The weak arm becomes the weak finger: 300 Jobs cut at Sega America

[Sharky]

Very sad for those losing their jobs. I'm shocked there was 300 people IN SoA, what did they all do? I know PC and Tablet gamming is SEGAs strongest market these days, but it worries me they are moving so quickly away from retail. Perhaps it's not as bad as it sounds, I assumed most things Western were run from Sega Europe these days?

[MadeManG74]

LET THE FEAR MONGERING BEGIN!

Also, Sega was already on their way to becoming the new PopCap games. Wait until VF6 turns out to actually be a pachinko emulator for Smart Phones with micro transactions.

And it's not like they are moving 'quickly' from retail. Look how their retail output dropped so drastically in the recent years. Last year they released about three games, and only one of them was any good anyway.

 

[Trippled]

Also, Sega was already on their way to becoming the new PopCap games. Wait until VF6 turns out to actually be a pachinko emulator for Smart Phones with micro transactions.

And it's not like they are moving 'quickly' from retail. Look how their retail output dropped so drastically in the recent years. Last year they released about three games, and only one of them was any good anyway.

Know its a joke but the fighting games they operate in Japan in Arcades actually do well, so a real VF6 is a sure thing.


This concerns their arcade division as well tough.


They are launching two new products this year (Wonderland Wars and Chunnithm), so I wonder....

[Aki-at]

Also, Sega was already on their way to becoming the new PopCap games. Wait until VF6 turns out to actually be a pachinko emulator for Smart Phones with micro transactions.

And it's not like they are moving 'quickly' from retail. Look how their retail output dropped so drastically in the recent years. Last year they released about three games, and only one of them was any good anyway.

Listen Mang, Sonic Boom wasn't a good game.

I know you're a woman hating monster, but Miku and Alien were EXCELLENT games.

[MadeManG74]

Listen Mang, Sonic Boom wasn't a good game.

I know you're a woman hating monster, but Miku and Alien were EXCELLENT games.

How could I forget about Miku...

Know its a joke but the fighting games they operate in Japan in Arcades actually do well, so a real VF6 is a sure thing.


This concerns their arcade division as well tough.


They are launching two new products this year (Wonderland Wars and Chunnithm), so I wonder....

Yeah I feel like arcade divisions will be gutted as well, but I agree that VF6 is still very likely. It's a big property in Japan, and even if they feel they can make more money with mobile games, that franchise still needs to stay relevant if they want to exploit it. To do that, I think they realise they still need to make quality VF games to keep it in the public eye so we'll buy Combo Maniacs 2: Revenge of Lau.

[Barry the Nomad]

What I find odd is how people are surprised by this. I don't mean that in a "hur hur SEGA sucks and this was coming", but SEGA has made numerous promises for changes over the past few years - including focusing on fewer packaged releases and shifting focus to digital and PC. Also, SEGA of America's move makes sense given Atlus USA is in SoCal and SEGA wants to create movies, tv, and animation from classic IPs. What's in SoCal? Hollywood.

Also, it's not like SEGA Sammy are stepping in and ruining something that was working. SEGA of America has had problems for a while now, and perhaps these changes are a good thing.

[Trippled]

I think this cabinet was a huge failure for Sega.

Usually these big machines are a huge investment and pretty much everyone of them by Sega has been a pretty good success.

I mean, they have been focusing on updating existing games and singular cabinets became less anyway...

[CrazyT]

Hope those 300 will get back on their feet

SEGA more and more is becoming your typical japanese gaming company nowadays. I guess the low effort/risk mobile business is producing more gains than the high cost/effort console. I mean ofcourse when SEGA has been driving a short term quick buck mentality with a lot of its franchises, they were destined to lose value in the long term with how careless they would handle them. Imho SEGA needs to keep doing what its doing and get rid of the things they're unlikely gonna use anymore. They can keep yakuza, phantasy star and miku whatever, but a lot of their cherished IP's are destined to be mistreaten by SEGA so imho they're not worth keeping for them. I mean IF anyone see's the benefit of it to buy, i'd really like it if SEGA just sold some of the IP's to other companies.

They should also try out phantasy star 0-2 on 3DS.

[MadeManG74]

What I find odd is how people are surprised by this. I don't mean that in a "hur hur SEGA sucks and this was coming", but SEGA has made numerous promises for changes over the past few years - including focusing on fewer packaged releases and shifting focus to digital and PC. Also, SEGA of America's move makes sense given Atlus USA is in SoCal and SEGA wants to create movies, tv, and animation from classic IPs. What's in SoCal? Hollywood.

