SegaSoft
A Sega–CSK joint venture that published PC, Sega Saturn, and online games primarily for the North American market.
Last updated August 24, 2026
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Overview
SegaSoft was a United States-based game publishing and online-services venture created in 1995 by Sega and CSK, which was Sega's majority stockholder at the time. Based initially in Redwood City, California, and later in San Francisco, the company was established to broaden Sega's software activities beyond the traditional console business and to support PC development and publishing in North America. The venture initially worked across PC and Sega Saturn software. Its catalog included Sega-linked projects, externally developed games, ports, and niche computer titles. Among its better-known publishing associations were Mr. Bones, Scud: The Disposable Assassin, The Space Bar, Rocket Jockey, Obsidian, Lose Your Marbles, and several titles made by or associated with Rocket Science Games. Although the company announced in 1996 that it intended to publish for every commercially viable platform, that broad platform strategy was not sustained. In January 1997, SegaSoft reorganized around PC software and online gaming. Its most distinctive initiative was Heat.net, an online PC gaming service launched in 1997 during Bernie Stolar's tenure as president of Sega of America. Heat.net combined game hosting, chat rooms, matchmaking, friend and profile features, support for Sega and third-party games, and an online rewards economy. It supported both games designed for internet play and certain IPX-compatible games through networking and tunneling technology. The service hosted titles such as Quake II, Baldur's Gate, Age of Empires, Unreal Tournament, and a range of SegaSoft-published games. Its branding presented online play as a peaceful alternative to real-world violence, using the slogan "Total peace through cyberviolence." Heat.net also introduced a loyalty and virtual-currency system. Members could earn "degrees" through gameplay, trivia, advertising, and other activities, while premium members could spend them in the service's online store, known as the Black Market. The system suffered from abuse because inactive users could leave computers connected to servers to accumulate rewards. SegaSoft attempted to control this behavior through "parking police" and related monitoring, but the rewards model remained difficult to manage. The service also supported Foot Soldiers loyalty memberships and HeatCIGL, a collegiate gaming league involving teams from registered schools and competitions centered on games including Quake III: Arena and Unreal Tournament. SegaSoft was ultimately unable to become a durable standalone publishing and online business. The company was disbanded in 2000, accompanied by staff layoffs. A portion of its personnel moved to Sega.com, a new Sega company responsible for the company's United States online presence. Heat.net and its collegiate league were announced for closure in September 2000, with the shutdown scheduled for October 31 of that year. SegaSoft's legacy rests primarily in its experiments with PC publishing, internet multiplayer, community features, loyalty systems, and organized collegiate esports before those models became standard parts of major console-platform networks.
History
SegaSoft was formed in 1995 as a joint venture between Sega and CSK. At the time, CSK was Sega's majority stockholder, and the new venture gave Sega a dedicated American publishing operation with room to pursue PC software as well as Sega Saturn releases. Its original headquarters were in Redwood City, California, before the company later operated from San Francisco. The venture's publishing work covered a broad selection of games rather than a single house style. Its releases included PC titles, Saturn-related software, ports, and games developed by outside studios. The catalog included Mr. Bones, Bug Too!, Rocket Jockey, Obsidian, The Space Bar, Scud: The Disposable Assassin, Three Dirty Dwarves, Vigilance, Plane Crazy, and titles connected with Rocket Science Games. SegaSoft also published software in educational, simulation, sports, puzzle, action, and virtual-makeover categories. Several announced projects, including G.I. Ant, Heat Warz, Ragged Earth, Sacred Pools, Skies, and a proposed Sonic X-Treme-related project, did not become released SegaSoft products. In 1996, SegaSoft publicly discussed publishing across all viable platforms. The plan was not realized. By January 1997, the company had restructured to prioritize PC software and online gaming. This change reflected SegaSoft's increasing interest in internet distribution, multiplayer communities, and network technologies rather than conventional console publishing alone. Heat.net became the central expression of that strategy. Launched in 1997, the service offered matchmaking, game rooms, chat, private messaging, profiles, and support for Sega-published and third-party PC games. It also used networking technology that allowed some IPX-compatible games to be played online even when their original designs did not directly support internet multiplayer. Heat.net hosted games ranging from Quake II and Baldur's Gate to Age of Empires, Diablo, Unreal Tournament, and SegaSoft releases such as 10SIX and Plane Crazy. Its service design combined communications, game discovery, community identity, and commerce in a way that anticipated later platform networks. Heat.net experimented with user incentives through a virtual currency called degrees. Participants could earn degrees through play, trivia, advertising, and other activities, while premium members could use them in the Black Market store. The system also included Foot Soldiers loyalty members and a collegiate competition known as HeatCIGL. HeatCIGL connected teams from more than a thousand registered schools and organized competitions around games such as Quake III: Arena and Unreal Tournament. These features demonstrated SegaSoft's attempt to make online gaming a continuing service rather than a one-time software purchase. The rewards system also revealed the operational problems of early online services. Users could leave computers connected while inactive and accumulate degrees, prompting SegaSoft to create monitoring efforts known as parking police. Such abuses weakened the economy and complicated the administration of the platform. In September 2000, Sega announced that Heat.net and HeatCIGL would shut down on October 31. SegaSoft itself was disbanded in 2000, with layoffs and the reassignment of many employees to Sega.com. Although short-lived, SegaSoft helped establish Sega's early North American experiments in PC publishing, online multiplayer, digital community management, loyalty programs, and organized competitive gaming.
