[duckroll]

http://www.segasammy.co.jp/english/p...ki_e_final.pdf
http://www.segasammy.co.jp/english/p...ku_e_final.pdf

The Consumer Business centered on SEGA CORPORATION is expected to post operating loss in the year ending March 2012, given the severe economic environment in the U.S. and Europe and rapid change in market environment of home video game software. Amid such business environment, the Company decided to implement structural reform of the Consumer Business at SEGA CORPORATION to strive for a shift to a structure corresponding to the market environment for the purpose of earnings recovery in the following period and after. In accordance with the decision, the Company is expected to record extraordinary loss totaling around 7.1 billion yen, including costs in line with the streamlining of organizations and the canceling of development of some game software and costs for processing inventory. As for the Consumer Business in the following period and after, the Company projects decreases in operating expenses due to the reform. Please refer to “Concerning Structural Reform of Consumer Business at SEGA CORPORATION” announced on the same day for details of the reform.

1. Reason The Consumer Business centered on SEGA CORPORATION is expected to post operating loss in the year ending March 2012, due to the challenging economic climate and significant changes in the home video game software market environment in the U.S. and Europe. Given this circumstance, the companies determined that in order to actualize earnings recovery of the Consumer Business in the following period and after and return to a growth path, it is essential to streamline organizations in the field of home video game software in the U.S. and European markets, while shifting to a structure that corresponds to change in environment, including strengthening development in the field of digital content. 2. Descriptions of measures (1) streamline organizations We will streamline organization in the U.S. and Europe home video game software. This will create a smaller company positioned for sustained profitability. (2) Reduction of number of titles We conducted detailed reviews of earnings projections for titles targeted toward the U.S. and European markets and decided to narrow down sales titles from the following period and after 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 canceling the development of some game software titles. (3) Booking impairment loss on work in process assets We will book impairment loss on work in process assets concerning some titles after reevaluating the profitability of work in process concerning game software which are going to be sold in the U.S. and European markets from the end of the current fiscal period to the following fiscal period. (4) Processing of inventory In accordance with the streamlining of organization in the U.S. and Europe markets, we will estimate allowance for expenses among game software inventories, including inventory on the market that is currently circulating. 4. Future outlook In the year ending March 2012, we are planning to record 7.1 billion yen in extraordinary loss as expenses in accordance with the structural reform, which the cost is believed to be 4.9 billion yen. Please refer to “Notice of Extraordinary Loss and Adjustment to the Forecast of Operating Results” announced on the same day as its forecast for the full-year consolidated operating results for the year ending March 2012. We expect operating expenses for the Consumer Business in the following period to decrease due to our latest efforts.

[Combichristoffersen]

RIP Bayonetta 2 :(

[Instro]

God damn

RIP Bayonetta 2 :(

Just pretend like it was never going to happen anyway!

[Negator]

RIP Bayonetta 2 :(

SHUT UP

Don't even go there.

[cw_sasuke]

...i thought they were the one makin at least some money ? Suprising.

[Blablurn]

does this mean they will stop making consoles?

[GavinGT]

Cancel all other projects, replace them with Sonic games.

[jonno394]

So Sega to only release Sonic, Total War, Football Manager and Alien titles henceforth?

[BD1]

It's sad how poorly the industry has transitioned to the "HD Generation" of gaming.

[dragonlife]

RIP PlatinumGames.

Sega should put more stuff on PC for sure now.

[burgerdog]

RIP Bayonetta 2 :(

Who owns the IP?

[Nirolak]

RIP Bayonetta 2 :(

SHUT UP Don't even go there.

Well, it's supposedly been ready to unveil forever, yet they haven't...

Who owns the IP?

Sega.

...i thought they were the one makin at least some money ? Suprising.

Basically only on Pachinko and a bit on casual arcade games like Soccer and Horse Racing.

[EatChildren]

If Bayonetta 2 is kaput I'm nuking the internet.

[duckroll]

You heard it hear first, any Sega game which isn't “Sonic the Hedgehog,”, “Football Manager”, “Total War” and “Aliens”, has been canned.

[Bebpo]

I thought they just posted huge profits last quarter while all their companion Japanese game companies posted huge losses. (and secretly we discovered 95% of the profit was from pachinko, and Sega's game division was just barely profitable).

[slaughterking]

When stores don't even stock your games you know you have a problem. Poor Binary Domain.

No more Yak localizations either.

[akilshohen]

The Platnium games all sold well though, right?

[Dalthien]

I thought they just posted huge profits last quarter while all their companion Japanese game companies posted huge losses. (and secretly we discovered 95% of the profit was from pachinko, and Sega's game division was just barely profitable).

