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

[pirovash88]

Major over reactions from lots of people. but understandable. most people can't be bothered to keep up with an actual companies structure unless they really care.

Press release said increased focus on PC and mobile.. and well. that's kinda already what they've been doing. SEGA West is a PC Powerhouse developer. That's basically the only kinds of games SEGA Europe makes, ignoring hardlight and alien isolation.

Increased focus on mobile is SEGA Networks. Traditional SEGA developers will continue to make console games. They aren't going to scrap Yakuza, Miku, or big Sonic games. I imagine we will continue to see new IP on consoles too every once in a while.

The only cuts are SEGA America and Arcade. SEGA America gutted so they can no longer publish games, the branch has been a mess and SEGA Sammy have finally decided to put it to rest. They will only exist for the mere purpose of distributing the few physical games SEGA has in NA and maybe dealing with some other business like merchandise or localizing. The arcade division got cuts too because apparently arcades are starting to die in Japan.

There was some really cool people at SEGA America and I wish nothing but the best for them. They have done a great job. It's too bad things had to go this way. Thing is though. the writing has been on the wall. Sonic Boom was SEGA America's last chance after all the crap they have been responsible for. It's time to move on and destroy SEGA America in it's current form. They've done nothing but hold SEGA back for many years now. Also, if Sonic Boom the videogame was really a 20 million dollar budget, they've also been wasting a ton of SEGA Sammy's money.

Pretty much on point with that post. I don't see any major changes happening with Sega, just their American division, which was a cancerous tumor to the whole Company.

As long as we get digital releases like Yakuza, I don't really care that they're cutting back on things. I do feel bad for the employees, seeing as how it happened with me when I worked at Borders, inc for 5 years. I wish them all the best as well.

[CrazyT]

Major over reactions from lots of people. but understandable. most people can't be bothered to keep up with an actual companies structure unless they really care.

Press release said increased focus on PC and mobile.. and well. that's kinda already what they've been doing. SEGA West is a PC Powerhouse developer. That's basically the only kinds of games SEGA Europe makes, ignoring hardlight and alien isolation.

Increased focus on mobile is SEGA Networks. Traditional SEGA developers will continue to make console games. They aren't going to scrap Yakuza, Miku, or big Sonic games. I imagine we will continue to see new IP on consoles too every once in a while.

The only cuts are SEGA America and Arcade. SEGA America gutted so they can no longer publish games, the branch has been a mess and SEGA Sammy have finally decided to put it to rest. They will only exist for the mere purpose of distributing the few physical games SEGA has in NA and maybe dealing with some other business like merchandise or localizing. The arcade division got cuts too because apparently arcades are starting to die in Japan.

There was some really cool people at SEGA America and I wish nothing but the best for them. They have done a great job. It's too bad things had to go this way. Thing is though. the writing has been on the wall. Sonic Boom was SEGA America's last chance after all the crap they have been responsible for. It's time to move on and destroy SEGA America in it's current form. They've done nothing but hold SEGA back for many years now. Also, if Sonic Boom the videogame was really a 20 million dollar budget, they've also been wasting a ton of SEGA Sammy's money.

this is really well written and makes a lot of sense. SOA indeed was a mess no katter how great some of the people were. Sonic boom couldnt been anything other than a last straw after already past mistakes like colonial marines. I mean how screwed can u get! They were a bad management and maybe a cleansing is what's needed for now. Maybe when things get a bit more "healthy", they can go back to growing a good team in the US.

More PC is great news!

[Happy Cat]

here is the press release..  mean.. that's just how I see it. Suppose I could be wrong, don't think I am though. I honestly don't see anything changing much from how it is now.

SAN FRANCISCO--(BUSINESS WIRE)--SEGA of America (SOA), the North American operations for one of the world’s leading interactive entertainment companies, today announces its move from San Francisco to Southern California amid a downsizing of the business that will begin from January 2015 to early summer. The announcement was made today by SOA president and COO, John Cheng.

 “This move was crucial to keep SEGA operations moving forward throughout North America and to provide our millions of fans a strong pipeline of content across gaming, TV, merchandising, and more,” said Cheng. “We are confident that by relocating to Southern California we will be able to thrive, grow and become a stronger company because of it.”

Relocation packages are being offered to a number of employees, but there will be positions reduced from the company to streamline operations. The total number of employees affected by this move will be realized after the complete transition is finalized in early summer.

Cheng added, “We are sad to say goodbye to some of the best people in the business and are indebted to them for their hard work and dedication through the years.”

SEGA’s game release schedule will not be affected by the move. The Sonic Boom television series, currently airing on Cartoon Network in the U.S., will also continue its run through 2015.

[Barry the Nomad]

Check out the three page press release on the front page as well. I mean yes, people are losing their jobs and the offices are being moved but there are some very important things to keep in mind: the offices are not being closed, they are being moved. SEGA of Japan hasn't completely given up on SoA. In fact, the shift to focusing primarily on PC and mobile and putting more effort into licensing and merchandising are all good things in my opinion. And they have not ceased boxed games - they're still a thing, but likely 2015 will see the same amount of physical releases as the past few years while the primary focus is PC and mobile.

All I want are good games, and more exposure for classic IPs. If ending things like Rise of Lyric, Colonial Marines, the many Marvel tie-ins, and Daisy Fuentes Pilates is what is to come from this then it could be a good thing. I kind of look at it as ripping off a band-aid. It hurts, but it needs to be done (for better or worse).

