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Sega cancels games, plans layoffs
Sega cancels games, plans layoffs
March 30, 2012 | By Mike Rose

March 30, 2012 | By Mike Rose
More: Console/PC, Business/Marketing

Sega Sammy today halved its forecast for the company's current fiscal year, due to the state of the economic environment in the U.S. and Europe, and the "rapid change" in the video game market environment.

As a result, the company has announced plans for layoffs within its U.S. and European home video game business, with a reduction in future video game releases on the cards. Sega Sammy said the move will create a smaller company positioned for sustained profitability.

Sega has canceled development on a number of software titles, although it did not state exactly which games have been canceled -- rather, it said that games based on strong IPs such as Sonic the Hedgehog, Football Manager, Total War and Aliens have not been canceled.

Gamasutra has contacted Sega to clarify which games it plans to cancel development on.

Sega Sammy estimates that it will record total losses of 7.1 billion ($86.4 million) as part of this structural reform.

For the fiscal year ended March 31, 2012, the company has reduced its fiscal forecasted revenue to 394 billion ($4.8 billion), down from the previously estimated 440 billion ($5.4 billion), and profits of 20 billion ($243.5 million), down from the originally estimated 38 billion ($462.6 million).

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thay thay
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I think that is a poor excuse to blame it on US economy. Sega has made some questionable biz decisions over the years. There are too many sonic platform games. Take a look at mario. Nintendo releases very few mario platform games but use the mario brand for other game genres. Another dumb move: they plan to release PSO on PC, eVita, iOS but not on 360, PS3 and wii-u?? Why no current gen updates to outrun, shenmue (tho rumored), streets of rage, etc. Their latest releases of daytona and rally were lackluster. Sega has a vast amount of IP that is being wasted.

Eric McVinney
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^This. 100%.

I, too, was surprised about the news of PSO being on PC, Vita and iOS... While I can understand the market for the PC being a viable option, it did baffle me that there wasn't a 360 and(or) PS3 port.

Robert Boyd
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"Nintendo releases very few mario platform games"

Nintendo releases a new Mario platformer almost every year these days. It's just less noticeable because they go back and forth between home consoles & portables.

Cody Scott
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I've been saying this for years. This make me wish that they would just sell the Sega half of the company to someone who knows what they are doing

Daye Williams
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Its time for Sonic sit on the bench for awhile. They've tried to many swings, & have accumulated to many misses.

On the other hand, Sega has released some awesome titles recently & I hate how their not getting the attention they deserved.

Josh Bycer
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I guess my blog post about hopefully getting Valkyria Chronicles 3 in the US is going to fall on deaf ears now.