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Sega to cut 300 jobs (heavily arcade/pub staff), refocusing on digital/mobile/PC [Up]
- Thread starter Nibel
- Start date
Maybe Virtua Fighter will just switch to being a PC series.
or a mobile-only series, the horror
Phantasy Star Portable (yes, a new, sealed copy that I lucked into at a GameStop earlier this month) and Alien Isolation for PC at launch in October. Also, Bayonetta 2 technically is a Sega property, and I got that for Christmas.
Canis lupus
Member
Sad to see their arcade arm, the core of what make Sega (or made until Yu Suzuki left) Sega continue hemorrhaging, until nothing's left. Sega was basically arcade gaming to me.
and here I was maybe hoping for another
I can only hope the arcades see a revival with VR.
A portfolio of only F2P pc, FM/TW series, mobile and no more games like Yakuza, Valkyria Chronicles, Alien Isolation etc isn't exactly what makes me "all good".
Sad to see their arcade arm, the core of what make Sega (or made until Yu Suzuki left) Sega continue hemorrhaging, until nothing's left. Sega was basically arcade gaming to me.
and here I was maybe hoping for another
I can only hope the arcades see a revival with VR.
A portfolio of only F2P pc, FM/TW series, mobile and no more games like Yakuza, Valkyria Chronicles, Alien Isolation etc isn't exactly what makes me "all good".
Nothing stopping games like Valkyria Chronicles picking up an audience in their new markets. Plus Dawn of War 3 is likely in development.
Persona's essentially gone if it were Nintendo. Etrian Odyssey is essentially gone if it were Sony. Clearly, the answer is Microsoft.
What? Bayonetta, Vanquish, Mad World, Infinite Space, Anarchy Reigns, Resonance of Fate, Binary Domain, Condemned, The Conduit, Border Break, Sands of Destruction, Full Auto, Dinosaur King, Hatsune Miku: Project DIVA, Yakuza and Valkyria Chronicles count as "doing little" to develop new IP in the last decade? Alien Isolation, Total War: Arena and Sonic Unleashed-Colors-Generations don't count as innovations for existing IP over the last decade? I'm not sure you've been paying attention to this company.
flatearthpandas
Member
Clearly, the answer. Draw the maps with your Kinect!
Honestly, I think Persona could survive intact with Nintendo. It's not like it is known for pushing hardware. I'm not sure if that fanbase would survive, but hundreds of thousands of them bought a Vita for a P4 remaster so who knows?
Pro from Dover
Member
Is this why Fire Emblem x Shin Megami Tensei is the way it is currently?
vinnygambini
Why are strippers at the U.N. bad when they're great at strip clubs???
I was right ;.;
Honestly, the way PSO2 & Chain Chronicles + PC segment have been making bank comparably to retail releases - I'd also re-consider my business strategy.
That's a great reminder, but it's also worth noting that that pretty much all of those games failing to meet market expectations are why Sega are going so hard into digital right now. They couldn't do much in the face of abysmal retail sales during the PS3/360 years when Total War, Sonic and Football manager were keeping them afloat, and like you pointed out it's not like they didn't try.
flatearthpandas
Member
Freshly reconfirmed?
PeakPointMatrix
Member
As long as I get my spectacular big budget Sonic game for the PS4, there's still a reason to hope.
Crimsonclaw111
Member
I'm assuming this means we will be seeing many more PC and digital ports of SEGA's biggest new games that didn't make expectations.
Vanquish, Bayonetta, etc would make great ports on next gen as small priced downloads (say, $20 each).
Vanquish, Bayonetta, etc would make great ports on next gen as small priced downloads (say, $20 each).
Canis lupus
Member
The thing is that they're not going to make console games on other platforms and not release it on consoles. We might maybe see them using/repurposing the IPs for mobiles, apps or browsers, like it usually happens with dead IPs (shenmue city), but they will not be games we used to know.
MysticDistance
Banned
To those worried about ATLUS: They're fine.
When SEGA bought ATLUS, they made ATLUS their own company again. ATLUS is no longer absorbed by any company. ATLUS is ATLUS,CO.,LTD. This change was announced by SEGA SAMMY HOLDINGS in February 2014 and was finalized on April 1, 2014.
The ATLUS brand of Index Corporation became ATLUS,CO.,LTD. and their subsidiary Index Digital Media, Inc. became Atlus U.S.A., Inc.
SEGA acts as the distributor for ATLUS games in Japan, and SEGA SAMMY HOLDINGS is their stock holder and sales analyst. SEGA has nothing to do with the development of ATLUS games, nor have they ever.
