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Sega to cut 300 jobs (heavily arcade/pub staff), refocusing on digital/mobile/PC [Up]

Opiate

Member
Any large video game corporation that was making amazing systems and games a mere fifth teen years ago and have decided to focus on mobile is a dead company in my eyes. Of course, their PC output has been good so maybe I'm exaggerating a bit.

What if those mobile games are good? They've made some very popular, highly successful mobile games already.
 

Neff

Member
Yeah, anyone who thinks Sega is just going to stop making console games is indulging their inner drama queen.

They might be a fraction of what they used to be but they still make money on games, especially Sonic.
 

soultron

Banned
In addition, the Sonic and merchandising businesses will be reinforced to establish a structure which can generate stable profits.

How many Gamestop clerks need to be peppersprayed until SEGA learns Sonic is better dead than barely alive?
 
What do they even mean by Online PC games? I would have figured PSO2 avoidance of this region had to due with lack of confidence of the game's success. If SEGA is doubling down on Online PC games why not localize PSO2?
 

Opiate

Member
What do they even mean by Online PC games? I would have figured PSO2 avoidance of this region had to due with lack of confidence of the game's success. If SEGA is doubling down on Online PC games why not localize PSO2?

Browser games have potential, but the first and most obvious examples are Total War and Football Manager, games which are quite profitable for Sega and which sell exclusively through digital means in most (all?) of the world.
 
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.
.
 

On Demand

Banned
So, on the one hand, we already knew this--Sega is moving away from console games development towards mobile and PC. The remaining console games they make will be surefire hits in their biggest IPs, and they'll be few and far between.

But on the other hand, this article doesn't seem to be reacting to any new event. Like, it doesn't seem like Sega has taken a step towards that process today. It seems like "RocketNews24" has republished a Yahoo News Japan article which in turn was syndicated to JapanToday?

I would seriously caution against reading the headline and assume "today's the day they release no more console games" versus as recognizing the ongoing process.

Yeah i thought this was a new development from the earlier story. The site just decided to put up a "new" artical and add some drama to it.
 

Nintenyearold

Neo Member
I wonder if this affects the chance the yakuza games after 5 will come to the west? If they're less focused on console releases they'll probably be even more conservative on risking that..
 

JCX

Member
Nintendo needs to step in and buy them up.

I don't think that would be a good decision. Sega probably would have made games based on those properties if they were successful. At most I could see other companies buying underused IPs or maybe partnering with Sega in development (imagine an EAD Sonic), but not much more.
 
Browser games have potential, but the first and most obvious examples are Total War and Football Manager, games which are quite profitable for Sega and which sell exclusively through digital means in most (all?) of the world.

OK, so not just browser games, that's good to hear. Thanks!
 

orochi91

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.

Perfect summary.

Crisis averted.
 

Salex_

Member
If they focus their entire library on PC that's fine by me.
Do you like browser and F2P games?
Nintendo needs to step in and buy them up.

And happens next after this impossible scenario?

Will their successful PC IPs, Yazuka, their fighting games, and mobile games stop being made?

Are people constantly begging Nintendo to buy Sega using the same narrow mindset as the "Nintendo buy Capcom" crowd a few months ago? Do they want Megaman/Sonic exclusive to Nintendo so much that they think Sega/Capcom's successful IPs on other platforms should disappear? Even if this happened, why would Nintendo have a desire to make games for IPs that can barely (or not even) sell 1 million these days? They're sitting on IPs that can sell more than that.
 

NZOO

Banned
Been fun

Ouch,_OUCH.png
 

Aki-at

Member
Nintendo needs to step in and buy them up.

Reasons this is not going to happen but say if we even exclude Sammy from the equation for a minute;

- SEGA's mobile and PC division is actually successful
- What is Nintendo going to do with the extra fat from SEGA, their animation studios, toy division, arcade centres and so on?
- What does Nintendo do with the various PC studios SEGA owns?
- Why would Nintendo spend upwards of $2 billion to buy a "minor" 2 - 3 million+ series in Sonic which is the star draw?

The likelihood of this deal is as much as Nintendo being bought up by Microsoft.

Still a major blow though, as there will definitely be changes felt at the end of the day. It certain feels like their death, even though it isn't.

The changes have been felt for the last two years, there's not much else that's going to change since everything SEGA's been releasing recently has been very "safe" with the exception of minor new IPs and Phantasy Star Nova on the Vita.
 

Dynomutt

Member
Wow. So sad. This company used to make the Master System, Genesis, Saturn, and Dreamcast. I hope their IP's don't suffer ill fates oh wait....Sonic.
 

