Sega Axes Jobs & Games

[Hadrian]

Not really much of a surprise, they are hardly churning out the hits are they?

Sega Sammy has warned investors that earnings and profits for the year ending March 31 will be hit by its underperforming games business, and is to cancel games and streamline its operations as a result.

The company expects net sales revenue for the fiscal year to be ¥46,000 lower than previously predicted. Overall net income, or profit, will be ¥20 billion (£153m), almost half the ¥40 billion it previously forecast.

The cause, Sega Sammy admits, is its consumer business, which will post an operating loss "due to the challenging economic climate and significant changes in the home videogame software market environment in the US and Europe."

To stimulate recovery and return the division to profit, Sega says it is "essential to streamline organisations in the field of home videogame software in the US and European markets while shifting to a structure that corresponds to [this] change in environment, including strengthening development in the field of digital content."

There will be job losses, resulting in "a smaller company positioned for sustained profitability." It is focusing more in its more reliable, long-running IPs including Sonic The Hedgehog, Football Manager, Total War and Aliens. Other, unspecified games will be cancelled entirely.

Sega Sammy plans to record unexpected, or "extraordinary" losses of ¥7.1 billion (£54.3m), of which ¥4.9 billion (£37.5m) will be costs associated with its restructure.

http://www.edge-online.com/news/sega-restructure-loss-making-games-business

 

[AlanJohn]

"Sega is still making money"

 

[RchUncleSkeleton]

Freaking aye, Sega! That's not the way you turn a profit, just start releasing better IP's and you'll be fine.

 

[prowler]

Whatever SEGA, IDGAF, just release PSO2 outside Japan.

 

[Foxi4]

They expect a net income of 20 billion yen - net income, meaning that all expenses are already subtracted. This is hardly a bad score in this economy, they're doing just fine.

 

[FAST6191]

46K yen.... isn't that around £350 or 550 USD. Typo I imagine but amusing none the less.

Anyhow "more reliable, long-running IPs including Sonic The Hedgehog, Football Manager, Total War and Aliens"

Oh dear?

 

[chartube12]

I would laugh so hard if Nintendo would buy them out or if they went to making games for mobile devices only.

 

[Saddamsdevil]

Make Sonic Adventure 3, problem solved.

 

[Guild McCommunist]

Make Sonic Adventure 3, problem solved.

You mean Sonic Colors?

Sega kinda hasn't been pumping out the money makers really. I mean almost every big name publisher has something that gives them big bucks, and if you don't, you're falling behind. Activision has Call of Duty, Nintendo has Nintendo games, Sony has Sony games, Microsoft has Halo and Gears of War, so on and so forth. Sega has published a lot of fantastic games that are pretty off the beaten track. Unfortunately, it looks like it's backfiring on them, which is a shame.

At this point, taking ventures with Valkyria Chronicles III and PSO2, as everyone would like, probably isn't the wisest decision. They need something that'll draw in some major cash before they can start taking leaps of faith, mostly with localizing Japanese titles that don't have a broad audience over here.

 

[Ultymoo]

Oi. What the hell IS football manager? Of what was listed, the only things that remotely have my interest are Sonic and Aliens, and even the latter is a stretch. I swear though, I better eventually see a copy of PSO2 running on my computer.

 

[Carnivean]

Oi. What the hell IS football manager? Of what was listed, the only things that remotely have my interest are Sonic and Aliens, and even the latter is a stretch. I swear though, I better eventually see a copy of PSO2 running on my computer.

One of the most bought and played games on steam.

 

[Foxi4]

Make Sonic Adventure 3, problem solved.

The problem with Sonic Adventure 3 is that 1 and 2 were so well-recieved that anything sub-par will push the fans into a state of complete amok and frenzy. London Riots would be nothing in comparison to what would happen to Sega HQ if they'd bucher it

 

[MelodieOctavia]

They need to release those naughty Sammy games here in the US. That would turn a profit.

 

[Hadrian]

Make Sonic Adventure 3, problem solved.

The problem with Sonic Adventure 3 is that 1 and 2 were so well-recieved that anything sub-par will push the fans into a state of complete amok and frenzy. London Riots would be nothing in comparison to what would happen to Sega HQ if they'd bucher it

Those games were sub-par.

 

[Foxi4]

Make Sonic Adventure 3, problem solved.

The problem with Sonic Adventure 3 is that 1 and 2 were so well-recieved that anything sub-par will push the fans into a state of complete amok and frenzy. London Riots would be nothing in comparison to what would happen to Sega HQ if they'd bucher it

Those games were sub-par.

Either you like'em or you don't. Those games are legendary.

 

[Smuff]

Remake Nights into Dreams, Burning Rangers and Panzer Dragoon Saga.

It's not the answer to your company's problems. It's more like the answer to my prayers - to get all the above before you fuck up for real and disappear forever.

 

[FAST6191]

Sonic adventures... legendary.... about the nicest thing I can say is at best they were forgettable and given just five years earlier they made sonic and knuckles that is a serious slip.

I reckon they could do well but short of more handheld/phone rereleases a proper shining or phantasy star sequel (do not get me wrong PSO caused some serious phone bills back when but I have no desire to bust it back out any time soon. Phantasy star 4 on the other hand gets replayed about every 8 months) will probably cost a bit too much money. Equally seeing the disappointment that was golden axe beast rider and shinobi before it I reckon I should know better than to even suggest streets of rage.

Thinking about it they do have a decent back catalogue and could do some serious damage if they leveraged it correctly. Probably not enough to make COD money but not just eking out an existence.

 

[Valwin]

i think they should just stop making Sonic games the thing is pretty much a death franchise that die back in 2002

 

[MelodieOctavia]

i think they should just stop making Sonic games the thing is pretty much a death franchise that die back in 2002

It's like they all got knocked in the head and forgot completely about what makes a Sonic game great.

 

[Foxi4]

i think they should just stop making Sonic games the thing is pretty much a death franchise that die back in 2002

It's like they all got knocked in the head and forgot completely about what makes a Sonic game great.

*Cough* Generations *cough cough* Colours *cough* They're on the right track now. I do admit that every single release for the Wii was rather unpleasant, with Unleashed as their saving grace minus the night time levels. Don't get me started on 2006... I... don't want to talk about it. That game makes me physically ill.