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Sega to cut 300 jobs (heavily arcade/pub staff), refocusing on digital/mobile/PC [Up]
- Thread starter Nibel
- Start date
Sega has some pretty damn great mobile games and PC games. Their Sonic titles are actually some of the best platformers on mobile and control surprisingly well. Super Monkey Ball and Chu Chu Rocket mobile titles were fantastic fits for mobile. As was Crazy Taxi and Jet Set Radio surprisingly. You can get some really really great Sega titles that control very well on iOS/Android. Titles in the classic Sega style.
So this isn't true at all. Mobile is capable of great Sega titles. As is PC of course.
CertifiedFP
Member
And get the rest of the VC series to join VC1 on PC, let's not forget that.
You don't get it. I don't care if SNK or Sega or whoever you want makes money and shows income in the end of the year. I'm not an investor, i play games, and i only care about games. Right now they aren't making new games, new titles, they don't experiment and they don't innovate. I talked about irrelevance, not going under.
Sega might have yearly income, but who cares when they have buried all their series for years now.
SteveWinwood
Member
theyve already been doing that for years though
you know if they dont have an income they wont be making any games at all right
what a strange world you live in
giancarlo123x
Banned
Acquiescence
Member
Well going by that logic, Heavy Rain, a game that sold over 3 million copies and made Sony more than 100 million, has segments where you throw a frisbee with your kid in the park and cook scrambled eggs for your client. Overlooking the fact that you don't have to feed the cat and there's about one scene involving the love interest in a park that doesn't really last all that long, the game can easily be marketed through its kung fu brawling and detailed open world. Yeah, it wouldn't be a surefire success, and being a remaster it's not going to sell as much as something like Heavy Rain (although it'd be an awful lot cheaper) but I think it could do potentially well, and as you say, it'd serve as a good litmus test to determine if Shenmue 3 has commercial viability or not.
HeavyMetalLover91
Member
So what does this mean for a Wii U Trauma Centre game?
That was never gonna happen anyway 
SteveWinwood
Member
did you read anything other than the titleWell. There goes any chance for another Valkyria Chronicles. To Sega, I salute you for this great series and the good stuff you've done in the past, and I at least hope this new direction will be lucrative for you.
CertifiedFP
Member
Well. There goes any chance for another Valkyria Chronicles. To Sega, I salute you for this great series and the good stuff you've done in the past, and I at least hope this new direction will be lucrative for you.
Pretty sure this is just affecting the western division. You should be more worried about localization of another VC.
I know its in the title, but SEGA Europe confirmed to Gamespot that none of it's development teams are effected in the restructuring.
http://www.gamespot.com/articles/sega-to-axe-300-jobs-as-focus-turns-to-pc-and-mobi/1100-6424996/
Yeah a lot of people don't realise how massive SEGA actually is so the thoughts of a buy out are a bit far fetched. I still see people assuming The Creative Assembly etc are all third party developers but they are an entirely owned subsidiary of SEGA.
I don't see these studios going anywhere soon either since they maintain consistent franchises that always turn out a million or two in sales or have a sound digital business. Strangely the news of the restructuring occurs the day after they announce Dengeki Bunko Fighting Climax.
http://www.gamespot.com/articles/sega-to-axe-300-jobs-as-focus-turns-to-pc-and-mobi/1100-6424996/
Oh I see. So SEGA JP is safe
Wow they have a lot more studios than I thought they would.
Yeah a lot of people don't realise how massive SEGA actually is so the thoughts of a buy out are a bit far fetched. I still see people assuming The Creative Assembly etc are all third party developers but they are an entirely owned subsidiary of SEGA.
I don't see these studios going anywhere soon either since they maintain consistent franchises that always turn out a million or two in sales or have a sound digital business. Strangely the news of the restructuring occurs the day after they announce Dengeki Bunko Fighting Climax.
Hari Seldon
Member
I'm really surprised, based on the success of Football Manager, that they haven't expanded into other sports.
Ultra Numb
Member
I hope the people let go land on their feet.
Diddy Kong
Banned
Tough times
To be clear they've only announced 120 of the 300 layoffs as coming from the West as the Japanese review is still going.Oh I see. So SEGA JP is safe
Wow they have a lot more studios than I thought they would.
