Layoffs at SEGA Cause Mass Cancellation of Games

Layoffs at SEGA Cause Mass Cancellation of Games

Looks like Sony isn’t the only company facing financial troubles lately. The once-mighty SEGA of America, faced with a 47% decrease in their annual revenue, was forced to lay off employees from many of its departments. Tweets and Reddit posts from various employees lament the sweeping job losses while SEGA of America restructures itself for a changed economic future.

Sega issued a statement detailing both their current situation and their plans for the future, saying: “Due to the challenging economic climate and significant changes within the interactive gaming industry, SEGA has made the decision to consolidate its publishing business in order to focus on developing digital content and driving its existing IP such as Sonic the Hedgehog, Total War, Football Manager and the Aliens franchise. This realignment of the business around existing and digital IP is a necessity to ensure that SEGA continues to invest and enhance its digital business offering, whilst reducing its reliance on traditional packaged goods.”
Unfortunately, their narrowed focus means that most other titles in production will be cancelled. Although many players will lament the loss of an array of SEGA’s games which were still in development, the company tries to balance the loss by focusing on the fact that they will be able to devote more time toward their flagship franchises.

SEGA’s official statement continues: “The changes will position SEGA as a content led organisation, maximising sales with a strong and balanced IP portfolio across both packaged and digital distribution. The management team are confident that the proposed restructure will benefit the company and make it fit for purpose within the changing nature of the industry over the coming years.”