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Thread: Sega Hurting

  1. Sega Hurting

    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.

  2. #2
    Fuck. Sega has really improved over the last three years or so. Sonic 2006 and Unleashed would have earned this, but their recent stuff has been largely good.

  3. Maybe some of Sega's talent will go somewhere where they can be more successful now. Sega has always employed a lot of top talent, and has long underused that talent, so maybe this will be a good thing.

  4. Maybe. Look at Prope though, nothing great has come from them.

    If I'm not mistaken Toshihiro Nagoshi was promoted not too long ago, seemed like a chance for some fresh thinking within the company.

  5. Quote Originally Posted by Yoshi View Post
    Fuck. Sega has really improved over the last three years or so. Sonic 2006 and Unleashed would have earned this, but their recent stuff has been largely good.
    Sonic 4.

  6. Quote Originally Posted by Chux View Post
    Sonic 4.
    Dimps

  7. Quote Originally Posted by Low View Post
    Maybe. Look at Prope though, nothing great has come from them.
    There's always been a difference between companies like Prope and Game Republic who are just founded by one executive and companies like Platinum Games and Infinity Ward that represent a real reformation of all the high level talent from a studio. I know we want to think Yuji Naka is the man solely responsible for his games because he gets all the credit in the media, but it's not like that.

    And that's why those sorts of companies usually only happen because of massive layoffs.

  8. Maybe they'll give that Shenmue license to Suzuki now.

  9. Quote Originally Posted by Frogacuda View Post
    Dimps
    Dimps did SF4 too.

    Sonic 4's shittiness is on Sega. I know it's the business that Dimps (and TOSE, and 8ing) is in, but they get all the blame when it's bad and none of the credit when it's good.
    Last edited by Diff-chan; 30 Mar 2012 at 10:13 AM.

  10. Quote Originally Posted by Diff-chan View Post
    Dimps did SF4 too.

    Sonic 4's shittiness is on Sega. I know it's the business that Dimps (and TOSE, and 8ing) is in, but they get all the blame when it's bad and none of the credit when it's good.
    Well Takashi Iizuka is known for his more or less non-existent quality control, but when the problem is bad physics code, I tend to blame the coders.
    Quote Originally Posted by FirstBlood View Post
    Maybe they'll give that Shenmue license to Suzuki now.
    lol, that's cute.

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