A kung fu brawler is a great way to market the game no doubt. I was using a bit of hyperbole about the cat and girlfriend but at the same time, think about how little actual fighting there is in Shenmue 1. Especially in the first half, there might be 2-3 short fights in total. Also, didn't the sort of follow up to Heavy Rain, Beyond Two Souls, fail to live up to sales expectations? It's just a huge risk for a company that hasn't been a risk taker for a long time now.
Even if it was, it's not like gaming wasn't already doing that itself.
Acquiescence
Member
It's true, there isn't a whole lot of actual combat in Shenmue, but shhhhhh, the general public doesn't have to know that! Besides, they'll get their combat fix in the sequel anyway. As for Beyond, yeah it didn't do as well as Heavy Rain, but that was because it was a whole lot worse. Judging by Quantic Dream's tone though, it seemed to sell okay and managed to make a profit. 1.5 million was the last figure I heard, but that was a while ago. And yes, Sega has been incredibly risk-averse in recent years, which is why Sony needs to step in and foot the bill. They actually seem eager to, but there are significant copyright issues stopping the ports from happening.
How so? There are more people gaming than ever before. The AAA or bust mentality is ruining gaming.
There are some really good mobile games.
It means they're not getting shut down, since they're primarily PC developers, and Sega is focusing on PC.
Mr.Marston
Member
Wow
RIP Sega
RIP Sega
Delusibeta
Banned
So, it appears that it's primarily the publishing arms getting the chop, and particularly Sega of America. TBH, I'm not sure why they have both Sega of America and Atlus US open, they really should merge the two together.
I posted this as an update in the OP since people still seem confused.
http://fs.magicalir.net/tdnet/2015/6460/20150130014909.pdf
Also:
http://fs.magicalir.net/tdnet/2015/6460/20150130014909.pdf
Sega said:Notice of Implementation of Structure Reform in SEGA Corporation
It is hereby notified that SEGA SAMMY HOLDINGS INC. (the “Company”
its Board of Directors meeting, held on January 30, 2015, to implement measures for structure
reform in SEGA Corporation (“SEGA”
1. Implementation of Group Structure Reform
The Company established the Group Structure Reform Division on May 9, 2014, and has held
discussions to review the earnings structure of the entire Group from a mid to long-term point
of view. The Group announced on October 31 three initiatives: 1) restructuring into three
business groups, 2) initiatives to drastically improve profitability, and 3) appointment of
personnel in charge of structure reform in SEGA, and has developed a structure to enable
investment of management resources in growth areas, which include new fields such as Digital
Games and Resort Business, while addressing issues in existing businesses.
As part of these measures, SEGA has positioned Digital Games, centered around smartphone
and PC online gaming, as a growth area and has determined to implement the following
measures in order to constantly post profits by improving management efficiency while
promptly promoting redistribution of management resources.
2. Details of Measures for Structure Reform in SEGA
a. Enhancing efficiency in domestic (Japanese) businesses
SEGA will review its business structures mainly in Amusement Businesses (arcade machines) 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 (publishing staff, not development staff) 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.
4. Future outlook
The Group is currently assessing the impact on full-year consolidated operating results
forecast for the year ending March 31, 2015 from aforementioned structure reform measures
implemented in SEGA.
The Group is taking initiatives for structure reform including soliciting voluntary retirement
at several group companies in addition to the aforementioned measures implemented in SEGA.
The number solicited for voluntary retirement and such for the entire Group is scheduled to be
around 300 (regular employees) and the early retirement benefit is expected as a result of this
measure. The Group also plans to rightsize employees, including fixed-term employees. In
addition to the aforementioned labor costs reduction, the Group is taking measures such as
implementing actions for enhancing efficiency in domestic and overseas businesses.
Taking into consideration the above, the impact on the full-year consolidated operating results
forecast for the year ending March 31, 2015 is that net income is expected to fall but the detail
of the forecast is currently being assessed. It is scheduled to be announced with the third
quarter results announcement scheduled for February 12, 2015, after acknowledging sales
trends of mainstay products in the fourth quarter.
Also:
GameSpot said:
Think whatever the effects are for SEGA Japan, it's going to principally effect the arcade division which has been seeing team members transferred from there and going into console (Hatsune Miku) and mobile (Chain Chronicle) development.
I dunno Sega has been cutting and restructuring every year or two for a while now. It was inevitable itd eventually lead to this.
baggagelizard
Banned
if the website is any indication, their (western) arcade division is .. um...
http://www.segaarcade.com/
http://www.segaarcade.com/
wow. sucks.
