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Jeffery is looking beyond Sonic, which he says is "an amazing recruitment vehicle" for younger gamers but "loses its cool factor when you get about 12 years old." To compensate, Sega has focused on developing games for more mature audiences. In one of its most violent games, Condemned: Criminal Origins, players solve a series of grisly murders while engaging in bloody hand-to-hand combat. A sequel is due out this holiday season.
Billy Pidgeon, a program manager for the market intelligence firm IDC, says Sega is taking the right approach by not relying on just one or two potential blockbuster games. "You have to have a diversified portfolio right now," he says. "You can only get so much mileage out of Sonic and company."