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Sega Studios San Francisco

A San Francisco video-game developer formerly known as Secret Level that Sega acquired in 2006 and closed in 2010.

Last updated August 25, 2026

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Overview

Sega Studios San Francisco was an American video-game developer based in San Francisco, California. It operated originally as Secret Level, Inc., a studio founded in December 1999 by Jeremy Gordon, Otavio Good, and Josh Adams. The company combined conventional game development with technology and work-for-hire services, making it unusual among small independent developers of its period. Its work included console ports, original games, user-interface tools, engine technology, art production, programming support, and specialized visualization projects. Secret Level’s early business structure divided its activities among Secret Level Games, Secret Level Tools, and Secret Level Technology. The divisions were later consolidated, but the model reflected the founders’ intention to diversify income beyond dependence on a single game. The studio worked across Dreamcast, personal computers, PlayStation 2, PlayStation 3, PlayStation Portable, Xbox, Xbox 360, and GameCube-related technology. It developed tools for game menus and interfaces, supported Epic Games’ Unreal Engine on consoles, and undertook projects for publishers and technology companies including Epic, LucasArts, Konami, Ubisoft, Atari, and Sega. Its first released game was the Dreamcast version of Unreal Tournament, produced in cooperation with Epic Games. Secret Level added console-oriented work and additional content to the PC original, establishing a long relationship with Epic and Unreal Engine technology. The studio subsequently handled Xbox versions of Star Wars: Starfighter and Star Wars: Jedi Starfighter, while also developing Strobe: Flash for Games and later the Sidecar interface authoring environment. Strobe was intended to bring hardware-accelerated Flash-based interface playback to consoles; although licensing issues prevented it from becoming a continuing commercial product, related technology was used in the Starfighter projects. Secret Level’s first original game was Magic: The Gathering – Battlegrounds, released in 2003 for Xbox and Windows. The title translated the trading-card game’s creatures, spells, and enchantments into a real-time three-dimensional combat format. The studio also developed or ported Karaoke Revolution for Xbox and produced America’s Army: Rise of a Soldier for Ubisoft. Alongside these releases, it completed or explored numerous smaller projects, including support for SOCOM headset voice-over-IP functionality, proposed or canceled game concepts, military simulation content, architectural visualization, and other porting work. Sega acquired Secret Level on April 3, 2006, for a reported $15 million, making it Sega’s first North American studio acquisition during the company’s effort to expand its Western development capabilities. After the purchase, the studio was renamed Sega Studios San Francisco and expanded to nearly 200 employees. Its principal Sega-era projects were Golden Axe: Beast Rider, Iron Man, and Iron Man 2, all associated with the Xbox 360 and PlayStation 3 generation. The rapid expansion and demanding licensed-game schedules created production difficulties. Golden Axe: Beast Rider and Iron Man received weak or mixed critical responses, and the studio was reorganized in 2009 under Constantine Hantzopoulos. Sega announced on April 2, 2010, that it would close Sega Studios San Francisco after completion and release of Iron Man 2. The studio therefore ended operations as a Sega development unit in 2010. Its legacy rests less on a long-running proprietary franchise than on console engineering, Unreal Engine support, interface technology, porting expertise, and a portfolio that connected independent development with major publisher and technology partners.

