Layoffs at SEGA Cause Mass Cancellation of Games

on April 1, 2012 4:48 PM

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.”

 /  Staff Writer (Weekends)
Sto Austin is the man. Period. When not saving the world from the next generation of Metal Gears or throwing hadoukens at his detractors, chances are he's writing about someone else doing something similarly epic, possibly whilst smoking a cigar. He enjoys games with a strong emphasis on story, which typically fall into the RPG, Action/Adventure, or Horror genres, though he also has a soft spot for fighting games and has been known, when feeling saucy, to shred on some Guitar Hero or Rock Band. He currently divides his time between Florida and Maine, tromping up and down the East coast according to the whims of fate and fortune.