To this day, I have still never understood why Sammy wanted anything at all to do with Sega.

[Bebpo]

You heard it hear first, any Sega game which isn't “Sonic the Hedgehog,”, “Football Manager”, “Total War” and “Aliens”, has been canned.

But they already canned an aliens game!

[duckroll]

The Platnium games all sold well though, right?

LOL, nope.

[PetriP-TNT]

Aw shit.

[jonno394]

When stores don't even stock your games you know you have a problem. Poor Binary Domain. No more Yak localizations either.

You son of a bitch....I didn't even think about this, now I think I might sob in to my work keyboard :(

[ZoddGutts]

You heard it hear first, any Sega game which isn't “Sonic the Hedgehog,”, “Football Manager”, “Total War” and “Aliens”, has been canned.

No not Phantasy Star Online 2 too!

[PKrockin]

Maybe this wouldn't have happened had you released Shenmue, Skies of Arcadia, and Jet Grind Radio on PSN/XBLA, genius.

i know.

[Pie and Beans]

And yet they choose to not release a whole swarthe of already developed and finished japanese content to make money in the west or even make deals with third parties to do so and generate revenue. Segaaaaaaaaaaaa~

PSO2 as f2p seems like something of a massive gamble at this point as well.

[trinest]

It's sad how poorly the industry has transitioned to the "HD Generation" of gaming.

When the wall finally calapaces, we can rebuild bigger and better.

[darkwing]

I worry about PSO2, Sonic save us!

[Suzzopher]

Best get those Dreamcast ports out stat. Not that they'd make much of a difference :(

[Nirolak]

No not Phantasy Star Online 2 too!

Unlike Bayonetta, I'd consider that one to be a Japanese focused brand, whereas they're mostly cutting their unprofitable brands that have to sell in the West (since they only spend like $5 on their Japanese market games).

[HylianTom]

When the wall finally calapaces, we can rebuild bigger and better.

Pretty much. I have a hunch that next gen is going to be very, uhh.., "interesting." And quite a bit depressing.

[earvcunanan]

Gaming industry isn't looking good after today and yesterday's news.

More THQ layoffs, Best Buy closing 50 stores across the US due to weak gaming sales and televisions, and now this.

[PetriP-TNT]

Okay, I'll call it. Sega to go all social games on FB and iOS.

[Bebpo]

You know, at some point every single gaming company that isn't Activision or maybe EA is going to go out of business at this rate.

Rebuild the industry from the ashes I guess?

[Reuenthal]

I am glad that Total War and Football Manager are safe. And I hope those franchises will remain for a long time.

[trinest]

You know, at some point every single gaming company that isn't Activision or maybe EA is going to go out of business at this rate. Rebuild the industry from the ashes I guess?

When that happens however the industry will only crash quicker.

[Seraphis Cain]

If Yakuza 5 doesn't make it to the US, I quit gaming.

[jonno394]

If Yakuza 5 doesn't make it to the US, I quit gaming.

Let's learn Japanese together instead!!

[Truth101]

HD has not been good to gaming.

[Gez]

Let's learn Japanese together instead!!

Better start learning for Kenzan then.

[JosephManderley]

Makes me sad to see what has become of one of the great games companies of my childhood.

A Football Manager game for the Wii U could make megabux though.

[subversus]

no Alpha Protocol 2 then? :(

mwahaha!

[Blablurn]

HD has not been good to gaming.

and new consoles are already coming. dont wanna how development costs will look like then.

[Jethro]

Sega goes iOS/android only :/

[Drencrom]

This is the end of Platinum games isn't it?

[jonno394]

Sega will focus entirely on kickstart projects to fund localisation of games henceforth.

[Screenboy]

RIP Dreamcast 2

[Truth101]

and new consoles are already coming. dont wanna how development costs will look like then.

Honestly if I was a publisher I wouldn't want next-gen to be a huge leap. Talk about death traps =/

[Arxisz]

Wow...just wow. The internet will have a meltdown if it's revealed that bayo 2 has been cancelled.

[HylianTom]

When that happens however the industry will only crash quicker.

A potential industry crash (or my favorite company going bye-bye) is enough reason for me to collect games, even if I don't play 'em for months or years. There's a 25-year backlog just waiting for me to unwrap them.

To steal an old NBC summer marketing line that they used for summer re-runs: "If I haven't played it, it's new to me!"

[TruePrime]

This is the end of Platinum games isn't it?

Sega doesn't own Plat.

Though I want to see who is willing to publish there games next. Outside of Bayo nothing has done that well. I guess they have MGS Revengence but I want to see who steps up for more new IP's from them.