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Rumor: Sega Europe about to close, no more Sega AAA, focusing on digital only

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wtf
 

Rlan

Member
I've always wondered just how far some of their brands really go. I mean Golden Ace and Streets of Rage are widely loved, but they released the 3rd SOR in very limited quantities and GA3 didn't even get a retail release. Why would they have done that? Seems like a real dumb thing to do, even in '93-95.
 
Publishing Platinum's games is probably one of the reasons why Sega is in this predicament to begin with.

The problems at Sega-Sammy pre-dated the GFC and had very little to do with publishing Platinum's games.

The parent company was in serious trouble as far back as 2007 when it posted a $250M loss and laid-off 400 employees, in an otherwise stable economic climate.

By early 2008 (still pre-GFC), Sammy closed down its European division and Sega Korea followed soon after.

Sega-Sammy's management structure has been resistant to change and they were brutal exposed during the GFC. Part of this was pouring large amounts of capital into areas without seeing a commensurate return, including game development.

However , the assertion that publishing 2 Platinum Games (one of which almost certainly broke-even for them) was a major contributing factor is pretty outlandish.
 
Doesn't Sammy own a good chunk of Sega? How would they let this happen? Did they let go of them or something? If that's the case, I cannot believe no other gaming company would step in to buy them out. I mean, I know their output has been more or less shit lately, but it's still fucking Sega which means they are sitting on a rich (and misused or underutilized) list of properties and franchises.
 

Beth Cyra

Member
Why do people want Sega to be bought/merged by 1st party developers? That's even worse for them considering how spread apart their fanbase is.

For certain people, continued support of titles like Mario and Sonic could be a very good reason.

Nintendo could very well pull support for this series or match up between the characters depending on who bought the Sonic IP if Sammy did end up wanting to sell IP's off.
 

mrklaw

MrArseFace
Yay sega, release loads of your popular old titles on phones and tablets to leverage the nostalgia factor.

And then when you've run out of old games that people are fond of, you'll have no new games to leverage
 

joeker

Neo Member
I'm certain Sega actually stated that Bayonetta was a success. I know it sold over a million copies.

Also, on a whole, this news is sad and depressing. Means Jet Set Radio HD may be the last gift to the hardcore Sega fans. While the end of Sega consoles was an end of an era, Sega leaving console games is another end of an era if true.
 

sublimit

Banned
Why do people want Sega to be bought/merged by 1st party developers? That's even worse for them considering how spread apart their fanbase is.

Personally i think Sony would be the ones to treat their IPs with the most respect since they are also the ones who are in need of SEGA's iconic IPs the most.
 

Shaheed79

dabbled in the jelly
I mean I don't know the specifics but didn't all of Platinum's games sell well into the hundreds of thousands? Or at least most of them. Something is effed with console development if you can sell that much and still take massive losses.

You don't say. The new 300,000 for profit returns is 1.5 million. Next generation the new 1.5 million will be 2 million+. Publishers are pricing themselves right out the market with their budget costs. Only 80$ games would keep that number under 2 million.

It really is aggravating watching them being taken out one by one until 90% of the game industry is ios centric. As an industry they are doing little to nothing to help turn this around.

They dare not tell us "Hey guys, if we do another graphical leap like from PS2/Xbox to PS360 then we may all be out of business within 4-5 years. We need to concentrate on other areas of game development until we get these budgets under control. So until then enjoy the 60fps, 1080p and 8xAA we can give you with our games.".
 

Terrell

Member
Why do people want Sega to be bought/merged by 1st party developers? That's even worse for them considering how spread apart their fanbase is.

Yeah, no one to blame but Sega for that, spreading exclusives around despite the Sega fan base not wanting that. A new console generation would be the right time to rally their troops again, so to speak.
 

Beth Cyra

Member
Personally i think Sony would be the ones to treat their IPs with the most respect since they are also the ones who are in need of SEGA's iconic IPs the most.

