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Sega of America to be downsized and relocated to Southern California

ZeroGravity

ZeroGravity

Member
http://www.businesswire.com/news/home/20150129006720/en/SEGA-America-Relocates-Southern-California

SAN FRANCISCO--(BUSINESS WIRE)--SEGA of America (SOA), the North American operations for one of the world’s leading interactive entertainment companies, today announces its move from San Francisco to Southern California amid a downsizing of the business that will begin from January 2015 to early summer. The announcement was made today by SOA president and COO, John Cheng.

“We are confident that by relocating to Southern California we will be able to thrive, grow and become a stronger company because of it.”

“This move was crucial to keep SEGA operations moving forward throughout North America and to provide our millions of fans a strong pipeline of content across gaming, TV, merchandising, and more,” said Cheng. “We are confident that by relocating to Southern California we will be able to thrive, grow and become a stronger company because of it.”

Relocation packages are being offered to a number of employees, but there will be positions reduced from the company to streamline operations. The total number of employees affected by this move will be realized after the complete transition is finalized in early summer.

Cheng added, “We are sad to say goodbye to some of the best people in the business and are indebted to them for their hard work and dedication through the years.”

SEGA’s game release schedule will not be affected by the move. The Sonic Boom television series, currently airing on Cartoon Network in the U.S., will also continue its run through 2015.
Click to expand...

Looks like as many as 120 people may be out of a job:

TSSZ ‏@tssznews
120 employees have been asked to take a "voluntary retirement"--basically a buyout offer--from Sega, according to today's statement.
Click to expand...

More details here:

Seda said:
The 120 number is from Sega Sammy's JPN press release, not SOA's

Notice of Implementation of Structure Reform in SEGA Corporation
Click to expand...
 
Reallink

Reallink

Member
SoJ thought PSO2 has been out here for 2 years, and after learning the truth, went on a furious firing spree.
 
S

strongsauce

Neo Member
It's too expensive now for companies to have offices in SF unless it's there to attract programmers. Some Sony business units are also moving non-programming related positions back to Japan. Team doing the PS4 interface is staying in SF though
 
S

Seda

Member
The 120 number is from Sega Sammy's JPN press release, not SOA's

Notice of Implementation of Structure Reform in SEGA Corporation

2. Details of Measures for Structure Reform in SEGA
a. Enhancing efficiency in domestic businesses SEGA will review its business structures mainly in Amusement Businesses and will narrow down product lineup and withdraw or consolidate and downsize some of the services.

b.Soliciting voluntary retirement
Voluntary retirement will be solicited in the aforementioned businesses to be withdrawn or consolidated and downsized, while at the same time personnel will be repositioned in Digital Games and growth areas of Group mainly as development personnel, in order to establish a structure which can constantly generate profits. The purpose of these measures is to improve the business efficiency of the Group.

＜Outline of SEGA’s solicitation for voluntary retirement＞
Number of solicited employees: About 120
Solicitation period: About 2 weeks from 9 February, 2015
Retirement date: In fiscal year ending March 2015 (plan)

c. Enhancing efficiency in overseas businesses Local organizations managing packaged game software in Western markets will be streamlined. In the U.S., Sega of America, Inc. based in San Francisco will be relocated to Southern California by this summer and its existing office in San Francisco will be closed thereafter, which results in reducing fixed expenses, mainly in corporate functions. In addition, the Sonic and merchandising businesses will be reinforced to establish a structure which can generate stable profits.
Click to expand...
 
N

Norwegian_Imposter

Member
strongsauce said:
It's too expensive now for companies to have offices in SF unless it's there to attract programmers. Some Sony business units are also moving non-programming related positions back to Japan. Team doing the PS4 interface is staying in SF though
Click to expand...

I don't see the point with programming to be in a set city like san fran.
 
K

kenta

Has no PEINS
Wonder if they're going to bunk up with Atlus in Irvine. Kind of makes sense to consolidate like that I guess?
 
Surface of Me

Surface of Me

I'm not an NPC. And neither are we.
Do companies normally offer buy outs for laid off employees? If not, good on Sega for at least giving something to those they are letting go.
 
pants

pants

Member
Reallink said:
SoJ thought PSO2 has been out here for 2 years, and after learning the truth, went on a furious firing spree.
Click to expand...

I feel real pain when people mention PSO2. Even though I played it on the JPN servers a ton, it's just not the same.
 
S

Sciz

Member
StoppedInTracks said:
Did SOA make any original games or just localisation etc.?
Click to expand...

Relic and Three Rings are under their umbrella, but AFAIK that's it for their surviving internal development. They still localize titles and publish the odd third party game, along with general brand management duties and some other miscellaneous work.
 
shaowebb

shaowebb

Member
Man can SOA get any smaller? Good luck to those they cut lose in yet another Sega downsizing. Hope they land on their feet.
 
Tizoc

Tizoc

Member
Reallink said:
SoJ thought PSO2 has been out here for 2 years, and after learning the truth, went on a furious firing spree.
Click to expand...

