The company, which makes games such as Football Manager and Mortal Kombat, has already met eight agencies about the brief, confirmed Sega Europe UK marketing manager Tina Hicks.
H&K, which took on the account in 2003 (PRWeek, 10 July 2003), was invited to pitch for the business but declined. The firm will stop working for Sega next week.
H&K senior account manager Steve Marks said Sega wanted to take 'a different direction' following a management reshuffle.
He added: 'This allows us to concentrate on other opportunities.'
The bulk of the brief involves promotion of Sega's games to the mainstream press.
Promotion of Sega games to trade magazines and specialist games magazines is handled in-house.
The review of UK PR follows a reshuffle of Sega Europe's management, which has seen the launch of a separate UK division under MD Alan Pritchard.