History

Secret Level was established in December 1999 in San Francisco by Jeremy Gordon, Otavio Good, and Josh Adams. Its initial organization separated game production, tools, and technology into distinct legal entities, allowing the founders to pursue several kinds of development revenue. The divisions were subsequently combined, while the studio continued to balance original games with ports and contract work. The company’s first major release was a Dreamcast adaptation of Epic Games’ Unreal Tournament. Secret Level worked on the console conversion and added material intended for a console audience. This project led to a sustained technical relationship with Epic. Secret Level helped bring Unreal Engine technology to consoles including Dreamcast, PlayStation 2, and GameCube, supplied developer support, and created Unreal-related export tools for Maya. Its technology work became an important part of the studio’s identity. Secret Level also built middleware and interface technology. Strobe: Flash for Games was designed to use hardware acceleration to run Flash-style animation and menus on consoles. Although the commercial product was suspended after licensing complications, its technology was used in the console versions of Star Wars: Starfighter. The later Sidecar SDK provided a standalone environment for creating game interfaces and was used internally and by outside developers. LucasArts became one of Secret Level’s important publishing partners. The studio produced an enhanced Xbox version of Star Wars: Starfighter and then contributed substantial new material to Star Wars: Jedi Starfighter. Secret Level later developed its first original game, Magic: The Gathering – Battlegrounds, for Atari. Released in 2003 for Xbox and Windows, the game adapted the card game into real-time three-dimensional dueling and helped the company expand its art capabilities. During the mid-2000s the studio pursued a broad range of contracted work. It ported or supported games for publishers such as Konami and Ubisoft, worked on Karaoke Revolution for Xbox, and developed America’s Army: Rise of a Soldier. It also investigated projects that were eventually canceled, including a PlayStation 2 version of Oddworld: Stranger’s Wrath, a Sony pitch based on Robota, and a PSP version of X-Men: The Official Movie Game. Other assignments included headset voice-over-IP software, military simulation content, architectural visualization, and technology demonstrations. Sega began working with Secret Level on Golden Axe: Beast Rider in 2005. Impressed by the team’s progress and engine work, Sega purchased the company on April 3, 2006, for a reported $15 million. The acquisition was Sega’s first North American studio purchase during a broader effort to develop games for Western audiences. Secret Level became Sega Studios San Francisco and expanded rapidly, eventually reaching almost 200 employees. The renamed studio developed Golden Axe: Beast Rider, Iron Man, and Iron Man 2 for the PlayStation 3 and Xbox 360. The expansion and the demands of licensed-property development placed pressure on production. Golden Axe: Beast Rider launched in 2008 and was poorly received. Iron Man also drew mixed reviews, despite the commercial visibility of its movie license. Sega reorganized the studio in 2009 under Constantine Hantzopoulos, reducing the independent operating model associated with Secret Level. Sega announced the studio’s closure on April 2, 2010, after the release of Iron Man 2. The closure ended a decade of operations spanning independent development, middleware, console engineering, licensed games, and contract production. The studio is chiefly remembered for its technical contribution to console versions of Unreal Engine and for the range of development services it provided before and after its acquisition by Sega.

  • 2010

    Studio closed

    [1]

    Sega announced the closure of the San Francisco studio following Iron Man 2.

  • 2008

    Golden Axe: Beast Rider and Iron Man released

    [1]

    The studio shipped two high-profile PlayStation 3 and Xbox 360 projects.

  • 2006

    Sega acquisition and renaming

    [1]

    Sega acquired Secret Level and converted it into Sega Studios San Francisco.

  • 2003

    Magic: The Gathering – Battlegrounds released

    [1]

    The studio released its first original game for Xbox and Windows.

  • 2001

    Unreal Tournament reaches Dreamcast

    [1]

    Secret Level released its Dreamcast port of Unreal Tournament, beginning a long technical relationship with Epic Games.

  • 1999

    Secret Level founded

    [1]

    Jeremy Gordon, Otavio Good, and Josh Adams established Secret Level in San Francisco.

Products and positioning

A technology-oriented game developer combining original titles, licensed games, console ports, contract development, and middleware expertise.

  • Console port · 2001

    Unreal Tournament

    Secret Level developed the Dreamcast version of Epic Games’ PC first-person shooter. The adaptation included console-focused changes and additional content intended to make the game suitable for Dreamcast players. Its favorable reception helped establish Secret Level as a capable console engineering partner and led to further work supporting Unreal Engine on other platforms.

  • Licensed game port · 2001

    Star Wars: Starfighter: Special Edition

    Secret Level produced an Xbox version of LucasArts’ Starfighter. The Special Edition added content, playable ships, and enhanced level detail rather than serving as a simple platform conversion.

  • Licensed game support · 2002

    Star Wars: Jedi Starfighter

    The studio supported the Xbox version and created additional material, including game modes and a Coruscant level, expanding the console adaptation beyond straightforward technical porting.

  • Original video game · 2003

    Magic: The Gathering – Battlegrounds

    Released by Atari for Xbox and Windows, this game transformed Magic: The Gathering’s card-based creatures, spells, and enchantments into real-time three-dimensional duels. The project also supported the growth of Secret Level’s art department.