SoJ likely doesn't give a shit whether PSO2 gets localized for the west or not, which pretty much applies for much of its output I guess.
 
C

Curler

Unconfirmed Member
I don't get it... they localize super niche titles lately, not many of the one fans are begging for and then cut down?

I don't get Japanese business sense...
 
Havoc2049

Havoc2049

Member
SEGA’s game release schedule will not be affected by the move. The Sonic Boom television series, currently airing on Cartoon Network in the U.S., will also continue its run through 2015.

I was worried there for a second. Thankfully they didn't cancel the North American release of PSO2.
 
S

SuperChoco

Member
Understandable. Sega seems to be slowly moving ever so close to irrelevancy in the West. I'm still a little hopeful that PSO 2 will be released in the west, but this downsizing really diminishes that thought.
 
N

Nyoro SF

Member
...This could be bad for many of SEGA's efforts in America. I know sometimes the support internally given to project localization can sometimes be very small.
 
B

boltz

Member
Well, if they are looking for cheaper digs and more affordable housing for their workers, SD would make more sense than LA.
 
S

SegaShack

Member
It's so weird how the company that made so many of my favorite games is moving to my location. That being said, I really feel for the staff being cut.

Square Enix is actually across the street from my current job.
 
J

Jotamide

Unconfirmed Member
Sega has so much untapped potential it is ridiculous. They could pretty much live off putting out Dreamcast remasters and call it a day. Yet they localize a new game once every blue moon and keep pushing Sonic down our throats. If it wasn't for The Creative Assembly and Sports Interactive, these guys would have been irrelevant a long time ago.
 
S

strongsauce

Neo Member
silentchiloner said:
I don't see the point with programming to be in a set city like san fran.
Click to expand...
SF Bay Area is where a large majority of the big tech companies are located, programmers come because of the companies, more companies come because of all the programmers.

Add to that you have two universities (Stanford and Berkeley) that are considered to be top quality CS programs.


boltz said:
Well, if they are looking for cheaper digs and more affordable housing for their workers, SD would make more sense than LA.
Click to expand...

My guess is Irvine-ish/OC area. Depending on which parts of SD/LA/OC you're talking about, there's not much difference in terms of cost of living.

Lots of gaming companies in Burbank, West LA, and Irvine so I'm guessing they are probably going to move there if it's not SD. None of those places are very cheap, although Irvine probably has more surrounding cities that are more affordable.
 
V

vinnygambini

Why are strippers at the U.N. bad when they're great at strip clubs???
Hope those affected will land on their feat, terrible news.

Honestly, SEGA seem to be transitioning to a PC/Steam/Mobile market only; the only exception being their Sonic property that will continue to be available at retail. As such, a downsize was surely in the making and I guess the news is proof of that. Sad times.
 
D

Dragoon En Regalia

Member
Seems like SoE pulls most of the weight regarding PC sales, which are going to become the bottom line outside Japan. Very sad to hear more employees are going to lose jobs because of the relocation and downsizing; I hope this won't affect any community managers, nor the producers for SEGA 3D Classics over here.
 
S

StillEdge

Member
SegaShack said:
It's so weird how the company that made so many of my favorite games is moving to my location. That being said, I really feel for the staff being cut.

Square Enix is actually across the street from my current job.
Click to expand...
Right up the street from Square Enix is one of Activison's studios also.
 
C

Curler

Unconfirmed Member
I feel like now the only things they will work on is niche localizations, Sonic titles, and their PC titles they got from THQ.
 
J

Jarod McChicken

Member
From the Sega Sammy document, you can learn that the Sega of America relocation is also about to reinforce the merchandising business. Yay ?

Local organizations managing packaged game software in Western markets will be
streamlined. In the U.S., Sega of America, Inc. based in San Francisco will be relocated to
Southern California by this summer and its existing office in San Francisco will be closed
thereafter, which results in reducing fixed expenses, mainly in corporate functions. In
addition, the Sonic and merchandising businesses will be reinforced to establish a
structure which can generate stable profits.
Click to expand...
 
C

Creaking

He touched the black heart of a mod
Jarod McChicken said:
From the Sega Sammy document, you can learn that the Sega of America relocation is also about to reinforce the merchandising business. Yay ?
Click to expand...

0455974_1281_mc_tx360-a-classic-mel-brooks-comedy-but-without-the-passion-of-his-greats.jpeg
 
S

SuperAngelo64

Banned
So when sonic team was in San Francisco they took a lot of cues from the local skate culture, music, and architecture.

Sonic Adventure 3 will be Sonic and his shitty friends sitting around a pool hall complaining about traffic and getting into heated arguments over the best Korean fusion food trucks.

I'm in.
 
P

Parallax

best seen in the classic "Shadow of the Beast"
SuperAngelo64 said:
So when sonic team was in San Francisco they took a lot of cues from the local skate culture, music, and architecture.

Sonic Adventure 3 will be Sonic and his shitty friends sitting around a pool hall complaining about traffic and getting into heated arguments over the best Korean fusion food trucks.

I'm in.
Click to expand...

When chili bulgogi tacos become a thing, sega will be there.
 
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