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

BKK

Member
Is Bayonetta really a "title targeted toward the U.S. and European markets"?

If localising Yakuza was unprofitable they would have stopped localising them a long time ago. The announcement doesn't sound like they're cancelling localisation projects, just certain games targeted specifically at the western market. Maybe western sales of Dead Souls will put them off releasing spin offs, but I'd still expect them to release mainline titles.

Also, ¥7b isn't that much.
 
Why haven't you been utilizing Sagata Shiro this whole time Sega?

*slap*

Seriously. If they started a new campaign starring Segata, and aimed worldwide... It would totally have to be in-line with the classic Saturn stuff. Viral videos of Segata on his day off and such, these things could dust off the brand for people, mark a return to classic Sega ideals of gaming. Back in reality, it'll be a bunch of retro emulations and AAA sequels.
 

Beth Cyra

Member
Is Bayonetta really a "title targeted toward the U.S. and European markets"?

If localising Yakuza was unprofitable they would have stopped localising them a long time ago. The announcement doesn't sound like they're cancelling localisation projects, just certain games targetted specifically at the western market. Maybe western sales of Dead Souls will put them off releasing spin offs, but I'd still expect them to release mainline titles.

Also, ¥7b isn't that much.

Yes. The majority of Bayo sells came from the west. Beyond that the Action genre as a whole performs better in the west then it does in Japan wether it's DMC, Ninja Gaiden, Bayo or God of War.
 

Zen

Banned
I hope not, I mean they already set up a completely different team/studio to handle the Yakuza games, so the main Yakuza team couldn't really go back. Though their next game needs to be a hit. I seriously hope that Binary Domain does 200k + range in the upcoming NPD...

It's a real shame taht it basically bombed in Japan (well 100k isn't bad for Japan, but not in line with the Yakuza titles, they should have thrown Kasuma in as a side character in the plot).
 

Beth Cyra

Member
Fuck. There goes any hope of a new Valkyria Chronicles! :(

VC has performed decently in Japan on PSP hasn't it?

If so, then I could see the series continuing on 3DS/Vita if they feel either platform could continue decent sales.

HD game or english locs? No chance in hell I would imagine.
 

BKK

Member
Yes. The majority of Bayo sells came from the west. Beyond that the Action genre as a whole performs better in the west then it does in Japan wether it's DMC, Ninja Gaiden, Bayo or God of War.

Sure, but it's not exclusively targeted towards the west in the same way as the titles mentioned in the announcement. The first Bayonetta still sold 300k in Japan, which is a decent percentage towards making the game financially viable.
 

Maxrunner

Member
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)

THat's why Nintendo would be the right buyer :p
 

Nirolak

Mrgrgr
Sure, but it's not exclusively targeted towards the west in the same way as the titles mentioned in the announcement. The first Bayonetta still sold 300k in Japan, which is a decent percentage towards making the game financially viable.

To give a rough range of Platinum's budgets, they were happy with 1.1 million shipped for Bayonetta, unhappy with 750K for Vanquish, and wanted Anarchy Reigns somewhere in between.

That's still a pretty hefty number of sales in the West for something that isn't a guaranteed smash hit.

VC has performed decently in Japan on PSP hasn't it?

If so, then I could see the series continuing on 3DS/Vita if they feel either platform could continue decent sales.

HD game or english locs? No chance in hell I would imagine.
they better not have cancelled the real Valkyria sequel they were totally secretly working on :(
The Valkyria team is currently making a Shining game for PSP.

Here's the trailer for it: http://www.youtube.com/watch?v=QxXeyzeUfL4
 

GhaleonQ

Member
Sega got cool again for a bit there, didn't they?

...Anomaly, I guess. Let's just raze the whole industry and stick to browser games. This is absurd.
 

Superfrog

Member
To give a rough range of Platinum's budgets, they were happy with 1.1 million shipped for Bayonetta, unhappy with 750K for Vanquish, and wanted Anarchy Reigns somewhere in between.