Also, it's not like SEGA Sammy are stepping in and ruining something that was working. SEGA of America has had problems for a while now, and perhaps these changes are a good thing.

To us it makes sense, but to 99% of the gaming public this news is:

Sonic Boom failed! Nintendo is going to buy Sega!

Gearbox robbed Sega and now they are going to file for Bankruptcy!

Atlus is going to be destroyed again! Who will buy the Sonic IP? Platinum!?

Hope those 300 will get back on their feet

O I am laffin.




EDIT: NeoGAF showing their usual Ninty Fanboy chops (they also seem to love Fatlus):


Damn, well Sega had a good run.
[/size]RIP in Peace, Sega.[/color]
[/size]Losing your job sucks but "early retirement" doesn't sound too bad. I am ready for a f2p mobile Total War and my Sonic moba.[/color]
[/size]The beginning of the end. Kinda insensitive but true.[/color]
[/size]Didn't expect to see Sega fall twice.[/color]
[/size]Nintendo should buy the rights to console Sonic games.[/color]
[/size]As long as Atlus is good...[/color]
[/size]The end times at SEGA have begun.[/color]
[/size]That said, other than Sonic, I can't think of anything else they release on console.[/color]
[/size]Why the hell did they have to go and buy Atlus?!?[/color]
[/size]Guys I am legit scared...[/color][/size]What the hell happens to Atlus? This kind of shit is exactly why I was almost dead inside when news broke of them buying Atlus...Please for the love of that is Shiva, Budda, Jesus, Moses, and Ra, PLEASE ATLUS BE OK!
I swear this is even worse than if they one day just went out of business.
Yeah, this is like watching you favorite uncle die.






This is just the first page too  [/color]

[George]

All I see is a bunch of idiots running around pretending they know whats going behind the curtains at a company and predicting doom and gloom. Answer me this: When was the last game released by SOA that didn't bomb? So wouldn't giving this team less money/resources be a good thing?

Company of Heroes 2 doesn't count, it was well into development before SEGA got their hands on that team.

[MadeManG74]

All I see is a bunch of idiots running around pretending they know whats going behind the curtains at a company and predicting doom and gloom. Answer me this: When was the last game released by SOA that didn't bomb? So wouldn't giving this team less money/resources be a good thing?

Company of Heroes 2 doesn't count, it was well into development before SEGA got their hands on that team.

Also I believe they are closing distribution and publishing for retail packaged games, not development teams, right?
Just like Sega Australia where they replaced their distribution arm and outsourced to Five Star Games.

[Trippled]

The most tragic thing is that San Francisco is an iconic location for Sega.

[SuperSonicEX]

While I am sad to hear about this (especially the move from San Fransisco, but I assume the cost for that location in a general sense are ridiculously high), I guess I shouldn't be too surprised in a sense, the combination of many factors obviously lead to this including Boom's failure of a launch and the scrambling afterwards to fix it.  I feel for those affected by the cuts and I honestly hope they can bounce back on their feet soon.

Like Sharky said, I'm also worried about the moving away from retail, I know this won't affect recent announcements but I'm thinking about future projects.  I imagine if we want something to see a retail release (or even a release in the West at all), we may have to turn to major console makers like Sony more often for some assistance.

...I'm also not surprised at the reaction/comments (particularly those by NeoGAF), at all.

[Trippled]

Well I ran into an interresting comment in TSSZ...

SEGA will unveil its full restructuring business platform on February 12th a day before AOU. A full fledged press conference and press release will take place on that day.

Like I said, Sega is establishing two new divisions: Sega Networks Corporation,Inc and Sega Entertainment Corporation,Ltd Worldwide.

As for Sega of America, they are moving to L.A. Part of the deal is to set up a suite near Santa Ana,CA so that Sega Networks America can work closely with Hollywood studios and other partnership companies.

Which probably explains why the Orbi Yokohama brand is multi branded: https://trademarks.justia.com/855/17/orbi-85517210.html

As for the Amusement Layoffs, I did some digging. It pertains mostly to the actual software R&D dept at Sega who’s Amusement resources are being moved to SEC,Ltd. The company is planning some major unveilings and surprises at AOU. PR and details shall also be disclosed at the Garage Kit Festival “Wonderful 2015″ In Tokyo next Sunday. Sega is using Hatsune Miku and Sega Hard Girls to promo.

As for PC, Sega has 2 new Total War games planned as well as a new Shinning Resonance Arcade game and Steam game planned.

Look out for the 12th?

[Aki-at]

I don't believe that rumour. Although I could see Virtua Fighter 6 being announced then or later this year.