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[Corto]

Sega has been an underrated publisher this generation.


That they have to "retreat" to their safest franchises is a real pity. :/

For sure. I can't seem to remember any other third party publisher with a roster of new IPs of the same quality of Sega this gen.

 

[JaxJag]

It pains me to say it, but when you only release bad to mediocre titles with hardly any appeal.

Then, well, they derseve it.

 

[Sadist]

Damn :/

 

[Endo Punk]

Given the eye watering costs of developing console titles these days I'm not sure just how much 'help' even a millionaire could be to them..... unless of course you're going to pick them up and drive them places in your fancy car.

Spoiler

....., j/k mang.

For all the fancy graphics and tech I would trade it all away for stability for developers. So many lives claimed this gen and I fear it will continue with the next.

 

[Pyccko]

Oh Sega ? Someone cares about them in 2012 ?

Sorry but I don't - I was a huge fan of them up to 2010 but considering they effectively killed Valkyria Chronicles, canned Aliens RPG and dropped Yakuza for Binary Domain they only game series they have I care about if Total War.

wut

 

[Nirolak]

No one is going to buy Sega.

Sammy is really profitable also, so just cutting off money from the games division leaves them in great shape, without any need of a buyout.

 

[Data West]

canned Aliens RPG and dropped Yakuza for Binary Domain

wat
http://www.sega.com/games/aliens-infestation
http://www.1up.com/news/yakuza-enormous

 

[Pachael]

Sammy must be sick and tired of the Consumer business not putting anything to the bottom line compared to the Arcade divisions. Oh well. :| (Calling Nagoshi)

 

[trinest]

Sega has been an underrated publisher this generation.


That they have to "retreat" to their safest franchises is a real pity. :/

Didn't they do that awhile back though?

 

[Beth Cyra]

Wasn't there a Sonic Kinect game that sucked really badly ? Even without any interference from MS ?

Sonic Riders port.

I wonder if at one point we will see Sega/Sammy just be Sammy who releases a few sonic games a year.

 

[radioheadrule83]

Anyone have a breakdown of where this loss came from? Its mental. I imagine its not helped by the Yen, but I'm wondering what games didn't perform etc.

I wouldn't have thought that with some of the good / popular games they've released in the last couple of years, and things like Mario & Sonic that they could manage something like this...

 

[Carbonox]

Didn't Bayonetta sell over a million copies? I'd consider that somewhat of a success. It got a huge marketing blitz and was a pretty unique game. For a title of its genre, craziness and for being a new IP, it will always be a success in my heart. <3

P* should ditch SEGA. Then again, do SEGA own the Bayonetta IP or is that P*'s to take where ever they go?

 

[Busty]

Yep: http://www.ubisoftgroup.com/en-US/press/detail.aspx?cid=tcm:99-40629-16&ctid=tcm:95-27313-32.

Yikes. I had no idea. While it makes sense in terms of developing the 'IP' it's still an eye opening stat.

 

[Truth101]

Didn't Bayonetta sell over a million copies? I'd consider that somewhat of a success. It got a huge marketing blitz and was a pretty unique game. For a title of its genre, craziness and for being a new IP, it will always be a success in my heart. <3

P* should ditch SEGA. Then again, do SEGA own the Bayonetta IP or is that P*'s to take where ever they go?

I wonder if Bayonetta made much of a profit, if any...

Sega owns the IP.

 

[Let me in]

Wasn't there a Sonic Kinect game that sucked really badly ? Even without any interference from MS ?

Yes, I did forget about that. I guess they need no help with bad ideas. Yakuza Kinect.

Really they're only recording a loss because of the restructuring and making their EU and US operations smaller, but what's the smoking gun here? They're disappointed with results so much so that they're cancelling all kinds of games and reducing output. I actually thought they were plugging along pretty well. Great output lately.

 

[Beth Cyra]

Didn't Bayonetta sell over a million copies? I'd consider that somewhat of a success. It got a huge marketing blitz and was a pretty unique game. For a title of its genre, craziness and for being a new IP, it will always be a success in my heart. <3

P* should ditch SEGA. Then again, do SEGA own the Bayonetta IP or is that P*'s to take where ever they go?

