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Sega announces extraordinary loss of 7.1 bn yen, layoffs, restructures, cancels games

Road

Member
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).
...b...but Pachinkos! Don't the returns from that make up for the loss?!
DON'T CANCEL YAKUZA 5 PLEASE!!!!!

How in the hell did they lose almost 90 million dollars? Sales to consumers are down but their pachinko business is doing just fine. How?

Sega Sammy Holdings (everything) is still forecasting profit of US$ 240 million for the fiscal year.

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R

Retro_

Unconfirmed Member
I am guessing Bayonetta 2 was probably first on the chopping block. It was probably canceled months ago.

Look at what you're doing

https://twitter.com/#!/PG_kamiya/status/185751654946181120

If you guys know something you should share. If you can't you shouldn't talk to each other about it on a public forum. Shit is just cruel. :x

I'd rather get Alpha Protocol 2 and Vanquish 2 over Beyonetta 2 right now. :(

I'm not particularly hungry for a Bayonetta sequel myself, but if one was in production I wouldn't wish it cancelled.

RIP PlatinumGames.

They making Rising with Konami they ain't goin nowhere
 

Freshmaker

I am Korean.
does this mean they will stop making consoles?

I hope so. Then they can focus their prolific game output and their new and old IP's to other consoles. Totally can't wait for Panzer Saga 2 as a multiplatform release. Sonic on Nintendo will be off the CHAIN!

No downsides to going software only at all.
 

frequency

Member
Let's be realistic here.
The huge loss is just because of R&D. And the restructuring is to prepare for their new direction - to be revealed at E3. The cancellations are so they can focus on their real big thing.

Sega is coming back into the hardware business.
 

Nirolak

Mrgrgr
Closer to $30M from what I hear. That said, if they've impaired Bayo2 (as they mention impairing some projects), it would still come out.

Also, sort of interesting that with the Japan market being down, there's no restructuring happening in Japan.

Europe, I totally understand (Game going under is a big impact I'm sure).

Impressive.

I would guess that they aren't restructuring Japan though since they already dropped almost all of their expensive console development there.

They can just drop Platinum's future contracts if Bayonetta 2 doesn't work out (and the Anarchy Reigns team regardless), and they're mostly done on that front since Yakuza is profitable, and I don't imagine their handheld games are very expensive.
 
"@PG_kamiya: Twitter. RT @Riot_Rhapsodya Speaking of Vanquish... In what are you working now Kamiya-San? Or are in a long holidays?"


The problem with kamiyas tweets is that he gets so many stupid questions daily you never know if his answers are taking the piss or honest.

That said, the truest things are said in jest. It's not a good sign either way if he is staing his new project is actually twitter.
 
Nintendo uses the money in their mattress to buy Sega, Bayonetta in the next Smash Bros., Outrun and Shenmue 3D announced for 3DS, Bayonetta 2 and Yakuza of the Mushroom announced as WiiU exclusives, Nagoshi produces the next Metroid.
 

Shaheed79

dabbled in the jelly
Costs can be lowered. Not everything needs to be AAA.

The problem is companies overvalue their work, and think it needs to be AAA, when it shouldn't be.

This is why indies have done well, they fill the void profitably.

What exactly is a AAA game development wise? The cost of developing average to large size 3D games with HD assets is still too expensive. Average being something like Bulletstorm or Vanquish. Large being something the size of Borderland, GTA and Saints Row.

A good majority of the games that failed to turn profits were not "AAA" nor did they try to be. Suggesting that publishers make more indie like games and save their HD budgets for a few "AAA" games is not a solution that I think you, or any other console gamer, would want.

I don't think you have a good idea about which games from this generation fall into the category of "not worth the budget" under those restrictions.
 
D

Deleted member 13876

Unconfirmed Member
None of those four "safe" franchises interests me in the slightest.
 
Sega doesn't own the IP for Vanquish do they? Either way, this can't be good for Platinum Games. :( Atlus/Index should buy the Valkyria Chronicles team.
 

ShadiWulf

Member
So who's gonna buy Sega?

EA?
MS?
Nintendo?

No one is buying SEGA. They will make it through this.. it's just part of a changing market that is bringing SEGA's profits down, but SEGA is good at adapting to changes =)

I'm personally expecting a lot more digital games, which isn't a bad thing.
 

FLEABttn

Banned
Yakuza being profitable in Japan gives me hope for future entries coming west, so long as those localizations continue to be profitable (which Y3 and Y4 seemingly were).

Unless there's an opportunity cost failing here.
 
I wouldn't mind Sega selling certain franchises to Nintendo.

I still think Nintendo bringing Sega in house makes a certain amount of sense.

Beyond obvious fan-service stuff like Sonic , Ulala or Aiai in Mario Kart/Party/Smash, Nintendo doesn't usually tackle auto racing (MK is it's own thing), non-mascot fighters, or HOTD/Ghost Squad type of stuff. There are certain types of games Nintendo hasn't made, historically, and if Sega were to become another Retro Studios or Monster Games they could fill some of that void.