That's still a pretty hefty number of sales in the West for something that isn't a guaranteed smash hit.
I can't imagine Anarchy Reigns even selling close to 500K worldwide. It's a niche title in the vein of something like God Hand. That's mismanagement par excellence on the part of Sega. Also, both Vanquish and Binary Domain were terribly marketed, including god-awful cover art for BD. Add in the cheesy b-movie quality of both presentation and storylines and you have a product that doesn't even have any chance of becoming a huge success. It's just no surprise that none of these titles were and will be successful. :(
 

AppleBlade

Member
and new consoles are already coming. dont wanna how development costs will look like then.
Why does it have to be? Can't they just make games similar to current gen games but have them run at 1080p at 60 FPS with higher res textures (that they are probably making right now for the PC versions). If those games don't sell because they don't push Image Quality boundaries (at the sake of performance) then is it their fault or gamers?
 

TheTowel

Member
Sega got cool again for a bit there, didn't they?

...Anomaly, I guess. Let's just raze the whole industry and stick to browser games. This is absurd.

Truth. Right when they start impressing us, they lose money like the old days.

Still hoping for a Skies/Shenmue HD DD.
 
If it is really true that games early this generation cost less than games now, then I think the problem might be that games are becoming too big. They're also taking too long to develop.

Developers like making new games bigger, to compete and stand out. But I think instead of making them bigger and more expensive (longer cutscenes, more assets, longer gameplay) they should make them different. Look at Majora's Mask. Same assets, completely different game, made in only one year. Plus, it's OK to do more of the same sometimes. Doom 1 -> 2, Mario Galaxy 1 -> 2, etc.

Development is also taking too long. It's OK to cut stuff to meet deadlines, if the game's good enough, like Wind Waker. (As a bonus, they can release the extras as DLC.) It sort of pains me to say that, but it's not like Wind Waler wasn't a classic, even with the cut dungeons.

Thinking about titles like the original MGS and MGS 2... I don't know what their budgets were, but I wouldn't be surprised if it was way less than MGS 4's. If MGS 1 were made today, I'm fairly certain it wouldn't cost even 1/2 of what MGS 4 did, and it would still be a great game.
 
Why does it have to be? Can't they just make games similar to current gen games but have them run at 1080p at 60 FPS with higher res textures (that they are probably making right now for the PC versions). If those games don't sell because they don't push Image Quality boundaries (at the sake of performance) then is it their fault or gamers?

I think at some point the tech will surpass what a team can realistically make on it while still expecting a profit return at the current $50-ish MSRP. This situation will probably work itself out naturally. Devs will be killing themselves if they keep trying to blow our minds in the most expensive ways possible.

Does this mean the end of Virtua Fighter?

If this is the case, I'm quitting fighters once FS comes out.

Shit! Fuck!

Didn't think of VF...
 

Epcott

Member
It's the "Used Games" market's fault. Right?

Anywho, just release Bayonetta 2 and Phantasy Star Online 2 for Vita stateside and, that's all that I ask for, Sega.
 
MOAR HD remakes dammit. That'll give you more money SEGA.

Out of curiosity, does anyone know off hand how well Daytona USA sold? That's the kind of thing I would gladly keep giving Sega money for. We still haven't seen home versions of some of their arcade racers, I feel like there's a market there.


Time to roll out the Saturn/Dreamcast collections, Sega. Will buy.

This too.

And, all joking aside, I wonder if Nintendo actually should buy them at this point. Could be a nice compliment and fill in some areas where they're lacking.
 

patapuf

Member
I think at some point the tech will surpass what a team can realistically make on it while still expecting a profit return at the current $50-ish MSRP. This situation will probably work itself out naturally. Devs will be killing themselves if they keep trying to blow our minds in the most expensive ways possible.

I think the problem is more that there are a few big publisher who can afford to throw really big budgets at games and the rest of the field has to settle for scraps because they can't compete on a technical level.
 

