In what appears to be the only news we ever report on Sega, the company has announced continuing poor financials. The European and American divisions of the company will se restructuring thanks to an expected loss for the year in excess of $86 million. The company says they plan to remain profitable, but the lowered profits will hurt. As such the company is cancelling many titles already in development and will instead focus on IP that are a safer bet including properties like Sonic and Aliens. The press release had a few comments I thought you’d find interesting.
The Sega consumer business is expected to post operating loss due to the challenging economic climate and significant changes in the home video game software market environment in the US and Europe.
It is essential to streamline [our] organisation in the field of home video game software, while shifting to a structure that corresponds to a change in environment, including strengthening development in the field of digital content.
We decided to narrow down sales titles to strong IPs such as Sonic the Hedgehog, Football Manager, Total War and Aliens which are expected to continue posting solid earnings. In accordance with this, we are cancelling the development of some game software titles.
This is really sad news for an old-school Sega fan like myself. Sega used to be one of the most daring and creative developers out there, and now it’s just sad to see how far they’ve gone.