Sega to downsize, axe certain games
by Dominic Sacco
Sega is expecting to post a loss of £54m (¥7.1bn) for its fiscal year ending March 2012, and has outlined plans to restructure.
Parent company Sega Sammy Holdings has today said it will carry out a ‘structural reform’ of Sega’s consumer business. It said it will ‘streamline’ its US and European video game operations and “create a smaller company positioned for sustained profitability”.
As part of the changes, Sega will reduce the number of games it produces and cut the development of several titles, while focusing more on digital content.
A statement read: “The Sega consumer business is expected to post operating loss due to the challenging economic climate and significant changes in the home video game software market environment in the US and Europe.
“It is essential to streamline [our] organisation in the field of home video game software, while shifting to a structure that corresponds to a change in environment, including strengthening development in the field of digital content.
“We decided to narrow down sales titles 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.”
Guess it's not surprising, because they've been posting losses for most of the past year with the occasional profit gain. Sucks that they only seem to do well with those four same franchises listed in the article: Sonic, Football Manager, Total War and Aliens. I'm personally not liking the sound of focusing on digital content, but that's the way the industry is going :-/ Hope they can start performing better soon and that no big titles are cancelled.