Sega own the Ip.

Also Bayonetta did alright in a time when AAA level games need 1-2 million sold just to break even.

Yes, I did forget about that. I guess they need no help with bad ideas. Yakuza Kinect.

Really they're only recording a loss because of the restructuring and making their EU and US operations smaller, but what's the smoking gun here? They're disappointed with results so much so that they're cancelling all kinds of games and reducing output. I actually thought they were plugging along pretty well. Great output lately.

Yakuza exclusive to 360 would be to stupid for even Sega to actually try.

 

[Haunted]

Sammy is really profitable also, so just cutting off money from the games division leaves them in great shape, without any need of a buyout.

Yeah, Sammy would have to cast off the Sega portion for any talks of buyouts to become even remotely realistic. Which, depending on the nature of their fusion I know nothing about might be unrealistic/impossible in the first place.

 

[Corto]

It pains me to say it, but when you only release bad to mediocre titles with hardly any appeal.

Then, well, they derseve it.

You have the appeal right. Their sales speak for themselves. The quality is there though. There isn't always a direct correlation between the two.

 

[radioheadrule83]

Yeah just re-read this bit:

we are planning to record 7.1 billion yen in extraordinary loss as
expenses in accordance with the structural reform, which the cost is believed to be 4.9 billion yen

so 2.1bln is something other than the restructuring.

 

[Carbonox]

SEGA owns the IP? Damn. It's OK P*, just go to a different publisher and make Bayonetti.

 

[RuGalz]

How about streamline development process to save future costs. JP developers tend to have a long way to go in that aspect.

 

[Erethian]

Also stop blaming 'the HD generation' peoples. Companies reach this point because of mis-management. Sega has always had a talented arcade division and they used to make money back on those costly developments beyond the shrinking arcade market by bringing console ports to the west. Not so in the last decade with quality stuff like Border Break forever languishing in japanese arcades alongside easily monetised stuff like Shining Force Cross and more.

There's a simple problem, which is development costs increasing faster than revenues. Mis-management or no, that's a difficult equation to get around.

I wouldn't categorise it as an "HD generation" problem though, so much as a "fragmented generation" problem. The PS2 was so easy, only had to worry about one super successful platform that could cover almost all markets. Now you've got different markets split between different platforms, and that just makes it that much harder to make a game that sells to a broad demographic base.

 

[Endo Punk]

Sega own the Ip.

Also Bayonetta did alright in a time when AAA level games need 1-2 million sold just to break even.

Japanese games are not made with the budget of most Western titles. At those sales figures Im sure Bayo was a profitable venture for P* and SEGA, same with Vanquish actually which was close to a million.

 

[Maxrunner]

Terrible news. I frequently rip off Sega for their neglect of the West vis localizations and content, but they still produce fantastic games. At least their core franchises and a few others (Phantasy Star etc) are safe.



How to completely invalidate your argument.

Really?? I just dont like their business practices at all....and im not talking just about their games division either...

 

[bigtroyjon]

Maybe in the OP you could put that 7.1 billion Yen is 87 million dollars. Yeah, it's a decent sized loss but I think people might be overestimating how much it really is based on some of the posts so far.

 

[IrishNinja]

For Sega? Most of it is a $4.9 billion yen writedown of projected revenue/profits from their canceled games.

It's worth noting that this is only a $96 million loss total and ~$60 million is from that writedown mentioned at the bottom.

damn. well, it's mildly reassuring that it wasn't so much big bombas they released, though i don't think shareholders will see it that way.

I wonder if the fans can do anything at all in this case. We've got to do something...=/

i know the big thing right now is to yell "Kickstarter!" but stumps kinda nailed it a while back, they're not for companies that have the means but are simply risk-averse.
anytime i talk to guys like RubyEclipse and ask what can be done as fans, most of the answer is "preorder".

Listen brother, I'm hurting just as much as you. OH GOD D:

i know man. i know. we're gonna get through this!

No one is going to buy Sega.

thankfully no, but i don't at all think they're gonna be on the market, either.