  • Console port · 2004

    Karaoke Revolution

    Secret Level completed an Xbox version of Konami’s karaoke game. The release was notable for using a vocal analyzer to evaluate a player’s pitch and rhythm and received an Editor’s Choice recognition from IGN.

  • Licensed military action game · 2005

    America’s Army: Rise of a Soldier

    Developed for Ubisoft and Xbox, the game adapted the U.S. Army’s America’s Army property for a console audience. It added a story campaign, new levels, and a single-player component inspired by Major Jason Amerine’s Afghanistan experiences. A planned PlayStation 2 version was canceled after performance targets could not be met.

  • Licensed action game · 2008

    Golden Axe: Beast Rider

    This Sega revival of the Golden Axe property was developed for PlayStation 3 and Xbox 360 using technology that evolved into the studio’s internal Riders engine. The game launched in 2008 but received strongly negative critical commentary.

  • Licensed superhero game · 2008

    Iron Man

    Sega Studios San Francisco developed the PlayStation 3 and Xbox 360 versions of Sega’s Iron Man movie tie-in. Other versions for Nintendo and Windows platforms were developed by a different studio, so this entry concerns only the San Francisco team’s high-definition-console work.

  • Licensed superhero game · 2010

    Iron Man 2

    The studio’s final major project was the PlayStation 3 and Xbox 360 version of Iron Man 2. Sega’s closure announcement in 2010 linked the end of the studio’s operations to completion and release of this title.

  • Development tool · 2005

    Sidecar

    Sidecar was a standalone SDK and authoring environment for creating game interfaces and menus. It was used on internal and external projects, including X-Men: The Official Movie Game, and represented the studio’s continuing investment in tools in addition to game production.

Brand decisions

  • 2010

    Sega closes the studioOther

    Background

    Sega Studios San Francisco had produced Iron Man 2 after a period marked by rapid growth, licensed-game production challenges, and weak critical results for earlier releases.

    Action taken

    Sega announced on April 2, 2010, that it would close the San Francisco studio following Iron Man 2.

    Aftermath

    The closure ended the company’s operations and left the reported sequel to Golden Axe: Beast Rider uncompleted or unannounced.

  • 2009

    Studio reorganized under Constantine HantzopoulosStrategy

    Background

    The studio’s expansion and the disappointing reception of Golden Axe: Beast Rider and Iron Man created pressure for Sega to change its operating model.

    Action taken

    Sega reorganized the studio and reduced the autonomy it had previously exercised as Secret Level.

    Aftermath

    The restructured studio completed Iron Man 2 before Sega announced its closure in 2010.

  • 2006

    Sega acquires Secret LevelM&A

    Background

    Sega was expanding its Western development presence and had become impressed by Secret Level’s work on Golden Axe: Beast Rider and its technology capabilities.

    Action taken

    Sega purchased Secret Level for a reported $15 million and renamed the company Sega Studios San Francisco.

    Aftermath

    The studio expanded substantially and became responsible for several Sega-owned or Sega-licensed projects.

    Acquisition price. 15000000 USD (April 3, 2006)

Recent events

  • 2010

    Sega announces closure of Sega Studios San Francisco[1]

    Bankruptcy · Leadership change

    Sega announced that the studio would close following completion and release of Iron Man 2.

  • 2009

    Sega reorganizes the San Francisco studio[1]

    Leadership change

    Following disappointing results, Sega reorganized the studio under Constantine Hantzopoulos and reduced the autonomy it had held as Secret Level.

  • 2008

    Golden Axe: Beast Rider released[1]

    Product launch · Product generation

    The Sega Studios San Francisco-developed action game launched for PlayStation 3 and Xbox 360 and received notably poor critical reviews.

  • 2008

    Iron Man released[1]

    Product launch

    The studio’s licensed Iron Man game was released for PlayStation 3 and Xbox 360 in connection with the film property.

  • 2006

    Sega acquires Secret Level[1]

    M&A

    Sega acquired Secret Level and renamed the San Francisco developer Sega Studios San Francisco as part of its expansion of Western development.

Sources1 sources

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