Posted on June 28, 2012 AT 10:58am
Sega’s financial losses during the last few years have forced the entire company to rethink their corporate makeup, and as a result, several offices in Europe and Australia will be shut down. Once offices in France, Spain, Benelux, Germany, and Australia are closed, Sega will continue downsizing as needed in the future.
According to a press release from Sega, their game distribution will now be handled by Koch Media in Europe, while Level03 Distribution and 5 Star Games are handling affairs in Benelux and Australia this coming July.
Sega’s Europe Headquarters in London will continue to oversee all the region’s operations. With office closures typically come a list of layoffs (at least for administrative jobs), but none have been mentioned by the company in their announcement.
From the PR spin:
“SEGA is entering a new and exciting phase that will position the company as a content led organisation maximising sales with strong and balanced IP such as Sonic the Hedgehog, Total War, Football Manager and the Aliens franchise”, commented Jurgen Post, COO of SEGA Europe. “The company will benefit from a clear focus and realigned strategy for our digital business and packaged goods and we are confident that this will lead to a successful future.”
Sega’s most recent fiscal year saw the developer take a massive hit—the company’s profits plumeted from $462 million to $243 million, with their revenue dropping by half a billion dollars. Trying to stem the bleeding, Sega opted to cancel several upcoming games and restructure, which will end up costing them an additional $86.5 million.
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