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Sega only making 4 retail IPs, closes 5 publishing offices, focuses on digital

The rumours were true. :(

SEGA REVIEWS THEIR EUROPEAN STRUCTURE

Distribution partners in place across Europe

LONDON – 28th June 2012 – SEGA® Europe today confirmed that as a result of the recent restructure it will be shifting business to focus on developing new and existing digital content as well as driving key IP for packaged goods. SEGA has therefore realigned its business strategy and will be closing their offices in France, Germany, Spain, Australia and Benelux.

Koch Media have been appointed to assist SEGA with distribution across Germany, Switzerland, Austria, France and Spain of packaged goods, Level03 Distribution and 5 Star Games will assist with distribution across Benelux and Australia respectively which will be implemented from the 1st July 2012.

All other territories will continue to be run through the same channels as before, and along with Koch, Level03 and 5 Star, will be managed through the SEGA Europe Headquarters based in London.

“SEGA is entering a new and exciting phase that will position the company as a content led organisation maximising sales with strong and balanced IP such as Sonic the Hedgehog, Total War, Football Manager and the Aliens franchise”, commented Jurgen Post, COO of SEGA Europe. “The company will benefit from a clear focus and realigned strategy for our digital business and packaged goods and we are confident that this will lead to a successful future.”

SEGA will continue the sales, marketing and distribution of London 2012™ - The Official Video Game of the Olympic Games which will be launched on the 28th June in Australia and the 29th June across Europe for PC, the Xbox 360® video game and entertainment system, and the PlayStation®3 computer entertainment system.

Some quotes from GI.biz http://www.gamesindustry.biz/articles/2012-06-28-sega-closing-european-offices

"It's about the territories. UK stays as it is, we'll have some layoffs across the territories of course, but we don't give out any specifics on that," said Post.

"Basically for us it's putting a lot of focus into those studios and into their IPs. So Total War coming out of Creative Assembly, Football Manager coming out of Sports Interactive, so we want to diversify, so we want to have an increased focus on those brands. And we want to become better and more successful with those."

And how does that affect new IP outside of those current brands?

"At the moment for us those are the four IPs we are talking about, they are our AAA IP. At the moment we are looking into options of course, but it's not like we are already developing some other titles in addition to that, no," said Post.

"It's a focus on those four core IP, and in addition to that we'll have digital. And digital still means 50 - 75 releases every year, so that's still a big number."
 
Sep 11, 2011
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It's okay guys! This new phase of development is going to be totally-exciting!

Right guys! Guys?! —Guys?

I rarely pity a corporation for the stuff it's gone through, but SEGA takes all of my pity right now, for free. Former giants like SEGA never deserved to be crushed by this generation of maddening highs and crushing lows. Nor did they deserve Hayao Nakayama and his Saturn-era reign of the supreme bozos.

Here's hoping they can recover.
 

michaelius

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Jan 5, 2012
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Good once they lack man power maybe they will allow someone more competent to take care of their Japan only IPs.

And by more competent I basically mean anyone else...
 
Sep 11, 2011
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Buy Valkyria Duel. It's the TCG Valkyria game you've all been waiting for!
 

matmanx1

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Sad, sad times for a company that produces some of my favorite games. I hope SEGA can survive and eventually even thrive again.
 
Some quotes from GI.biz

"It's about the territories. UK stays as it is, we'll have some layoffs across the territories of course, but we don't give out any specifics on that," said Post.

"Basically for us it's putting a lot of focus into those studios and into their IPs. So Total War coming out of Creative Assembly, Football Manager coming out of Sports Interactive, so we want to diversify, so we want to have an increased focus on those brands. And we want to become better and more successful with those."

And how does that affect new IP outside of those current brands?

"At the moment for us those are the four IPs we are talking about, they are our AAA IP. At the moment we are looking into options of course, but it's not like we are already developing some other titles in addition to that, no," said Post.

"It's a focus on those four core IP, and in addition to that we'll have digital. And digital still means 50 - 75 releases every year, so that's still a big number."
 
Sep 11, 2011
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My hope for these digital releases is that they include more Vintage Collections and B-developer titles in general. SEGA's recent digital focus has been working out for them very-well so far, and I think this is both the best direction and the necessary direction for their overall business plan to take.