MUnited83

For you.
Browser games have potential, but the first and most obvious examples are Total War and Football Manager, games which are quite profitable for Sega and which sell exclusively through digital means in most (all?) of the world.

Football Manager in Europe is huge even in physical form.
 

Kintaro

Worships the porcelain goddess
Want to refocus on PC? Give me everything Sega. =D Port it all. Saturn stuff, DC stuff, Yakuka, Hatsune, etc. +1 sale for all of it. =)
 
Thanks for the heart attack OP. And thanks to the mods for merging this rapidly in to the existing thread to ease the shock and confusion. Yeah this is just a super late overly dramatic article echoing last month's news without any new evolution to the story. We knew all of this a month ago. Sega are scaling back console releases and refocusing on PC and mobile.

Also for those worried about Sonic Sega already stated that they're going to be reinforcing Sonic moving forward so Sonic on consoles is still safe.
 

Labadal

Member
I don't understand why anyone likes that game. You can't even play soccer! All you do is manage the teams! Besides, soccer is boring, not like the NFL. 2/10.
That's a bannable offense, right here.

Football Manager was so addicting when I used to play it. Once you win something it feels like your chest is about to explode with joy. On the other hand, my monitors have taken so many beatings over the years.
 

Xeroblade

Member
Reasons this is not going to happen but say if we even exclude Sammy from the equation for a minute;

- SEGA's mobile and PC division is actually successful
- What is Nintendo going to do with the extra fat from SEGA, their animation studios, toy division, arcade centres and so on?
- What does Nintendo do with the various PC studios SEGA owns?
- Why would Nintendo spend upwards of $2 billion to buy a "minor" 2 - 3 million+ series in Sonic which is the star draw?

The likelihood of this deal is as much as Nintendo being bought up by Microsoft.

Guess I never thought of all the extra burden that would come from that decision. Maybe at the least other companies will buy the IP's that Sega has control of?
 

Atrarock

Member
Wow. So sad. This company used to make the Master System, Genesis, Saturn, and Dreamcast. I hope their IP's don't suffer ill fates oh wait....Sonic.
They handled the master system quite while. Selling it to Tonka, buying it back, only for everything about the system to crash since Tonka had no idea how to market a video game console properly (going from toy trucks to video games is quite something).
 
Good to see that other thread moved to this one.

I just don't understand the spin from other sites (rocket news specifically) where they say the company is "seemingly" abandoning the hardware market. So what if they're focusing on mobile/pc? What if that works for them, and they do less (but hopefully better) console releases?

I want to be clear though - this isn't good either way, but they're at least trying to survive. As others are saying - Atlus is seemingly unaffected.
 
Atlus will be fine. Between the time the Sega news broke and now Atlus unveiled Persona 5 for consoles. Sega isn't abandoning console releases completely. They're just scaling back their console operations to franchises that are sure-fire hits. Persona is safe. Yakuza is safe. Sonic is safe as Sega even indicated in their initial statement when the news hit. We're just not getting a new Jet Set Radio, Streets of Rage or anything that would be considered a financial risk. Same goes for expensive and original new IPs like Binary Domain.

If this drastic action keeps Sega alive then so be it. And I say that as a hardcore Sega fan.
 

Eusis

Member
Browser games have potential, but the first and most obvious examples are Total War and Football Manager, games which are quite profitable for Sega and which sell exclusively through digital means in most (all?) of the world.
Forgot to bring those up in my prior post about games that may not make sense to bring to consoles, despite the fact that honestly Total War IS what I think of first when I think of Sega's PC support. Probably because the real worry to me is what's going on with Japanese development, as everything outside of that seems to be mainly cutting off fat, and the biggest casualties we care about are usually developers that can go elsewhere (Alpha Protocol landing with a thud and Sega unlikely to publish more Oblivion RPGs? Whatever we still got Pillars of Eternity.)
 

Aki-at

Member
Guess I never thought of all the extra burden that would come from that decision. Maybe at the least other companies will buy the IP's that Sega has control of?

Why would SEGA sell IPs that still makes them money though? And there's no need to sell the IPs they don't use anymore either unless they're strapped for cash (They still have over $1 billion in cash reserves.) since it's something companies' don't do unless a ridiculous offer comes in.

It should be noted the game division has been in the black ever since the restructuring, so they'll stick with the plan that's reaping them profits in their consumer division.
 

Inuhanyou

Believes Dragon Quest is a franchise managed by Sony
Never getting Virtua Fighter 6 now with that arcade closure :(

Hey Sega, before you close down, make sure to hand all Index's assets over to Sony ya hear!?
 
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