Ben Hurst, one of the writers for the 1993 "Sonic the Hedgehog" animated series, attempted to pitch a continuation of the show to Sega in 2002 as either a third season or a movie. He consulted DiC Entertainment, who produced the show (as well as two other Sonic cartoons, "Adventures of Sonic the Hedgehog" and "Sonic Underground"), and was given the name of a Sega executive who wanted to talk with him more about the idea. Hurst then received a call from Ken Penders, at the time the head writer for Archie's Sonic the Hedgehog comics, who had been made aware of Hurst's interest in making a movie based on the series. Hurst offered to include Penders in the project, and told him his strategy for the pitch was to develop a satisfying storyline to conclude the show, and simultaneously giving Sega ideas for new games. This resulted in a long-standing controversy where Hurst claimed that Penders sabotaged his plan by telling Sega that he was trying to co-opt the franchise, resulting in Hurst's dismissal from the project. Over 13 years after Hurst's death, Penders would give his side of the story in a 2023 blog post, claiming that Hurst's joint proposal between the two would involve asking Sega to pay them to produce the series, and doubted that Sega would even schedule a meeting to let them pitch it if Sega funding the pitch was the premise, stating that "the owner of any IP is looking for a payday when it comes to using the rights for their properties."

In September 2003, Penders pitched his own concept for a Sonic the Hedgehog movie, titled "Sonic Armageddon". Four pieces of concept art were produced, and even a homemade pitch video was made to show to Sega executives. From what is known about the pitch (which seemed to borrow elements from both the 1993 series and the Archie comics), it would have involved the planet Mobius being destroyed and changed the depiction of the roboticization procedure to something much more gruesome than what had been previously seen. Notably, several major characters (such as the Freedom Fighters sans Sonic, Tails and Sally) are not shown in either the pitch video or the concept art, and the characters that are shown are given major redesigns. A common belief is that DreamWorks Animation was Penders' choice to produce the film, but Penders would later state in 2019 that he had pitched the idea to Sega only, and that DreamWorks had no involvement. The film never materialized; Penders would later claim on separate occasions that the idea was dropped because of "massive corporate upheaval", as well as the development of the animated series "Sonic X" affecting talks regarding the film.