Yes, SEGA does own ATLUS IPs, but for a different reason. The reason they own the ATLUS IPs is so they can be the exclusive distributor for ATLUS games in Japan, as well as help with publishing, and if ATLUS requests, help with development. This also applies to SEGA with ATLUS. ATLUS does not own the rights to SEGA games, but SEGA has allowed ATLUS to develop SEGA games if they would like. SEGA closing down SEGA divisions and other things of that matter do not, nor will, affect ATLUS. There have been no ATLUS games released with the SEGA logo next to ATLUS' logo. A copyright text is not a logo. For example: The recently released Devil Survivor 2: Break Record in Japan has SEGA in the text on the eShop banner (the banner that appears on the top screen of the eShop when you hover over a game). It says "株式会社セガ" (SEGA Corporation) next to the ATLUS logo because they are the distributor. If they were the developer, you'd see their logo. You can also see this text under the ATLUS logo for their recent games, as well. It says: "発売元：株式会社セガ" (Distributor: SEGA Corporation) Meaning, SEGA is not part of the development process or decision process of ATLUS. They've been distributing ATLUS games since before the buyout, after all. All ATLUS games have the ATLUS logo and text that says "ATLUS" or "アトラス" Meaning, all SEGA is, like I said, is a distributor and assistant in the publishing process in Japan, which is part of why they have the rights to their IPs.
There are two parts to SEGA Corporation. One part of SEGA Corporation makes software, and this is their website: http://sega.jp/ (Notice no ATLUS games at all? And if you do find one, it says SEGA Partners)
The other part of SEGA Corporation is located here: http://sega.co.jp/
Next is SEGA SAMMY Holdings, which ATLUS is a part of. They are a part of the SEGA SAMMY Group, which you can see here: http://www.segasammy.co.jp/english/pr/corp/group/list.html
Persona 5 is not the last ATLUS console game.
No. That's not why. SEGA has nothing to do with the development of ATLUS games.
Please, everyone, do not freak out every time SEGA has an issue. SEGA has many subsidiaries, which ATLUS is one of them. Even then, ATLUS is their own company and does their own thing. This isn't like when ATLUS was a brand of Index Corporation, where them having a problem means ATLUS had a problem.
When SEGA bought ATLUS, they made ATLUS their own company again. ATLUS is no longer absorbed by any company. ATLUS is ATLUS,CO.,LTD. This change was announced by SEGA SAMMY HOLDINGS in February 2014 and was finalized on April 1, 2014.
The ATLUS brand of Index Corporation became ATLUS,CO.,LTD. and their subsidiary Index Digital Media, Inc. became Atlus U.S.A., Inc.
SEGA acts as the distributor for ATLUS games in Japan, and SEGA SAMMY HOLDINGS is their stock holder and sales analyst. SEGA has nothing to do with the development of ATLUS games, nor have they ever.
Yes, SEGA does own ATLUS IPs, but for a different reason. The reason they own the ATLUS IPs is so they can be the exclusive distributor for ATLUS games in Japan, as well as help with publishing, and if ATLUS requests, help with development. This also applies to SEGA with ATLUS. ATLUS does not own the rights to SEGA games, but SEGA has allowed ATLUS to develop SEGA games if they would like. SEGA closing down SEGA divisions and other things of that matter do not, nor will, affect ATLUS. There have been no ATLUS games released with the SEGA logo next to ATLUS' logo. A copyright text is not a logo. For example: The recently released Devil Survivor 2: Break Record in Japan has SEGA in the text on the eShop banner (the banner that appears on the top screen of the eShop when you hover over a game). It says "株式会社セガ" (SEGA Corporation) next to the ATLUS logo because they are the distributor. If they were the developer, you'd see their logo. You can also see this text under the ATLUS logo for their recent games, as well. It says: "発売元：株式会社セガ" (Distributor: SEGA Corporation) Meaning, SEGA is not part of the development process or decision process of ATLUS. They've been distributing ATLUS games since before the buyout, after all. All ATLUS games have the ATLUS logo and text that says "ATLUS" or "アトラス" Meaning, all SEGA is, like I said, is a distributor and assistant in the publishing process in Japan, which is part of why they have the rights to their IPs.
There are two parts to SEGA Corporation. One part of SEGA Corporation makes software, and this is their website: http://sega.jp/ (Notice no ATLUS games at all? And if you do find one, it says SEGA Partners)
The other part of SEGA Corporation is located here: http://sega.co.jp/
Next is SEGA SAMMY Holdings, which ATLUS is a part of. They are a part of the SEGA SAMMY Group, which you can see here: http://www.segasammy.co.jp/english/pr/corp/group/list.html
Persona 5 is not the last ATLUS console game.
No. That's not why. SEGA has nothing to do with the development of ATLUS games.