- 2000
Heat.net and HeatCIGL close
[1]Sega schedules the shutdown of its online service and collegiate league for October 31.
- 2000
SegaSoft is disbanded
[1]The venture ends operations, with layoffs and transfers of many employees to Sega.com.
- 1997
Strategic restructuring
[1]SegaSoft shifts its emphasis to PC software and online gaming.
- 1997
Heat.net launches
[1]The company introduces its online PC gaming and community platform.
- 1996
Multi-platform publishing plan announced
[1]SegaSoft announces an intention to publish on all viable platforms, although the plan is not ultimately implemented.
- 1995
SegaSoft is established
[1]Sega and CSK create SegaSoft as a North American-oriented publishing venture for PC and Sega Saturn games.
Products and positioning
A North American Sega-affiliated publisher and online-gaming innovator focused on PC software, Sega Saturn releases, and internet multiplayer services.
Online gaming service · 1997
Heat.net
Heat.net was SegaSoft's online PC gaming platform, combining matchmaking, game rooms, chat, profiles, private messaging, support for Sega and third-party games, and an online rewards system. It used networking and tunneling technologies to support some IPX-compatible games over the internet. Its catalog included Quake II, Baldur's Gate, Age of Empires, Unreal Tournament, and SegaSoft-published titles.
Collegiate gaming league
HeatCIGL
HeatCIGL was a collegiate competition operated through the Heat.net ecosystem. Student teams represented registered schools and competed in games including Quake III: Arena and Unreal Tournament. The program extended SegaSoft's online-community strategy into organized competitive play and included tournament and scholarship prizes.
Video game
Mr. Bones
Mr. Bones was among the notable games published under the SegaSoft label. It formed part of the company's broader catalog of distinctive PC and Sega-related software during SegaSoft's mid-1990s publishing period.
Video game
Scud: The Disposable Assassin
Scud: The Disposable Assassin was a SegaSoft-published action title associated with the company's efforts to bring unconventional third-party and externally developed software to the market.
Video game
Rocket Jockey
Rocket Jockey was one of the games published by SegaSoft and formed part of its relationship with Rocket Science Games. The title illustrates SegaSoft's role in publishing externally produced PC software rather than only Sega-developed properties.
Marketing campaigns
- 1997Total peace through cyberviolence
North America
Heat.net promoted online gaming with messaging that contrasted virtual game violence with real-world violence, including the slogan "Total peace through cyberviolence."
Outcome. The campaign helped define Heat.net's identity as a distinctive online-gaming community, although the service was later closed in 2000.
Brand decisions
2000
Close Heat.net and HeatCIGLOtherBackground
SegaSoft's online service and collegiate league were operating within a venture that was nearing its end.
Action taken
Sega announced that Heat.net and HeatCIGL would shut down on October 31, 2000.
Aftermath
The closure preceded the disbanding of SegaSoft and the movement of many staff members to Sega.com.
1997
Refocus on PC and online gamingStrategyBackground
SegaSoft's earlier plan to publish across all viable platforms was not carried through.
Action taken
The company restructured around PC publishing and online gaming.
Aftermath
This strategy made Heat.net the company's principal distinctive initiative, but SegaSoft was ultimately disbanded in 2000.
Recent events
- 2000
Heat.net and HeatCIGL scheduled for closure[1]
Other
Sega announced that Heat.net and its collegiate gaming league would close on October 31, 2000.
- 2000
SegaSoft disbands and staff move toward Sega.com[1]
Leadership change · Other
SegaSoft was disbanded with layoffs. Many staff members were reassigned to Sega.com, which was created to manage Sega's online presence in the United States.
- 1999
SegaSoft partners with Chips & Bits for Heat.net commerce[1]
Other
Sega announced a partnership connecting Heat.net's online store with Chips & Bits, expanding access to games, hardware, and magazine subscriptions for service users.
- 1997
SegaSoft restructures around PC and online gaming[1]
Other
The company reorganized in January 1997, concentrating its activities on PC publishing and online gaming rather than pursuing a broad platform publishing plan.
- 1997
Heat.net launches as SegaSoft's online PC gaming service[1]
Product launch
SegaSoft launched Heat.net as a multiplayer, matchmaking, communications, and community service for PC games, supporting Sega-published and third-party titles.
- 1996
SegaSoft announces a broad multi-platform publishing strategy[1]
Other
SegaSoft stated that it intended to publish games for all viable platforms rather than limiting its output to the Sega Saturn and PC. The announced strategy was later abandoned as the company redirected its focus.
Sources1 sources
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