SEGA hit by 73 people layoff, more focus on digital games

[Happy Cat]

1UP: How exactly is Sega defining digital platforms for its new Digital division?

Mike Hayes: It's a good question, because it's such a broad space. Digital for us is kind of really all the checkboxes you'd get. For us it's certainly all mobile devices - iPhone, iPad, the interesting new devices we're seeing from other players, for example Microsoft. It includes games for XBLA, for PSN, for Virtual Console. It also then goes beyond to cover distribution methods like on PC, and then it's also going to encompass everything to do with social gaming and casual gaming. So it's a broad spectrum, but it's kind of everything that isn't physically going to be shipped in a box of some sort. So naturally there are huge gray areas between what is digital and what is boxed because, but it's broadly that definition which we're encompassing into the new Digital group.

[Sega Stylista]

The whole Sega restructuring deal has been underplayed here: studio shutdown, 73 staff let go, Gameworks liquidated (a lot of staff with that), move to digital, European management, etc.  Kind of makes you wonder if the company is not in more financial peril than it seems.

On another level I think it is awesome they are getting rid of all this overhead and making the company leaner and meaner.

I have a lot arcade nostalgia, but reality is that they are long dead in America.  Digital is where it is at and hopefully it will make Sega strong again.

Digital space = new arcades.

[max_cady]

I've listened to the IW podcast this week and it kinda confirms all that, but in less detail. Again, added dramatic empashis on the death of Sega in North America.

Considering that PR and marketing was the core of the layoffs, it's Sega's way of admitting that their marketing efforts in North America were not up to snuff.

[Sharky]

I don't think this means Sega are in more financial peril than it seems, infact I think they are finally pulling a profit this year.

This is Mike Hayes fixing Simon Jeffreys mess, Before SoE and SoA were doing the exact same thing... same buisness model the only difference is that SoE was doing it well and SoA was making poor buisness choices, wasting money and cancelling projects.
Take Alpha Protocol, vastly over budget, delayed to hell and back and BOUND to flop.

I think Hayes is doing what should have been done years ago.

Not to mention Digital games and digital distribution is the future... Having a whole team ready for that it a good way to be a leader in that part of the industry.

[Barry the Nomad]

I don't think this means Sega are in more financial peril than it seems, infact I think they are finally pulling a profit this year.

This is Mike Hayes fixing Simon Jeffreys mess, Before SoE and SoA were doing the exact same thing... same buisness model the only difference is that SoE was doing it well and SoA was making poor buisness choices, wasting money and cancelling projects.
Take Alpha Protocol, vastly over budget, delayed to hell and back and BOUND to flop.

I think Hayes is doing what should have been done years ago.

Not to mention Digital games and digital distribution is the future... Having a whole team ready for that it a good way to be a leader in that part of the industry.

Agreed! It's a real shame that all the big time gaming blogs are spinning this as a "Sega is in the shit" story. I see it as a huge positive FIXING what shit Sega was in. The dozens of comments I've seen on other sites regarding this story are just nonsense. "Sega is f-ing up again!", "RIP SEGA", "they haven't had a good game in years", etc.

[Sega Stylista]

Smart fans will note Sega stock is up 10% for the month of april:

http://finance.yahoo.com/q/bc?s=SGAMY.P ... Chart&t=3m

[max_cady]

Here's the IW episode I'm talking about...

http://http://www.gametrailers.com/video/episode-105-invisible-walls/65171

The fun begins at the 12 minute mark.

An interesting week for Sega no doubt, except they forget to mention Sega Sammy's fiscal year, I'm surprised how their profitable fiscal year has been downplayed in general.

They still make some valid points, though.


Update: Did I mentioned that the guy playing Sonic 1 in that video makes me nervous? What a terrible player.

[Sharky]

Here's the IW episode I'm talking about...

http://http://www.gametrailers.com/video/episode-105-invisible-walls/65171

The fun begins at the 12 minute mark.