Please, everyone, do not freak out every time SEGA has an issue. SEGA has many subsidiaries, which ATLUS is one of them. Even then, ATLUS is their own company and does their own thing. This isn't like when ATLUS was a brand of Index Corporation, where them having a problem means ATLUS had a problem.
ShinMaruku
Member
See you are un-effected by these changes.
BasilZero
Member
I hope it also leads to more games from their library to come out again like phantasy star 1 and hopefully we will see an atlas port to pc!
Dragoon En Regalia
Member
Very unfortunate to hear SEGA's arcade division is being downsized. It could be that Namco's finally won the war for arcade distribution and mindshare in Japan, bolstered by Tekken's accessibility and systems similar to VF TV for attracting crowds to machines. Both companies have done great in this area for decades, but I've always been on SEGA's side judging by the games made (complexity of Daytona USA vs. simplicity of Ridge Racer). This could mean we're never getting Border Break outside the home country, too...
Awful to see employees let go in any situation, and I hope the job market in northern California's looking good relative to housing costs. SEGA's transitioning into a digital-only model now, but I don't see them leaving console for PC/mobile only. SoA will be around to play shell for SoE/SoJ, I suppose; Sega West is largely held up by the European branch + developers, and SoJ has corporate lupus. VC on Steam did much better than expected during a heavyweight release period, so maybe the series producers will be able to make at least one more risky game for the IP? Hard to know anymore without turning on the despair button.
Awful to see employees let go in any situation, and I hope the job market in northern California's looking good relative to housing costs. SEGA's transitioning into a digital-only model now, but I don't see them leaving console for PC/mobile only. SoA will be around to play shell for SoE/SoJ, I suppose; Sega West is largely held up by the European branch + developers, and SoJ has corporate lupus. VC on Steam did much better than expected during a heavyweight release period, so maybe the series producers will be able to make at least one more risky game for the IP? Hard to know anymore without turning on the despair button.
With Atlus I think people get a bit lost in the forest.
Atlus is a subsidiary of Sega, yes, but so are most of their studios.
However, the way Sega operates as a business is that they try to move toward whatever they feel the most profitable direction is.
Sega Sammy's business directions apply to all their subsidiaries, but the way they're applied and implemented is going to be different depending on the products being made and the audience they're selling to.
Atlus has definitely ramped up their digital business to fit in. You see that through them adding progressively more DLC to their games and their Western localization branch focusing more on digital titles over retail games.
If some day it makes sense for them to make digital only games, they certainly will, but it's not like Sega's CEO walks up to each studio and goes "YOU DO THIS AND YOU DO THAT." They give directives like "We want you to increase your margin and here's the budget we're willing to work with for what you're proposing and let's discuss when we're going to release products so we can plan our slate and marketing decisions."
Atlus is a subsidiary of Sega, yes, but so are most of their studios.
However, the way Sega operates as a business is that they try to move toward whatever they feel the most profitable direction is.
Sega Sammy's business directions apply to all their subsidiaries, but the way they're applied and implemented is going to be different depending on the products being made and the audience they're selling to.
Atlus has definitely ramped up their digital business to fit in. You see that through them adding progressively more DLC to their games and their Western localization branch focusing more on digital titles over retail games.
If some day it makes sense for them to make digital only games, they certainly will, but it's not like Sega's CEO walks up to each studio and goes "YOU DO THIS AND YOU DO THAT." They give directives like "We want you to increase your margin and here's the budget we're willing to work with for what you're proposing and let's discuss when we're going to release products so we can plan our slate and marketing decisions."
Secret Character
Member
The confusion in here is huge...
What this mainly affects:
- Arcade Centers in Japan. This includes games like: Project Diva Arcade, Maimai, Code of Joker, Puyo Puyo Quest, and a couple other things.
- Development of future arcade titles. I'm sure we won't be seeing another Outrun or anything similar for a long, long time now.
- Reduction of labor for console releases
- Ramped production for mobile and PC titles
What this doesn't affect:
- Atlus or any of Sega's subsidiaries.
- Any part of SegaSammy holdings outside of the primary video game market (gambling machines, sponsored teams, etc.)
- PC or net service games like PSO2.
It's all in the document that the OP listed. Pretty clear that they're just refocusing to try and make some money in this market.
What this mainly affects:
- Arcade Centers in Japan. This includes games like: Project Diva Arcade, Maimai, Code of Joker, Puyo Puyo Quest, and a couple other things.
- Development of future arcade titles. I'm sure we won't be seeing another Outrun or anything similar for a long, long time now.
- Reduction of labor for console releases
- Ramped production for mobile and PC titles
What this doesn't affect:
- Atlus or any of Sega's subsidiaries.
- Any part of SegaSammy holdings outside of the primary video game market (gambling machines, sponsored teams, etc.)
- PC or net service games like PSO2.
