we have in store.
Refining Games Our Way
What sets your development style apart?
Matsunami
I'd say our defining characteristic is our culture of internal playtesting, which we call "private viewings." Before full-scale debugging and user testing can begin, we invite people from across the division and related teams to participate. Participants play the game and rate it through a questionnaire, and we use that feedback to refine it by comparing the results with those of past titles.
Kimura
At the heart of this approach is our belief that if we don't find a game fun ourselves, there's little point in putting it in front of players. We improve our games until we know it's met our standards before moving on to external testing. We place great importance on that process. The same goes for major updates, and even new hires take part when creating mini-games as part of their training. By exposing employees to this process from the moment they join, this mindset becomes second nature.
How do you come up with ideas for new games?
Yoshida
Once or twice a year, we hold an internal idea contest. It's open to everyone, regardless of role or seniority. Programmers, designers, planners, and even first-year employees are encouraged to take part. Categories include new game proposals, items and costumes for future updates, and even approaches to improve our internal workflows.
Kimura
The review process has evolved over time, and today all submissions are judged anonymously. And it's not just leadership that has a say; the entire division votes on the winners. We wanted to ensure that the views of younger staff carried just as much weight as those of more experienced employees. The best ideas earn the opportunity to be presented before the executives. There have even been cases where no proposals reached the executive presentation stage. However, since revising the review process, both the number of participants and proposals advancing have grown noticeably.
I believe internal competitions have value even if the ideas never make it to market. Letting employees put forth their own ideas shows off their creative approach to the higher-ups, which can lead to opportunities when similar projects begin. There have been actual instances where it has served as a stepping stone for someone's career.
Is it true that you're proactive about learning from other companies, including those within the SEGA Group?
Kimura
We believe in adopting good ideas wherever they come from, rather than trying to do everything ourselves. We also look to examples from other industries, including Software as a Service, and actively engage with companies that specialize in AI. Most recently, we had an opportunity to learn from Creative Assembly, another company in the SEGA Group and the globally renowned studio behind the Total War series. They generously shared expertise we didn't have, and gave us a lot of inspiration.
Yoshida
These sessions aren't limited to external guests; we also hold them regularly within the division. They're organized independently by programmers, designers, and planners, and are held once or twice a month. Participation is voluntary.
Employees across the company are free to participate, including those from other divisions, and they're archived so people can play them back whenever. Many mid-career hires tell us that these recordings has been invaluable in helping them get up to speed.
Driving Innovation Through Research and Development
What technical initiatives are you pursuing?
Matsunami
Over the past three to four years, we've invested a lot of effort into mastering Unreal Engine. Regardless of whether their projects use Unreal Engine, employees across the division have continued to dedicate part of their work hours to learning how to use it. As a result, we've become one of the knowledgeable divisions within SEGA when it comes to Unreal Engine. We've even had team members provide short-term support to other departments that have projects being made in Unreal Engine.
Yoshida
Getting to learn new skills beyond their current projects during work hours is a major benefit for our team members. As a division, we make time for learning opportunities that people want to pursue but might hesitate to ask for themselves.
Of course, we still need to be mindful of our project schedules, but over the long term, it helps elevate the division's overall skill set. We're able to make those calls because we're the 3rd Development Division.
Why is it important to be proficient with external engines as well as in-house technology?
Kimura
Unreal Engine and the like are highly capable and user-friendly, allowing teams to produce results in a short time frame. That said, the versatility has its trade-offs. To gain a competitive edge, there are times when we need to address those limitations ourselves. We often joke about over-customizing, but I think one of SEGA's strengths is having the ability to do so when necessary. Rather than simply using third-party technology as-is, we can modify it to meet our needs. That skill is what enables us to innovate.
Matsunami
Online games involve massive amounts of data, making performance optimization essential. In using external engines, we've been able to increase both the scale and efficiency of our development process.
Are there any other aspects of the division that make you stand out?
Kimura
We make a conscious effort to think of ourselves not just as a development division, but as a research and development division. Of course, our main job is developing and operating games. At the same time, we devote part of our resources to researching AI, emerging technologies, and areas where we still have more to learn. The reason is simple: if we focus solely on development and not on research, we won't be able to innovate and set ourselves apart.
In practice, we form small cross-project task forces, with members dedicating 10–20% of their time to research over a six-month period. Team members from across different projects come together to work on a shared theme.
Our Unreal Engine initiative is one example of this approach, and we're also actively exploring areas such as AI. That said, we approach the use of AI in player-facing products with great caution, given the legal and ethical considerations involved. We actively pursue internal research and experimentation to stay at the forefront of the industry and be ready to act when opportunities arise. Working closely with the company's Generative AI Committee, which promotes the safe and responsible use of generative AI, we also help evaluate new technologies early.
Matsunami
Because we're responsible for creating products that reach players, we're able to translate that research into practical applications. Experimenting firsthand lets us gain more concrete and actionable insights.