I know it's hard to swallow, but you have to let go

BLUE SKIES FOREVER~

 

[Grymm]

Maybe in the OP you could put that 7.1 billion Yen is 87 million dollars. Yeah, it's a decent sized loss but I think people might be overestimating how much it really is based on some of the posts so far.

Yeah I was just going to post

7.1 billion Japanese yen = 86.6555 million U.S. dollars


2.1 billion Japanese yen = 25.6305 million U.S. dollars

It's probably not nearly as bad as it sounds.

 

[PeakPointMatrix]

 

[ThoughtsOfSpeaking]

Even more reason why I don't see myself gaming with the next generations hardware.

Sega have on the surface, been responsible for some of the best content this gen since the dream cast era.


But they can't make a damn lick of money doing it.

It's funny cus I was playing Bayonetta last night how much of that game could of been sold as DLC and nobody would of batted an eyelid. That game really does have ps2-era levels of unlockables and extra content.

I really feel sorry for platinum. They deserve better than this.

 

[Beth Cyra]

Maybe in the OP you could put that 7.1 billion Yen is 87 million dollars. Yeah, it's a decent sized loss but I think people might be overestimating how much it really is based on some of the posts so far.

It's not even the money. The reason for the negative posts and reactions are because Sega are restructuring and canceling Software in the pipe to focus on a few strong brands.

 

[Palette Swap]

I hope Bayonetta 2 still exists in some way...could it be that now it's being shifted to Vita / 3DS, in order to reduce drastically development costs?

Yeah, or a Facebook game.

Damn, we're losing the sequel to the game of the gen.

 

[Seraphis Cain]

i know the big thing right now is to yell "Kickstarter!" but stumps kinda nailed it a while back, they're not for companies that have the means but are simply risk-averse.
anytime i talk to guys like RubyEclipse and ask what can be done as fans, most of the answer is "preorder".

Yeah, I wasn't really talking about Kickstarter. I know that's not an option here. Just...something to show that there's still an audience here for Yakuza. It sounds like Y5 is going to be the biggest one yet, and I'll be absolutely gutted if we don't get it over here. =/

I almost feel like the only reason we got Dead Souls is so it could bomb and Sega could use that as evidence that Yakuza doesn't sell over here.

 

[Saty]

I guess the Creative Assembly Aliens game is safe. So is the London Olympic game.

 

[Nirolak]

Japanese games are not made with the budget of most Western titles. At those sales figures Im sure Bayo was a profitable venture for P* and SEGA, same with Vanquish actually which was close to a million.

Sega says Vanquish was disappointing, and following this, they only signed a one game contract with Platinum.

They also have (had?) ludicrous expectations for Anarchy and Binary Domain.

And while its already been made clear in the past that Madworld failed to live up to expectations, Bayonetta was a big ticket for developer and publisher, having become a million-seller. Vanquish? Not so much: Hayes told us that it had sold as much as three quarters of a million worldwide since its release last October.

This, he says, is due to struggling whilst going against big shooter IPs last year like Call of Duty and Medal of Honor.

Binary Domain from the Yakuza team.

And Anarchy Reigns from Platinum Games.

“We released it at a time when a lot of the existing core shooter IP came out on the marketplace,” he said. “I think that was a big learning for us with hindsight, no big surprise. And also, it didn’t have as much point of difference as, say, Bayonetta. So that’s a big learning of how we deal with Binary Domain.

“We’re trying to release that in a window where as a new iP, it’s got a chance to be able to be seen and to be shouted above all a lot of the noise of what the other shooters are doing.

“So even though Vanquish was highly-regarded, I think for a market conditions point of view, it really struggled going up against Call of Duty, Battlefield and everything else that was out there.”

...

Which brings us to Anarchy Reigns, the next tile from Platinum. While its previous games was under a previous publishing deal under Sega, Anarchy Reigns, says Hayes, is a “standalone deal.” Its releasing the game in January next year, which is normally a relatively quiet period, which may have been part of the reason why Bayonetta did well when it released 18 months ago.

“I think we’ve got reasonable hopes on Anarchy Reigns. We’re going for this point of difference of a multiplayer brawler with the Platinum Games seal of quality. I think Anarchy Reigns is going to be a solid game that works very well. We’re not expecting Anarchy Reigns to break out and sell 2 million units, that’s not our expectations at all.