Plus, Sega devs can work on F-Zero, etc.
 

alstein

Member
What exactly is a AAA game development wise? The cost of developing average to large size 3D games with HD assets is still too expensive. Average being something like Bulletstorm or Vanquish. Large being something the size of Borderland, GTA and Saints Row.

A good majority of the games that failed to turn profits were not "AAA" nor did they try to be. Suggesting that publishers make more indie like games and save their HD budgets for a few "AAA" games is not a solution that I think you, or any other console gamer, would want.

I don't think you have a good idea about which games from this generation fall into the category of "not worth the budget" under those restrictions.

It's not what we want, it's what keeps them making stuff period.

A loss on a smaller title hurts, a loss on a AAA title can shut down your studio.
 
Yakuza being profitable in Japan gives me hope for future entries coming west, so long as those localizations continue to be profitable (which Y3 and Y4 seemingly were).

Unless there's an opportunity cost failing here.

Yakuza 3 did well enough that they brought Yakuza 4, which supposedly didn't do that well.
 

scitek

Member
They've made so many right moves in my eyes recently with things like Daytona USA, Sonic Generations, and how they've embraced Steam. They deserve better. :(
 
I still think Nintendo bringing Sega in house makes a certain amount of sense.

Beyond obvious fan-service stuff like Sonic , Ulala or Aiai in Mario Kart/Party/Smash, Nintendo doesn't usually tackle auto racing (MK is it's own thing), non-mascot fighters, or HOTD/Ghost Squad type of stuff. There are certain types of games Nintendo hasn't made, historically, and if Sega were to become another Retro Studios or Monster Games they could fill some of that void.

Plus, Sega devs can work on F-Zero, etc.

Agreed 100%. Nintendo seems to have a better handle on maintaining IP, putting out a consistently high quality game, and marketing their games.

Sega really seems to be inept at almost all aspects of producing games now days.
 

DJIzana

Member
Gah, woke up to seeing this news... what a bad start to a Friday. =/

I just hope they continue with the Yakuza series & didn't cancel the 5th one or anything else. I also hope this doesn't effect the release (or possible release of) PSO2.
 
Yakuza being profitable in Japan gives me hope for future entries coming west, so long as those localizations continue to be profitable (which Y3 and Y4 seemingly were).

Unless there's an opportunity cost failing here.
I'm worried Binary Domain's inevitable flop might sideline Yakuza Studio or at least Nagoshi. Plus it's not like the Yakuza games are really that huge in terms of success, worldwide they put up lower numbers than the Super Monkey Ball games did last gen and they cost orders of magnitude more to make.
 

Ravidrath

Member
Bayonetta 2 is probably too far into development to cancel.

I bet they just had to shift a bunch of the team over to Revengeance, and rather than sacrifice quality Sega just accepted a delay.
 

unomas

Banned
Clearly this is all due to the HD consoles, we need to go back to 8 bit gaming!!! Bull freakin crap, how about if Sega had games that sold well recently? How about if they got their management and house in order? Newsflash the global economy is not doing well, yes making games has gotten more expensive, and it will continue to do so, survival of the fittest. I'm a Genesis and Dreamcast owner so I want to see Sega succeed, but how about making some game that sell? That might help, not crying about going in reverse with technology. I can't even remember the last time I purchased a Sega game and I was a Jet Grind/Panzer owner day 1, but give us some games to get interested in Sega, and maybe market them???
 
Thank god I will still get VF:FS :)

But yea, it seems that Sega doesn't know how to runs things and be lean and mean. Were they doing gangbusters last gen? I think blaming everything on HD development costs is too much. They have to adapt and change to make it work. Nothing is going back in time.
 

twobear

sputum-flecked apoplexy
How is 'well they make niche games' supposed to be an argument? That means that niche games are not financially viable. Why does this make the news any less worrying? Especially as we gear up for another console launch.

And then you have people lamenting the idea that they might make iOS games instead. Deal with it. iOS games are lower budget and thus represent a lower risk, which is exactly what a company needs. And there's a slew of iOS games that prove that they can have just as much heart as any console game, if not moreso.
 
This sucks. I can't put it any other way. Sega has become friendly towards the PC, Sonic is slowly getting back into shape and they've been releasing a lot of highly regarded titles with tons of Japanese flair. Hearing that they are in trouble is sad as hell...

Looks like I'll have to support Sega's good software more than before with my monies. They really deserve more and I want Bayonetta 2 baaaaad.
 

TreIII

Member
Bayonetta 2 is probably too far into development to cancel.

I bet they just had to shift a bunch of the team over to Revengeance, and rather than sacrifice quality Sega just accepted a delay.

This is what I'm personally hoping. Whatever Kamiya is working on, it probably got hit with the "Delay!" hammer just like Anarchy did. Of course, to Kamiya's team's benefit, it was never officially announced in the first place.
 
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