Sony has a major title in pretty much every genre that Sega has currently, so they really have no need of them outside of maybe Football Manager/Total War but both of these are PC based anyway and wouldn't for sure translate to console.
 

demolitio

Member
Ok, as a huge Total War fan, what happens to Creative Assembly? Will they be able to shop around for a new publisher for their next TW game after this one?

If this puts a damper on the TW series, then I really hope Rome 2 is being shown next week. :(
 

gogogow

Member
Doesn't Sammy own a good chunk of Sega? How would they let this happen? Did they let go of them or something? If that's the case, I cannot believe no other gaming company would step in to buy them out. I mean, I know their output has been more or less shit lately, but it's still fucking Sega which means they are sitting on a rich (and misused or underutilized) list of properties and franchises.

I think Sega are actually are dragging them down financially.
 

sublimit

Banned
Sony has a major title in pretty much every genre that Sega has currently, so they really have no need of them outside of maybe Football Manager/Total War but both of these are PC based anyway and wouldn't for sure translate to console.

What do they have that can match Sonic?
 

Beth Cyra

Member
What do they have that can match Sonic?

GT fucking destroys Sonic.

Not to mention, they have several franchises that do better then Sonic.

As posted earlier in this thread, Generations shipped around 1.9 Million. GT, God Of War, Uncharted 3, as well as others all easily outsold that number.

Sonic does good business, but it doesn't even come close per title to Sony's higher end selling franchises. If you are talking Platformers, then they still have franchises like Jak, Sly and Little Big Planet which may not equal Sonic, but all have followings and do very well for Sony.
 
Sensationalist much? You must write for the National Inquirer.

Will never happen, cause there will always be a market for hardcore gamers.

Just because you don't like the message it doesn't mean that it won't happen.

Developers and publishers are no different to other businesses. For a business to be sustainable they need to make a profitable return on the resources they spend on bringing a product to market.

Increased marketing and development costs do not sit well with a declining hardcore use base. Increasingly scarce users are milked for revenue at every opportunity so that titles can strive for profitability.

As making a profit or even breaking even on blockbuster budget titles becomes more of a crap shoot, publishers and developers alike will seek out less risky opportunities by developing smaller scoped titles on smartphones and tablets.

Huge blockbusters such as COD and Halo will continue to feed off an ever shrinking user base. But in the long run even the hardware manufacturers can't maintain a platform for the sake of a few titles unless they have tremendous IPs of their own (or offer other services on their gaming box) to sustain the costs of their business.

Pretty much any way you look at it, the core gamer is going to find fewer and fewer reasons to continue their hobby in the future. We'll be seeing a lack of innovation because publishers and developers won't want to risk increasingly large time/effort/cash/resources on unproven concepts. More and more game components that have been taken for granted in previous generations will be withheld from the initial release and sold as add on content. Core type games will be increasingly more marginalised in favour of add on mass market friendly services such as Film & TV on your gaming box of choice.

If you honestly think things are going to play out any differently to this in the long run, I'd really would like to read your reasoning behind such an argument.
 

Dacvak

No one shall be brought before our LORD David Bowie without the true and secret knowledge of the Photoshop. For in that time, so shall He appear.
I just can't see how this is true. Not from a denial standpoint, I just don't see how (despite how awful they are) Sonic games don't make money. Didn't Generations do relatively well?

Or maybe it is time, who knows? I feel like we're grabbing a shotgun and dragging Sonic behind the shed...
 

Beth Cyra

Member
I just can't see how this is true. Not from a denial standpoint, I just don't see how (despite how awful they are) Sonic games don't make money. Didn't Generations do relatively well?

Or maybe it is time, who knows? I feel like we're grabbing a shotgun and dragging Sonic behind the shed...


It did do well.
 

gogogow

Member
How can they go from "only focusing on AAA games" to "we won't be making any AAA games" within several weeks time.
 
I just can't see how this is true. Not from a denial standpoint, I just don't see how (despite how awful they are) Sonic games don't make money. Didn't Generations do relatively well?

Or maybe it is time, who knows? I feel like we're grabbing a shotgun and dragging Sonic behind the shed...

Yeah. I think at this point, it's still a rumor.