[George]

That would depend, are we just cleaning house with lower level people? I know SEGA changes, but is the management that oversaw Boom still keeping their job? This is an important question because if they are going to fire people like Julian and Kellie who have been the voice to SEGA fans for over half a decade because management made bad decisions then its totally not fair.

As far as keeping SOA to digital and PC releases, I don't consider this a bad thing.

[max_cady]

I think everyone agrees on this: layoffs are never cheery news, I know first hand how it's like.


But this was inevitable, seeing how SEGA of America has had a questionable track record. And maybe, just maybe that Sonic Boom video game tie-in was the straw the broke the camels back and seeing how SEGA is considering other venues, it makes sense that they are cutting down on staff that's specifically game related.


Digital right now is where the smart money's at and SEGA already has a sizeable presence with Football Manager and Total War.  I think they should maybe think about their Android / iOS strategy with these free-to-play games.


But speaking of movies and TV shows, VoD's foundation is getting stronger and truth be told, say what you will 'bout the video game, the Sonic Boom show is actually pretty good. The pilot as meh, but everything has been solid gold so far.

[Barry the Nomad]

Thing is we don't know if Julian and Kellie were laid off, or if they were given the option of moving and decided to not take it.

[MadeManG74]

It sounds almost like when they shut down Sega Australia, more like they are cutting the distribution and some local publishing but not development?

As everyone already said, it's a natural step in the direction Sega was already heading anyway, but it's fun to see the reactions on the internet from it.

[fernandeath]

It sounds almost like when they shut down Sega Australia, more like they are cutting the distribution and some local publishing but not development?

As everyone already said, it's a natural step in the direction Sega was already heading anyway, but it's fun to see the reactions on the internet from it.

Yeah, I also see from that same point of view.

[Team Andromeda]

All I want are good games, and more exposure for classic IPs. If ending things like Rise of Lyric, Colonial Marines, the many Marvel tie-ins, and Daisy Fuentes Pilates is what is to come from this then it could be a good thing. I kind of look at it as ripping off a band-aid. It hurts, but it needs to be done (for better or worse).

It's not and its not about the job loses at SOA . Its SEGA Japan and the direction Sammy wants SEGA to take  and you take away 3 to 4 games and SEGA got hardly anything to offer the serious console gamer and I mean the 'console gamer' who I would put to you are  the real  SEGA fans - I really really doubt anybody here is a Die Hard SEGA fan thanks to SEGA's PC or its mobile range, Arcade's maybe (but Arcades are dead in the west) . Its been a worrying sign since some 2011/2 when Sammy massively slashed the R&D .


There's hardly anything to look forward to from SEGA Japan these days other than a 80's skin Yakuza and the hope that 1 day PSO II might come to the west or the consoles and SEGA gives us a VF 6  . Really though SEGA Japan is just falling more and more behind the rest for console development . It's no good for Teams Next Gen production lines and pipe lines to have them focused on Mobile gaming - While any yonger memebers of the team, will  learn nothing about what its neeeded and what its takes to make a good console game, The tech pile lines are geared up for cross gen AAA productions  and so going forward SEGA is going to lose even more and more ground, not that to many SEGA is now.




That is my worry

[Trippled]

^There are always the rumors of Sony and Sega linking up, like Capcom does with Microsoft and Sony nowadays.

[George]

Yep, I don't think its bad taking a page from Capcom's book and signing exclusive deals with Sony. Sony + PC for Virtua Fighter 6 and be represented along side Street Fighter 5 could be what VF needs. Plus fighting games are most popular on PS4.

[Team Andromeda]

^There are always the rumors of Sony and Sega linking up, like Capcom does with Microsoft and Sony nowadays.

And even then what can SEGA offer ? Sony not going to fund Shenmue III and Yakuza only sells 700,000 copies offers nothing to the west and even Sonic I think sold better on the XBox platform  . SONY seems far more happy with Capcom and even Fromsoftware . I'm not sure how many of SEGA In-House team are even geared up to handle a AAA Big Budget console production these days  as Sammy as had the staff focus so much on quick and easy productions , even the Sonic Team gone to bloody mobile

[Trippled]

And even then what can SEGA offer ? Sony not going to fund Shenmue III and Yakuza only sells 700,000 copies . SONY seems far more happy with Capcom and even Fromsoftware . I'm not sure how many of SEGA In-House team are even geared up to handle a AAA Big Budget console production these days  as Sammy as had the staff focus so much on quick and easy productions , even the Sonic Team gone to bloody mobile

We only know that a third of Sega Japan's developers is making mobile. What lies beyond, who knows.

[max_cady]

Thing is we don't know if Julian and Kellie were laid off, or if they were given the option of moving and decided to not take it.

Maybe both. Upper management knows or at least should know the overall travel expenses of their own employees and moving to a new location implies potentially cutting down on staff that will likely spend more money and time getting to the new location.

But back to the general topic, TA makes a couple of good points and I have to say that it is a bit sad to see SEGA doubling down on itself. But adapting to the new market involves making changes that we might not agree or find pleasing.

But this is the new "normal" and it goes very much for every publisher from 2013 onwards: A small number of actual boxed AAA titles and a slew of smaller releases on Mobile / PC. Even digital episodic releases could be a viable option.

Speaking of which, I'm surprised SEGA hasn't done more HD Re-Releases like their direct competitors (Square Enix and their whore-ish attitude towards Dragon Quest, for example).