Sega to streamline, cancelling projects, cutting jobs

Sonic publisher Sega has announced its intentions to streamline its business in the US and EU. In the long term that could mean better quality releases, but in the short term it sadly means game cancellations and job cutbacks. The company is said to be facing “extraordinary loss” for fiscal 2012, which ends tomorrow.

A statement from the publisher read: “The Consumer Business centered on Sega Corporation is expected to post operating loss in the year ending March 2012, due to the challenging economic climate and significant changes in the home video game software market environment in the US and Europe.

“Given this circumstance, the companies determined that in order to actualise earnings recovery of the Consumer Business in the following period and after and return to a growth path, it is essential to streamline organisations in the field of home video game software in the US and European markets, while shifting to a structure that corresponds to change in environment, including strengthening development in the field of digital content.”

Parent company Sega Sammy said of the situation: “We conducted detailed reviews of earnings projections for titles targeted toward the US and European markets and decided to narrow down sales titles from the following period and after 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.”

Let’s hope the losses aren’t too huge; we’d hate to see one of the industry’s best publishers scale back on its presence. At least promising titles like Aliens: Colonial Marines are seemingly safe for now.

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