I walked into target in 1987 with the decision to make between a Master System or an NES. I chose the Master System and never looked back or regretted it. Sega will always be my first console purchased as a teen (well, 12)
Sega could still be fine. They actually have some nice mobile titles out there, and hell knows I would buy the shit out of PSO2 on PC in the US.. Still reduced focus on arcades and consoles is saddening. Not to mention the PC gods that are CA and Relic.
Would love to see Sony buy Shenmue.. Hell, if MS bought Shenmue I would probably even buy an XBONE for it day one.
I walked into target in 1987 with the decision to make between a Master System or an NES. I chose the Master System and never looked back or regretted it. Sega will always be my first console purchased as a teen (well, 12)
Sega could still be fine. They actually have some nice mobile titles out there, and hell knows I would buy the shit out of PSO2 on PC in the US.. Still reduced focus on arcades and consoles is saddening. Not to mention the PC gods that are CA and Relic.
Would love to see Sony buy Shenmue.. Hell, if MS bought Shenmue I would probably even buy an XBONE for it day one.
Okay, I also added this in case it isn't clear.
Quick Breakdown:
-Sega is continuing their refocus to digital games.
-As part of this, they're downsizing their Western publishing business (but not their Western development studios), and staff in their arcade game department in Japan. They're also transferring the staff they can to mobile/PC Online in particular.
-So far 120 layoffs have been announced at Sega West, primarily in Sega of America and some in Sega of Europe (this is the publishing business, not the studios).
-Sega intends 300 layoffs total, with a notable portion of that presumably coming from the arcade business in Japan.
-They're plausibly also changing what some of their staff work on - and we've certainly seen that over time from Sega - but that's not directly related to the layoffs we're talking about today. The layoffs are focused on business components that can't easily be transferred to digital, which are primarily retail publishing resources and physical devices like arcade machines.
Quick Breakdown:
-Sega is continuing their refocus to digital games.
-As part of this, they're downsizing their Western publishing business (but not their Western development studios), and staff in their arcade game department in Japan. They're also transferring the staff they can to mobile/PC Online in particular.
-So far 120 layoffs have been announced at Sega West, primarily in Sega of America and some in Sega of Europe (this is the publishing business, not the studios).
-Sega intends 300 layoffs total, with a notable portion of that presumably coming from the arcade business in Japan.
-They're plausibly also changing what some of their staff work on - and we've certainly seen that over time from Sega - but that's not directly related to the layoffs we're talking about today. The layoffs are focused on business components that can't easily be transferred to digital, which are primarily retail publishing resources and physical devices like arcade machines.
I'm guessing they didn't have the need for packaged good anymore. Their quarterly reports seem to indicate they make the majority of their revenue on PC and mobile now, how many of those games sold at retail?
The Yakuza games could benefit from some experimentation, especially as they were localised to the West kicking and screaming. Shit, they even experimented with Yakuza for the Wii U, any layman could tell them that money probably would be better invested in other platforms like the PC.
King Tubby
Member
I don't think this will affect Atlus too much. SMT/Persona has to be one of Sega's biggest VG franchises, I don't think they have any interest in messing with those. We may see more of an SMT presence on mobile devices however. As long as it doesn't result in a refocus away from console/handheld releases, I would love to see more ports of SMT games to iPhone/Android.
so (for consoles) could that mean retail vs. PSN/etc? or is it more likely looking at console vs. mobile?
JohnnyFootball
GerAlt-Right. Ciriously.
Sucks for those losing their jobs, but please do NOT cut anyone working at Creative Assembly so that they can make another Alien Isolation like game.
Hibiki Kurosawa
Member
lol my happiness may have overshadowed my manners. Apologies.
KratosEnergyDrink
Member
The end is near ...
It depends on the product and the market.
Their Western branch doesn't produce a lot of mobile games for example. They primarily do PC digital through Steam even though they have retail packages shipped out.
In Japan, that tends to be mobile or PC focused (a la PSO2), but there are also digital heavy approaches through add-on content. For example, the second Miku Vita game has vastly more DLC than any previous entry and will presumably have a longer shelf life, so they focus less on shipping retail products, and more on getting high margin digital revenue, but are still shipping retail products.
We also see Sonic Team releasing a mobile game. It's not implausible they also have a console game, but there is a focus on making sure they're working on digital revenue as well.
Some teams have fully moved over, certainly. They're not abandoning all retail tomorrow though, since we're not at the point where that makes sense for every market given their strengths. However, they will continue to push more and more toward digital.
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