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Sega Cutting Jobs and Cancelling Titles As Part of Streamlining Process

Posted on March 30, 2012 AT 07:43am

THE BUZZ: Sega will cut jobs and cancel titles in an attempt to streamline its video game business in Europe and the U.S.

Parent company Sega Sammy released a statement announcing structural changes, as Sega is set to announce an extraordinary loss for the financial year ending March 31 2012.

The statement reads:

“The Consumer Business centred on Sega Corporation is expected to post operating loss in the year ending March 2012, due to the challenging economic climate and significant changes in the home video game software market environment in the U.S. and Europe.”

“Given this circumstance, the companies determined that in order to actualise earnings recovery of the Consumer Business in the following period and after and return to a growth path, it is essential to streamline organisations in the field of home video game software in the U.S. and European markets, while shifting to a structure that corresponds to change in environment, including strengthening development in the field of digital content.”

Sega Sammy told Eurogamer that the majority of major titles will remain untouched: ”We conducted detailed reviews of earnings projections for titles targeted toward the U.S. and European markets and decided to narrow down sales titles from the following period and after to strong IPs, such as Sonic the Hedgehog, Football Manager, Total War and Aliens, which are expected to continue posting solid earnings.”

“In accordance with this, we are cancelling the development of some game software titles.”

EGM’s TAKE: What this statement basically says is not to expect Sega to be taking any more risks with original IPs in the near future. All of its solid and reliable sellers will remain completely untouched in an attempt to turn a profit during the next fiscal year. This is a bit of a loss to fans who like to see new and original games on the market, but it’s also good to hear that the company isn’t doing anything drastic. These are tough times.

Matthew Bennett, Associate Editor
Matthew Bennett finally got his big break with EGM three years ago, following years of volunteer work for various sites. An ability to go many hours without sleep and a quick wit make him ideal for his role as associate editor at EGMNOW.com. He often thinks back to the days when the very idea of this career seemed like nothing but an impossible dream. Follow him on Twitter @mattyjb89. Meet the rest of the crew.

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