SoJ still has arcades, so they'll live on like fucking cockroaches.
 

Ushojax

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Nov 1, 2009
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SEGA UK is just down the road from me, Capcom UK is only 10 minutes away as well. It wouldn't be the same if I didn't see Sonic on the side of their building when I go past.
 
Sep 11, 2011
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You only have to look at Sega to see why Nintendo will never willingly go 3rd party - it is a death sentence.
Third-party was never the issue. SEGA had simply lost rapport within the Western game community. That was its death-knell, because SEGA only got to such a high position with the Mega Drive's sales in the West, not in the East.

Nintendo's still selling and repairing old Super Famicoms, to this day. Japan loves Nintendo and couldn't give any less of a shit about SEGA.
 

Azure Phoenix

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Great, I guess that means no more European releases for the Yakuza or Phantasy Star games. I wonder what will happen with Monkey Ball Banana Splitz as well, that pretty much dropped off the release radar along with Anarchy Reigns.
 

Pie and Beans

Look for me on the local news, I'll be the guy arrested for trying to burn down a Nintendo exec's house.
Apr 23, 2010
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Some correct moves being made, but also along stubborn "THESE 4 FRANCHISES ONLY!!!" statements that dont paint yourselves as a good company to believe in.

When it comes time for Yakuza 5, don't linger in a company like Atlus or XSEED's way if you have no intention of bringing it over. Also, digital only releases instead of retail is more than acceptable for niche title stuff. Aim for that £20 game market from the start, you might be surprised at the success away from £40 retail bombas.
 

Go_Ly_Dow

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Nov 9, 2010
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yakuza 3 and 4 can both be found for insane prices even new, so i just hope sales keep ticking along and it eventually makes a notable profit for sega....

as long as yakuza 5 is localized in na then we can always import, so there's that hope.
 

spats

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I'm gonna go cry if we don't get a new Yakuza here in some form. I wouldn't get that upset even if they didn't bring it to Europe, as long as we got some sort of localization. I'd import it from outer space if I had to. :,(
 

Danny Dudekisser

I paid good money for this Dynex!
Oct 13, 2008
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Third-party was never the issue. SEGA had simply lost rapport within the Western game community. That was its death-knell, because SEGA only got to such a high position with the Mega Drive's sales in the West, not in the East.

Nintendo's still selling and repairing old Super Famicoms, to this day. Japan loves Nintendo and couldn't give any less of a shit about SEGA.

Naaaah, Japan was pretty big on the Saturn, and kinda into the Dreamcast. Plus, there's still Club Sega, where salarymen go to avoid spending time with their annoying wives after work.
 
Sep 11, 2011
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Naaaah, Japan was pretty big on the Saturn, and kinda into the Dreamcast. Plus, there's still Club Sega, where salarymen go to avoid spending time with their annoying wives after work.
Saturn was the exception, not the rule. They weren't very big on the Dreamcast either—only around 2 million units, similar to how the MD faired.

Arcades have always been their domain, so yeah there's that. But I was referring mainly to the console business anyway.
 

Delusibeta

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delusibeta.tumblr.com
that's not a very exciting portafolio

Especially if you're not a PC gamer. That said, it's amusing how two of Sega's "big four IPs" are PC exclusives developed in the UK (which also explains why they're keeping their UK offices open).

And, come to think of it, they haven't really done much with the Aliens franchise: just the Rebellion game so far, so it seems somewhat silly to focus on that.
 

Azure Phoenix

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And, come to think of it, they haven't really done much with the Aliens franchise: just the Rebellion game so far, so it seems somewhat silly to focus on that.
They also did Aliens Infestation on the DS (the 2D one by Wayforward) and Aliens vs Predator on the 360/PS3, I seriously doubt either set the charts alight.
 
Especially if you're not a PC gamer. That said, it's amusing how two of Sega's "big four IPs" are PC exclusives developed in the UK (which also explains why they're keeping their UK offices open).

And, come to think of it, they haven't really done much with the Aliens franchise: just the Rebellion game so far, so it seems somewhat silly to focus on that.
Aliens Infestation for the DS also had the SEGA label, as well as the forthcoming Colonial Marines game.
 