Bruno MB

Member
Does SEGA has any console IP that sells well in the West outside of Sonic titles?

And even Sonic games are underperforming lately with the exception of Mario & Sonic at the Olympic Games titles.

Yakuza 4, Yakuza: Dead Souls, Vanquish, Resonance of Fate, Captain America: Super Soldier, Virtua Tennis 4, Thor: God of Thunder or Binary Domain have recently bombed.
 
Developers like making new games bigger, to compete and stand out. But I think instead of making them bigger and more expensive (longer cutscenes, more assets, longer gameplay) they should make them different. Look at Majora's Mask. Same assets, completely different game, made in only one year.

At this point I can only imagine someone at Obsidian laughing hysterically before breaking into a crying jag.

Sega spent the last few years releasing some of their best titles in ages, particularly Platinum Games' genre defining stuff. Unfortunately the smart money was on spunking out even more cynical garbage Sonic titles that the market actually wanted instead of superb games that are obviously Japanese, and hence doomed from day one in the modern climate (we can just pretend they were all really bad for argument's sake). Still, I guess they can just release Total War with different graphics again for an easy success.
 
It's sad how poorly the industry has transitioned to the "HD Generation" of gaming.

actually, it's more about the world economy tanking, something that very few industries seem to be transitioning to very well...

&, yes, losing the yakuza series would be a killing blow for me...
 
Time for plan B, Sega: HD remakes of Sonic 1-3&K, and a real Sonic 4.

It feel like Modern Sonic fans have taken over though, and their Sonic games have been selling.

I think the almost complete lack of marketing since the end of the 90's has most buyers stuck on iconic/proven IP's, and I figure the Sonic games turning profit has nothing to do with the recent upturn of quality.

I will continue to hope for more realistic projects and increased marketing, I hope we aren't as doomed as it seems we are.
 
Does SEGA has any console IP that sells well in the West outside of Sonic titles?

And even Sonic games are underperforming lately with the exception of Mario & Sonic at the Olympic Games titles.

Yakuza 4, Yakuza: Dead Souls, Vanquish, Resonance of Fate, Captain America: Super Soldier, Virtua Tennis 4, Thor: God of Thunder or Binary Domain have recently bombed.

I don't know how Sega keep releasing Yakuza games tbh, have any of them turned a profit? That series isn't exactly known for it's amazing sales.

I'm surprised they haven't done things like:

- Sonic Generations DLC (seriously, WTF Sega...)
- Sonic Colours on HD consoles
- Comix Zone HD/hand drawn
- Phantasy Star I & II remakes on XBLA/PSN/etc
- Phantasy Star V
- Shining Force III on... anything
- Panzer Dragoon series remakes
- Continuation of Skies of Arcadia
- New Burning Rangers
- New 2D/HD Fantasy Zone
- A proper NiGHTS sequel

etc

etc

etc
 

vulva

Member
In recent times people have been praising them for finally getting things right. Guess that proves that what people here want is far from what most people care about.:(
 

Durante

Member
VC has performed decently in Japan on PSP hasn't it?

If so, then I could see the series continuing on 3DS/Vita if they feel either platform could continue decent sales.

HD game or english locs? No chance in hell I would imagine.
Just for the record, VC performed worse on PSP than on PS3, even in Japan.
 

IrishNinja

Member
Yakuza 4, Yakuza: Dead Souls, Vanquish, Resonance of Fate, Captain America: Super Soldier, Virtua Tennis 4, Thor: God of Thunder or Binary Domain have recently bombed.

bombed by what metric, though? i don't know that we can necessarily say this for all if we don't know what their budget & expectations were.
i.e., on no level do they seem to think Yakuza is gonna be a huge seller, but it apparently does well enough to continue localizing, even with a spin-off this time. it's possible they have more realistic #'s in mind like say, Atlus.

So you're saying we might never get Shenmue 3?

don't you dare stop believing, Trekker
 
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