300 Jobs To Go At Sega As The Company Moves Away From Consoles

Once a giant of the video game industry, Sega has seen its profits and market share fall in recent years and has now announced it will be cutting 300 staff. The move will also see the company focus on mobile and online PC games, and retreat from packaged retail games on consoles.

“Voluntary retirement will be solicited in the aforementioned businesses to be withdrawn or consolidated and downsized, while at the same time personnel will be repositioned in Digital Games and growth areas of Group mainly as development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,” said Sega in a statement.

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The company will also be closing it’s San Francisco office and moving it to Southern California as part of the restructure.

The recentSonic games have been met with low review scores but Alien Isolation was a hit with reviewers, has sold over 1 million copies and is currently number 27 in the UK charts, four months after it was released.

It has been a slow, sad decline for the company which ruled the late eighties with the Megadrive. I often go past their now empty London offices, the large blue Sega sign on the roof is slowly falling apart. What happens to the big console franchise such as Yakuza is unclear, perhaps they will live on as smartphone games.

As for Sonic, in 2013 Sega announced a worldwide partnership with Nintendo for three Sonic games which have since been published. If there is going to be any more “proper” Sonic titles the chances are they will end up on Nintendo console.

Source: Develop

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17 Comments

  1. :( I loved Alien Isolation hope the staffs will get something soon, perhaps to work with other companies.

    • Creative Assembly do Total War, they are still doing PC games.

  2. Isn’t San Francisco in california

    • Sorry missed the word “southern”

  3. This is terrible news! The final nail in the coffin for another Jet Set Radio.

    Sega has some awesome IPs, it would be sad to see them limited to mobile.

    • They should sell off their ip’s that they have no plans to use. They’ve got so many.

  4. What a shame that a once great powerhouse of gaming as been reduced to a bit part player in the freemium gaming market. It’s quite sad to see their slow and steady decline into obscurity.

    Just goes to show, no matter how big of a juggernaut you think a brand is nothing lasts forever and it only takes a few wrong moves to unravel it all…

    • Sad but it’s how the world turns. These big companies are sometimes too big to adapt to the rapidly changing market and so the big companies fall by the wayside.
      I used to work for the one time housewife’s favourite “Kays Catalogue” until it became very apparent in the mid to late 90s that massive bulky catalogues were very quickly going to be taken over by TV (at the time) and latterly online avenues. Sure enough, today Kays is almost forgotten and now offers their goods at quite frankly illegal prices – £74 for GTAV on PS4 and FIFA15 for £64 (that’s a ‘sale’ price). At least they’ve kept the old logo for their website.
      Best wishes to all those who are in the line of fire at SEGA.

  5. That’s a real shame. Alien Isolation was one of the best games released last year and yet the most popular gaming site on the net rated it not much higer than Colonial Marines…

  6. This news is not good for people wanting Shenmue 3 or rumoured Shenmue 1 HD. So the only way it’s gonna be released, if ever, would be digitally?

  7. Creative assembly may be sold to another company or go independent again. The alien licence may be sold too.

  8. Seems silly throwing most of their eggs into mobile, where a hit game is not guaranteed by any means.

    Seems like bad decisions has got them where they are. They have an IP in Yakuza that would be well received in the west if it was localised properly and not years later.

  9. Very much hope Creative Assembly will be doing another Alien game, they did a fantastic job there. Alien Isolation is one of the best games I’ve experienced for a long time.

    Big console franchises living on as smartphone games? Are you joking? I’ve not seen a single proper game yet, which was not just a bad joke on smartphones, after being transferred from a console.

  10. I think it’s time for more of a change at SEGA. They might be in the middle or a reorganization of their business structure, but I think they need a new figure head, someone the public knows, someone who’s proud of what they do, someone confident, brash and exciting. I would vote for Sam Fox as next SEGA CEO. Vote SAM!

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