SEGA cuts back and reforms in the West

When you think about Sega, mostly Eastern games/development springs to mind; Sonic, Yakuza, Valkyria Chronicles etc. For that reason, when it comes to making job cuts it might not be surprising to hear it’s all happening in the West. The company’s London studio has suffered a cut of 37 jobs, and a further 36 have been lost in San Fransico. Sadly, this is around 12 per cent of Sega West’s work force gone.

But it’s not all in vein however, as the publisher is to reform with a clear focus on digital and traditional gaming. San Francisco is now primarily concerned with downloadable games, while London is to focus on packaged goods. Sega are hoping the more straightforward approach to these different products will bring them great success.

Sega West president, Mike Hayes helped to explain the situation, saying, “Traditionally, Sega of America and Sega Europe had been running a dual company where both would look at traditional goods and both would look at the digital side. What we decided to do is to make San Francisco the kind of hub for our digital efforts, and therefore make London the hub for the traditional packaged goods part.”

Quick to wipe out any sign of weakness, Hayes also added, “I would stress, however, that this is very much administrative reorganization, because clearly we want to be very successful with digital globally. Likewise, we want to continue to be successful with traditional goods. So the reorganization allows us to be much more efficient in terms of our costs, but probably more importantly in the way that we can look at the future business.”