Can two hot-mess companies add up together to form one halfway decent one? If so, maybe they can merge with Konami.
 

sublimit

Banned
GT fucking destroys Sonic.

Not to mention, they have several franchises that do better then Sonic.

As posted earlier in this thread, Generations shipped around 1.9 Million. GT, God Of War, Uncharted 3, as well as others all easily outsold that number.

Sonic does good business, but it doesn't even come close per title to Sony's higher end selling franchises. If you are talking Platformers, then they still have franchises like Jak, Sly and Little Big Planet which may not equal Sonic, but all have followings and do very well for Sony.

I was talking about platformers.

And yeah i think none of Sony's platformers come even close to Sonic's popularity.
 

Beth Cyra

Member
I was talking about platformers.

And yeah i think none of Sony's platformers come even close to Sonic's popularity.

As a single brand? No, as a combined group? They likely do.

Not only that, but even if Sony did buy the Ip, they wouldn't take major talent like Santa Monica to work on Sonic. As it is they themselves are moving further into the FPS shooter/Hardcore crowd and their own platforming stable continues to take a backseat.
 

iavi

Member
How can they go from "only focusing on AAA games" to "we won't be making any AAA games" within several weeks time.

They actually said that they were canning all AAA dev outside of their biggest franchises and focusing on their DD catalog. This latest news would just be an extension of that.
 

sublimit

Banned
As a single brand? No, as a combined group? They likely do.

Not only that, but even if Sony did buy the Ip, they wouldn't take major talent like Santa Monica to work on Sonic. As it is they themselves are moving further into the FPS shooter/Hardcore crowd and their own platforming stable continues to take a backseat.

If a merging where to happen i imagine it would have happened with SCEJ and with the Sonic teams remaining intact.Only now they would have a more stronger publisher to back them up.
 

cyberheater

PS4 PS4 PS4 PS4 PS4 PS4 PS4 PS4 PS4 PS4 PS4 PS4 PS4 PS4 PS4 PS4 PS4 Xbone PS4 PS4
I for one have bought quite a few Sonic games for PC and consoles this year. Surely they sold well enough. What went wrong?


/Thinking about it. I've bought more from Sega then anyone else this year...
 

Petrichor

Member
Maybe Nintendo can buy Sonic and actually make a good game out of him now.

Nintendo have more franchises than they have developers to do something with them.

Microsoft would benefit most from a sega buyout but judging by their recent approach to first-party it seems unlikely that they'd make such an acquisition.
 

DeVeAn

Member
What I hate is that most of the time these rumors are true. But, we got a good amount of games coming from Sega so what the fuck? Damn maybe it's time to for me to exit the vg scene. I mean Capcom is practically dead to me Nintendo told me fuck off and let mom play. If Sega leaves consoles then what will I look forward to? No more Kazuma Kiryu? No Sonic? Fuck that!
 

Beth Cyra

Member
If a merging where to happen i imagine it would have happened with SCEJ and with the Sonic teams remaining intact.Only now they would have a more stronger publisher to back them up.

As has been pointed out several times, it's unlikely for Sega to merge or be bought given they are under the control of Sammy.

It would be much more likely (which is probably not at all for a long time) for Sammy to sell of individual pieces that are worth the most. Also Sony has dropped a few studios themselves this gen so it would be even more unlikely that they would want to buy Sonic Team along with the Sonic IP.
 
Why would they even announce this kind of company-gutting move during E3 week? They're gonna have to put up one hell of song and dance if they're attempting to somehow spin this into something remotely positive or worth getting excited about.
 

gogogow

Member
They actually said that they were canning all AAA dev outside of their biggest franchises and focusing on their DD catalog. This latest news would just be an extension of that.

Yeah, I remembered it wrong. I stand corrected.

While the company's console games business is declining, its digital and mobile game sales are exceeding expectations. In particular, its smartphone game Kingdom Conquest has surpassed 2.5 million downloads thanks in part to the release of an Android version in December 2011.

Not surprising after all, if rumour is true.
 
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