“But I’d like to think Anarchy Reigns is going to sort of notch up the numbers sort of in between Vanquish and Bayonetta. And if that’s the case, that will be the success we want it to be.”

...

But one other title Sega has planned for the relatively quiet Q1 period is Binary Domain from Yakuza creator Toshihiro Nagoshi. Sega’s aiming big for this one, with it being aimed to be in “the Bayonetta A++ position in terms of potential” breakout chances

Source: http://www.vg247.com/2011/08/15/sonic-boom-segas-hayes-on-the-future-and-more/

 

[IrishNinja]

damn.
so double-dipping when Binary goes to PC.

 

[Dalthien]

Maybe in the OP you could put that 7.1 billion Yen is 87 million dollars. Yeah, it's a decent sized loss but I think people might be overestimating how much it really is based on some of the posts so far.

It has more to do with the fact that Sammy finally seems to be waking up and realizing that Sega has added nothing of value to the company, and in fact has been an albatross around its financial neck more often than not.

This seems to be Sammy starting to pull in the reins on what Sega can do going forward.

 

[michaelius]

wat
http://www.sega.com/games/aliens-infestation
http://www.1up.com/news/yakuza-enormous

Why do you link me to some DS game noone cares about when I'm speaking about real Aliens RPG that was developed by Obsidian for HD platforms ?

And while it's good that they are developing another Yakuza - tons of time were lost thanks to Binary Domain.

 

[Hamplin]

One day, Sega will be a company that only sells videogame-related merchandise.

 

[Beth Cyra]

One day, Sega will be a company that only sells videogame-related merchandise.

One day there will only be a company called Sammy who liscenes out it's few gaming Ip's to other developers and publishers.

 

[bigtroyjon]

It's not even the money. The reason for the negative posts and reactions are because Sega are restructuring and canceling Software in the pipe to focus on a few strong brands.

I get that but people are talking about them getting bought out like they are in some kind of trouble. Losing 80 million when you are worth 5 billion isn't putting them in any kind of peril.

 

[jump_button]

No new Jet Set Radio or Shenmue then? i bet they keep making shit iOS game but

 

[Beth Cyra]

I get that but people are talking about them getting bought out like they are in some kind of trouble. Losing 80 million when you are worth 5 billion isn't putting them in any kind of peril.

I think that more comes from people knowing that it is very much Sammy that are keeping things up and Sega pulling the former down. That and the buyout stuff isn't serious, or at least I don't think people are meaning for it to be.

 

[BosSin]

One day there will only be a company called Sammy who liscenes out it's few gaming Ip's to other developers and publishers.

 

[IrishNinja]

No new Jet Set Radio or Shenmue then?

im not ruling out the XBLA rumors, personally! ports like that go to every system & PC, they gotta be easy money i figure. Monster World collection hopefully still makes it over somehow...

 

[deim0s]

No new Jet Set Radio or Shenmue then?

and no Valkyria 3, Binary Domain 2/Yakuza 5/Bayonetta 2 probably. :/

 

[Data West]

Why do you link me to some DS game noone cares about when I'm speaking about real Aliens RPG that was developed by Obsidian for HD platforms ?

And while it's good that they are developing another Yakuza - tons of time were lost thanks to Binary Domain.

Oh, you mean the one that would've been unplayable on launch?
Oh? Tell me more about the inner workings since you obviously work there.

 

[DukeTogo1300]

Why haven't you been utilizing Sagata Shiro this entire time Sega?

*slap*

 

[Cygnus X-1]

Holy shit. I wasn't expecting this.

 

[Laughing Banana]

It's incredible, both literally and in a sad way, that this is a company that once sat as the main competitor of Nintendo.

To see how Nintendo can soar so high while Sega is like this... it's rather sad (especially since I was always more of a Megadrive kid than SNES)

 

[michaelius]

Oh, you mean the one that would've been unplayable on launch?
Oh? Tell me more about the inner workings since you obviously work there.

What inner workings ?
It's a common knowledge Yakuza team made Binnary Domain