SEGA to Restructure Games Business, Job Losses Imminent
Will focus more on digital output.
SEGA Sammy has posted some rather grim numbers for the close of its fiscal year, and has warned investors that it will be seeing job losses, cancelling games and streamlining its consumer operations as a result.
As part of the restructure, SEGA will focus more on digital content and its established IPs such as Sonic the Hedgehog, Football Manager and Total War. It will result, according to the company, in "a smaller company positioned for sustained profitability."
It originally forecast a profit of ¥40 billion for the year, but has predicted that the actual figure will be closer to half that - ¥20 billion, or £153m. Net sales revenue was ¥46,000 lower than expected. The total damage in terms of losses will amount to ¥7.1 billion (£54.3m).
More than half of the company's annual loss - ¥4.9 billion (£37.5m) - will be costs associated with restructuring its consumer business, which SEGA Sammy said will post an operating loss. This is "due to the challenging economic climate and significant changes in the home videogame software market environment in the US and Europe.
"It 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."
Such news is never welcome in the games industry. We hope those that will be affected all the best, and we hope that SEGA gets a bit of a break soon. The company has had a string of critically-acclaimed titles - most recently Binary Domain - which have been criminally overlooked at retail. That just makes this news even more bitter. Let's hope for some justice soon!
Via EDGE
As part of the restructure, SEGA will focus more on digital content and its established IPs such as Sonic the Hedgehog, Football Manager and Total War. It will result, according to the company, in "a smaller company positioned for sustained profitability."
It originally forecast a profit of ¥40 billion for the year, but has predicted that the actual figure will be closer to half that - ¥20 billion, or £153m. Net sales revenue was ¥46,000 lower than expected. The total damage in terms of losses will amount to ¥7.1 billion (£54.3m).
More than half of the company's annual loss - ¥4.9 billion (£37.5m) - will be costs associated with restructuring its consumer business, which SEGA Sammy said will post an operating loss. This is "due to the challenging economic climate and significant changes in the home videogame software market environment in the US and Europe.
"It 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."
Such news is never welcome in the games industry. We hope those that will be affected all the best, and we hope that SEGA gets a bit of a break soon. The company has had a string of critically-acclaimed titles - most recently Binary Domain - which have been criminally overlooked at retail. That just makes this news even more bitter. Let's hope for some justice soon!
Via EDGE
Companies:
SEGA
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