Freedom Through Structure: A Philosophy Formed Through Years of Online Game Operations
Could you tell us once again what kind of department the 3rd Development Division is?
Yoshida
Having transferred between several departments within the company before joining this one, I can say iit's a bit special. There are clear rules in place, yet there's also a great deal of freedom. It may sound contradictory, but there are clear channels for people to advocate for the things they want to pursue. As long as you're willing to take advantage of the opportunities, you'll be able to open the door for new possibilities.
Matsunami
In operating online games, success depends on having systems in place to deal with issues when they arise. That mindset has permeated the organization as a whole. If someone wants to try something new, there's usually a way to make it happen, whether by launching a task force or making use of existing systems. It's an environment where good ideas are less likely to fall through the cracks.
Kimura
If I had to put it into words, I'd say it's a freedom built on order and fairness. Freedom without structure can create inequality. Rules are important, but they're not set in stone. They can be changed, provided we maintain that fairness. It's that foundation that gives people the confidence to speak up and take on new challenges.
Looking back, I think our organizational culture has been shaped by years of listening to and engaging with players. After all, fairness and order are essential to building a service that players trust and choose to stay with.
Can anyone propose changes to the rules?
Yoshida
Absolutely. Proposals can come from anyone. Decisions aren't made solely by senior leadership; discussions involve managers and frontline team members. Having worked in other divisions, that took me by surprise.
Kimura
I've always believed that the moment you start thinking "this must never be changed," you're in trouble. With GaaS, there are times when we even have to fundamentally rework the designs and systems we were confident in from the outset if doing so benefits players. Perhaps that's why the same mindset has naturally become embedded in both the way we work and the way the organization operates.
I understand that both the Senior Executive Manager and Vice Executive Manager are also producers. That's quite uncommon, isn't it?
Kimura
I suppose it is. While keeping an eye on the business side of things, they're also deeply involved in the realities of game development. Because management isn't their sole responsibility, they're able to exercise good judgment without losing touch with what's happening on the ground.
Yoshida
Having a foot in both worlds allows them to make decisions that are in the best interests of the division as a whole. When viewed at the project level, there are times when allocating team members to research can seem inefficient. At the division level, however, the value of investing in long-term skill development becomes much clearer. The ability to make calls with both perspectives in mind is an area in which our division excels.
Where Initiative Pays Off: The Ideal Candidate and Career Paths
What are you looking for in prospective team members?
Kimura
What we'd most like from experienced hires is for them to bring fresh perspectives into the division. We've been doing this for a long time, so it's only natural for certain habits to develop. So ideally, those who aren't afraid to challenge assumptions and ask, "Does this really make sense?" Those are exactly the kind of people we're looking for, and it's often those employees who go on to earn promotions. They can read the room, but they don't simply go along with it. People who can strike that balance excel in this division.
Yoshida
The environment, resources, and systems are already in place. There are learning opportunities, idea contests, and task forces that allow workers to pick up new skills. What matters is whether you're willing to make the most of them. For those eager to become producers or leaders, you may just find your way on a fast track to a key position if your proposal is accepted. In this division, taking action gets you further than waiting.
Matsunami
As for programmers, we'd like to see people who enjoy taking on new technical challenges. Those who are quick to act when they spot a way to make something more engaging or efficient. Communication is key, even for programmers. This is true whether you're presenting at learning sessions or sharing ideas with colleagues from other disciplines. The opportunities to practice are right before you, so even if it's not your strong suit, I'd encourage you to keep putting yourself out there.
What kinds of career paths are available?
Kimura
The division is home to generalists, specialists, and everything in between, with career paths tailored to each individual. Even those who join as specialists are encouraged to take on new roles and rotate across different areas of the business. In fact, we've seen server programmers become client programmers, and programmers go on to become planners and eventually directors.
With technologies such as AI evolving so rapidly, there are risks to relying too heavily on a single area of expertise. Particularly for younger employees, we encourage them to gain experience beyond their main skill set. We also do our best to support people who want to try something different.
Yoshida
Being assigned to a long-running game doesn't mean you'll spend years working on just that. People may shift between different responsibilities within a project, or move to new projects altogether. If you have a strength you'd like to build on, you'll find both the opportunities and the people to help you grow it.
Finally, what would you like to say to those thinking about joining SEGA?
Kimura
If there's one thing we're proud of, it's our technical capabilities in online game development. Very few companies, even on a global scale, have the capability to develop and operate real-time 3D online games for large numbers of players across multiple platforms. Building on that foundation, we're now pushing into new territory. For those who want to make a big impact, I believe there's no better place.
Yoshida
This is a division with no shortage of opportunities for those who take initiative. The opportunities are there. The rest is up to you. If you're interested, we'd love to hear from you.
Matsunami
Our division is constantly embracing new technologies. Let's experiment, tackle challenges, and create something special together. If you have a strong desire to grow, we welcome you with open arms.
* This article contains content from an interview conducted in April 2026.