SEGA fires 73 workers, expanding digital content

SEGA has let go of 73 of its employees today, all part of their business reorganization as they move on focusing on social and digital games. 36 of the employees are from SEGA’s San Francisco branch and 37 from London. SEGA of America is said to be working exclusively on downloadable content int their newly formed digital division, while SEGA of Europe will act as the administrative hub, also handle console and PC games.

“In recent years, digital platforms have taken an increasing share of video gaming revenues and we believe this growth is set to continue, SEGA has already enjoyed commercial success within this new and exciting gaming medium and it is now the company’s intention to fully embrace change and set a strategy not only to maximize revenues within the digital space but, through innovation and quality, take up a leadership position.”

Mike Hayes says this is just Chapter 2 in SEGA’s continued evolution from being a hardware manufacturer.

“It’s quite interesting, if you look at Sega’s relatively short modern history when we reinvented ourselves as a multi-platform publisher, the excitement for us was being on the PlayStation 2 and Gamecube and Xbox, and we sort of travelled a path where our market share has increased significantly over the past five years in both North America and in the European territories,”[The new focus on digital media] is part of our ongoing expansion, which is great. We have a very strong base now in the traditional business. We still want to grow, we still want to be very competitive, but in terms of development and growing our overall market share, part of that sort of journey for Sega, sort of like chapter two, is this big digital arena. It’s new, it provides new outlets for us. We can do different things in terms of gaming experiences, which is interesting for us. So in a way it’s sort of a part of the ongoing rebirth of Sega as a multi-platform agnostic publisher of games.”

– Mike Hayes (President and COO of SEGA West)

Hayes says that the layoffs are mainly due to having people in the American and London offices doing the same tasks, now that they are working closer together they no longer need those workers.

“There was a lot of duality, there was a lot of doing the same work twice. There was a lot of copying between both San Francisco and London. So it’s kind of a natural question of how do we become more efficient and affective as an operation, and that’s what the exercise has been.”

– Mike Hayes (President and COO of SEGA West)

The firings will not impact SEGA’s current schedule, or the number of traditional retail games releeased. I find SEGA’s move to digital content to be a big positive thing and I even have a list of games I want. Come on SEGA, read up!

It does suck that they had to fire so many workers and I hope they find jobs soon.

[Source: 1up]
[Thanks: ShadiWulf]


3 responses to “SEGA fires 73 workers, expanding digital content

  1. Emmett The Crab says:

    Now have XBLA Space Harrier and Panzer Dragoon trilogy!

  2. SoA should focus on bringing oldies to new systems. Put all their resources into Panzer Dragoon Saga HD!

  3. Sega Stylista says:

    I don't want beloved classics, I want licensed crap by crappy studios that end up being shut down, please go back to the Simon Jeffrey way of excellence and lack of profits, please!!!

    Don't forget the kiddy focus group Sonics and casual games either.

    Yakuza west? Never no! no!

    Please DO NOT rebuild the Sega brand with quality and style!

    This is the NEW Sega, rrrrr, actually it is the old Sega or the "old" new Sega, rrrrr… fuck it.

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