Pie and Beans

Look for me on the local news, I'll be the guy arrested for trying to burn down a Nintendo exec's house.
Apr 23, 2010
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Aliens franchise stuff is most likely gonna bomb especially relative to how long most of this stuff has been in development, so they're in for a big surprise with that 'pillar'!

So this probably also mean no shenmue hd xla/psn edition..
Finally getting round to monetising their Dreamcast back catalogue is one of the few things theyre actually doing right. The games are already made, and just need tinkering with to bring over on all platforms for dat money, so I dont see this interfering with that initiative especially when they keep stressing commitment to a wide digital focus.
 

Father_Brain

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When it comes time for Yakuza 5, don't linger in a company like Atlus or XSEED's way if you have no intention of bringing it over.

Sega was allowing external publishers to handle localizations until midway through this past generation, which apparently killed an already-signed deal for a Western release of 7th Dragon. One can only hope they'll reverse themselves again.
 

KimonoNoNo

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I also despair for the fate of a English localization of Yakusa 5.

Maybe Sony will help them out with the publishing duties.
 

FunnyBunny

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You only have to look at Sega to see why Nintendo will never willingly go 3rd party - it is a death sentence.

Only if Nintendo released terrible games starring its flagship character(s) for years.

Sega struggled because it was mismanaged and its teams made several atrocious games. A good part of its library between 2002 and 2009 is a vast wasteland of crap.
 

megashock5

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My hope for these digital releases is that they include more Vintage Collections and B-developer titles in general. SEGA's recent digital focus has been working out for them very-well so far, and I think this is both the best direction and the necessary direction for their overall business plan to take.

SoJ still has arcades, so they'll live on like fucking cockroaches.

You would think since digital release can typically be smaller than retail disc games, we might FINALLY get some of Sega's classic arcade-only racers like Super GT at home. The Daytona port was beautiful, but I feel like it's the only one we'll get. :(
 
Sep 11, 2011
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Trust me: Yousuke Okunari, the man in charge of the classic ports right now, is the man for the job. He's going to save SEGA with these Vintage Collections and the AM Port Team. People are gradually going to warm up to these ports, and I know GAF will eat them up.
 
Feb 7, 2008
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Trust me: Yousuke Okunari, the man in charge of the classic ports right now, is the man for the job. He's going to save SEGA with these Vintage Collections and the AM Port Team. People are gradually going to warm up to these ports, and I know GAF will eat them up.

Hiring M2 to re-do Streets of Rage, Golden Axe and the Monster World games was a great move, too. With M2, the AM port team and the guys who're putting together Jet Set Radio HD, I think Sega's digital future is a bright one for past games.

My worry is for new IP and larger projects. We'll never see another game on the scale of Binary Domain from Sega, and that's a shame.
 

KimonoNoNo

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Aug 30, 2011
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Trust me: Yousuke Okunari, the man in charge of the classic ports right now, is the man for the job. He's going to save SEGA with these Vintage Collections and the AM Port Team. People are gradually going to warm up to these ports, and I know GAF will eat them up.
Well it's working for me so far, beings as I bought V5:FS and probably will get Jet Set.

I wouldn't mind if Sega downsizes and becomes a more focused company, but I've no confidence in the old men on the board back in Japan.
 
Sep 11, 2011
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Honestly: SEGA's arcade output alone is worth a company downsize and re-focusing. I'd rather have them maintain the longevity of their arcade legacy than focus on hit-or-miss console endeavors in the future, and they've done a pretty good job overall.
 
Jun 16, 2004
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Hiring M2 to re-do Streets of Rage, Golden Axe and the Monster World games was a great move, too. With M2, the AM port team and the guys who're putting together Jet Set Radio HD, I think Sega's digital future is a bright one for past games.

My worry is for new IP and larger projects. We'll never see another game on the scale of Binary Domain from Sega, and that's a shame.

My concern is what happens when the legacy titles run out. It's one thing for JSR HD to do well for an enhanced port, but would that be enough to justify a new JSR.
 

BD1

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At some point, you have to start wonderng what the leadership of Sega Sammy is going to do. Pachinko is the only business unit that's really profitable for them. I figure they'll make a deal to sell off a package of Sega IP, scrap the Consumer & Amusement Facility division and scale back the Amusement Machines.