So I was reading about Activision's plans for Bizzare Creations on the blog and considered castigating them for considering disbandment.
Then I immediately thought about all the studios EA has fucked with and shuttered.
The recent bankruptcy of the legendary company Midway also came to mind (while Mortal Kombat was acquired by Warner, several studios didn't survive).
And finally I thought about Sega, recently they shuttered Secret Level although few would argue that Secret Level should exist after they fucked 3 games in a row.
While Secret Level deserved the boot, other studios didn't. I guess the most recent example would be Guy Wilday's SRS (Sega Racing Studio) a good studio, capable of making fun games was giving the boot. well that isn't true. A deal was made with CodeMaster and they absorbed the entire team.
Other studios from Sega's Past haven't been so lucky, No Cliche is perhaps the best example acquired during the Dreamcast era by Sega Europe responsible for Dreamcast classic's such as Toy Commander and Quake 3 Arena was really fucked bad by Sega. They were 75% through developing a Survival Horror game for Dreamcast, when Sega stopped funding of the game, they tried to survive by porting an enhanced version of Toy Commander to PC but the port couldn't materialize and the studio was disbanded mainly cause Sega was no longer interested in them.
http://www.gamekult.com/articles/A0000001184/ (Agarhta Screen Shots still look good)
A perfectly capable destroyed, Sir Frédérick Raynal head of the studio suffered for several years after the foreclosure until finally landing a job at UbiSoft.
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Other contracted studios have suffered as well at the hands of Sega.
The Late Amuze entertainment worked for 3 years developing one of the best games for Dreamcast HEADHUNTER, the game still holds up well against the finest 6th generation games today.
http://en.wikipedia.org/wiki/Headhunter_(video_game)
How did Sega pay them for all their hard work, by not releasing HeadHunter outside Europe, they released a sequel to HeadHunter that I haven't played yet, but I hear it wasn't as good as the original.
The Studio closed soon after HeadHunter: Redemption.
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There are several other studios on the list, that have suffered because of Sega's poor decision making skills which studio do you feel most passionately about?
I'm personally torn between these Amuze and No Cliche.