An interesting week for Sega no doubt, except they forget to mention Sega Sammy's fiscal year, I'm surprised how their profitable fiscal year has been downplayed in general.

They still make some valid points, though.


Update: Did I mentioned that the guy playing Sonic 1 in that video makes me nervous? What a terrible player.

I made a couple of replies to this video... I was so angry I bolded them... Needless to say last I checked I was getting abunch of thumbs down for saying good things about Sega.

[Sega Stylista]

So, how many people are actually employed at the San Francisco office now?

[Team Andromeda]

I don't think this means Sega are in more financial peril than it seems, infact I think they are finally pulling a profit this year.

This is Mike Hayes fixing Simon Jeffreys mess, Before SoE and SoA were doing the exact same thing... same buisness model the only difference is that SoE was doing it well and SoA was making poor buisness choices, wasting money and cancelling projects.
Take Alpha Protocol, vastly over budget, delayed to hell and back and BOUND to flop.

I think Hayes is doing what should have been done years ago.

Not to mention Digital games and digital distribution is the future... Having a whole team ready for that it a good way to be a leader in that part of the industry.

Not quite Sharky , and SEGA of Japan has had plenty of its own Big Budget flops , and games that have been vastly delayed , and wasting money on games that will never make it out . SEGA sank more in to Shenmue Online , than Alpha for starters , PSU was meant to be SEGA own Final Fantasy game , and had a Budget and Team size to match it , yet that flopped , Nagoshi ww game has been in development for 3 years , and still nothing seen of it

The whole of SEGA is in a mess, no clear direction , and not many good games being made   In-House . And this digital thing is a smoke screen, to cover up the facts that SEGA needs to slash costs for its Consumer Arms . No point in setting up a Digital Arm , when its SEGA Japan and its In-House Teams that hold the IP right and will have the say so, on what goes up . Lets face it , we all want to play SEGA old DC , Saturn and Arcade games online , not that much that came form SOA or SOE really .


The profits you talk of , aren't coming from the Consumer sides , and not much is coming from the Arcade side . Its clear to anyone that looks at them , most is coming from the SAMMY side

[MadeManG74]

TA, please learn to use commas and full stops properly. There is NOT meant to be a space before them, and you use them far too often.

Sorry, I just needed to get that off my chest.

As for what you were saying, I think the truth is somewhere in the middle. They do have a lot of wasted money floating about in unfinished games and cancelled projects, but I don't think they are in dire straights over it. They do need to tighten their belt a little it to avoid things like that in the future though.

I don't think that investing in games like Alpha Protocol and the like are bad moves though, we haven't seen how AP has performed yet, it might actually do well for them. The constant delays have been an issue, but that can happen to any number of games.

[Sharky]

Not quite Sharky , and SEGA of Japan has had plenty of its own Big Budget flops , and games that have been vastly delayed , and wasting money on games that will never make it out . SEGA sank more in to Shenmue Online , than Alpha for starters , PSU was meant to be SEGA own Final Fantasy game , and had a Budget and Team size to match it , yet that flopped , Nagoshi ww game has been in development for 3 years , and still nothing seen of it.

Yeah, that is true but at least Sega Japan have been putting out its fare share of good games that sell well too... (in both arcade and home divisions)

While I can't think of much good SoA have done in the past 5 years... Condemned is really the only thing I can think of and they don't even have that IP anymore... SoA was has been ginger step brother of the company for years.

[Barry the Nomad]

I propose an article that details what SoA has done since Sega went third party. I'm not writing it... just throwing the idea out there.

[Happy Cat]

I propose an article that details what SoA has done since Sega went third party. I'm not writing it... just throwing the idea out there.

This sounds like a job for Aki-at and the Legend of the Mighty Arsenal!

[Aki-at]

You guys realize that would be a rather large critical piece over Simon Jeffrey's reign, right?