It's all in the document that the OP listed. Pretty clear that they're just refocusing to try and make some money in this market.
MysticDistance
Banned
Exactly. Thank you.
That is correct. Thank you for understanding. I understand that people are worried about ATLUS, but SEGA is not ATLUS. ATLUS is their own developer and publisher, and SEGA abandoning their arcade business and whatever else they are planning to do does not affect their subsidiaries.
Yeah, I'm pretty OK with this news, I'm not tolling the death knell like others are in here. I had to say something when you insinuated that no one in this thread has bought a Sega game in years, though. I've probably bought at least one Sega game every year since 2002.
SmokedMeat
Gamer™
What experimentation and innovation was SNK doing with the Neo Geo? Lots of big words for a company that kept cookie pressing out the same tired series over and over.
AgentOtaku
Member
If Sega is not interested in their console franchises anymore, why don't they just sell them instead of letting them rot? I'm worried about retail Sonic now.
I would LOVE seeing Nintendo, inhouse developed Sonic game (^____^)
While I am more than ready for a PC infusion, I know it does stink to be in the crosshairs of a mass layoff so this is pretty much terrible news with a tiny silver lining.
The questions I have are:
-What will that mean for studio's like AM2?
-The arcade scene is BNB for the Virtua Fighter series, so I am wondering if they will be included in the layoffs or will they moved on to a different platform for a continuation of the VF series?
-Same question for the rest of their arcade fighting games?
The questions I have are:
-What will that mean for studio's like AM2?
-The arcade scene is BNB for the Virtua Fighter series, so I am wondering if they will be included in the layoffs or will they moved on to a different platform for a continuation of the VF series?
-Same question for the rest of their arcade fighting games?
I'll never agree with you about anything in the whole history of GAF, and i have accepted it, but saying that NEOGEO was safe and was milking KoF and Metal Slug sequels (as you said in you earlier post about SNK) is just mind boggling. NEOGEO had a huge library of amazing games, anything else said would be an understatement.
Ofc Sega had both more experimental and innovative games, and that's why its current state hurts more.
Fuck, I didn't even think of that.
FUCK.
Edit: That breakdown post above cleared some things up. Glad Atlus is fine, and hopefully there's still a chance for an Isolation sequel then.
They should focus on making good games. How in the hell can they not make a good Sonic. They had a golden franchise and threw it in the mud
StarCreator
Member
Losing 300 people hardly constitutes becoming a corpse. They are re-pivoting themselves into businesses that have been doing well for them and winding down elements of their business that are not. As mentioned above, most of the reductions are happening on the arcade side of their business, which hasn't operated outside Japan at all for at least a decade now. You're unlikely to see any changes from all this besides a greater push into the PC/mobile space.
AM2's been a key player in the Project DIVA and Project mirai series for a while now, having primary development duties on both. I'm not sure how much that is due to change, but AM2 has not been strictly arcade development for some time.
Secret Character
Member
I'm pretty sure AM2 was absorbed into Sega proper back in 2004. This cut mainly focuses on them, which is sad.
For VF, I'm sure we're not done with the series yet, but don't expect as many huge jumps in the series. If we see a VF6 in the next couple years, I expect it to be updated by a small team similar to current console games.
For the other fighting series, many of them are made by other companies and published on the Sega platform. If these games continue to be made, I suspect an agreement will be made with Taito to deliver content on their platform in the future. French Bread, ArcSys, and Tecmo all have a great chance of continuing to make games.
alexandros
Banned
It seems like a prudent direction for Sega, I don't really understand the doom and gloom here.
Activision Blizzard? or just the Activision part? I'm not really sure how the company is set up or what the digital offerings of Activision are.
But I agree, EA has made some good moves for long term profits in the digital/mobile realm, which is really hard to do.
Changes just brings problems. Vote Doug.
Sometimes I short hand Activision Blizzard as Activision, but Blizzard is overwhelmingly digital, CoD has very strong digital attach rates (and just sheer volume), and then Destiny is a very digital heavy product as well.
Skylanders is notably physical heavy, but it kind of has to be.
Beyond that they're also investing in f2p games on the Activision side like CoD: Online for China.
Bringing back Sierra was also a new digital strategy on the Activision side, while they've continued to ramp down on their licensed retail game business.
meanspartan
Member
So guess no Dreamcast 2 then huh?
Cheers.
Well, it depends on your perspective here. If you're a fan of Sega generally, then obviously this can be fine. They will keep making games using PC and mobile digital platforms.
But if you were specifically attached to Sega's console retail or arcade efforts, then the fact that Sega is still making games elsewhere may not be meaningful to you. Even if Sega makes great, successful mobile games, if you just don't want to play on mobile, then that does little for you, personally.
That's clearly the underlying conflict here.
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