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Is "Sega" finished?


Comrade
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OK, they're probably not "finished", but they are in a bad way - they've lost 7 billion yen, are shrinking the company and cancelling games.

http://www.theverge.com/gaming/2012/3/30/2913522/sega-slammed-with-7-1-billion-yen-loss-kills-games-shrinks-company

Citing the challenging economic climate and changes in the video game market in the U.S. and Europe, Sega Sammy this morning said it expects Sega's operating losses for the previous year to reach into the billions of yen and that they need to cancel game development and shrink the company.

Reeling from an expected 7.1 billion yen loss, Sega Sammy officials say they need to "streamline organizations in the field of video game software in the U.S. and Europe." That means a significant cut in games under development, shifting to the digital market and a high likelihood of layoffs.

The measures outlined in an early morning press release are significant, though not very specific. They include creating a smaller company positioned for sustained profitability and narrowing the sale of titles down to its strong franchises like Sonic the Hedgehog, Football Manager, Total War and Aliens.

Sega is narrowing the sale of titles down to its strong franchises like Sonic the Hedgehog, Football Manager, Total War and Aliens.

Sega is canceling the development of some games, but the company hasn't yet said which. It sounds like the one-time giant is in the process of looking over its games and figuring out which ones can still make money and which ones should be cut to save costs.

Sega's current announced games in development include Binary Domain (for Windows), London 2012, Virtua Fighter 5: Final Showdown, Jet Set Radio, Sonic the Hedgehog 4: Episode 2, Anarchy Reins, Aliens: Colonial Marines, Phantasy Star Online 2, Super Monkey Ball: Banana Splitz, Doctor Who: The Adventure Games, Yakuza 5, and Hell Yeah! Wrath of the Dead Rabbit.

Sega became a subsidiary of Sammy in 2004, creating the company Sega Sammy Holdings. That parent company reports that while Sega was hit by staggering losses in its fiscal year ending March 2012, the company as a whole will see a projected net income of 20.0 billion yen. Much of that profit comes from the company's successful Pachislot and Pachinko Machines Business, Amusement Machine Business and Amusement Center Operations Business.

Probably no Shenmue 3 this year then.

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Sega's current announced games in development include Binary Domain (for Windows), London 2012, Virtua Fighter 5: Final Showdown, Jet Set Radio, Sonic the Hedgehog 4: Episode 2, Anarchy Reigns, Aliens: Colonial Marines, Phantasy Star Online 2, Super Monkey Ball: Banana Splitz, Doctor Who: The Adventure Games, Yakuza 5, and Hell Yeah! Wrath of the Dead Rabbit.

No cancelling of the boldened games is allowed. Kthx.

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Yakuza sells too much in Japan to cancel. They might not translate future games, though that's not guaranteed either.

VF5 FS's a sure bet, so I'm good for what I'm after. PSO 2's also an unlikely cancel.

So, guess we won't be seeing Streets of Rage 4 HD anytime soon. :/

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Everyone buy Binary Domain! You'll be saving SEGA and getting an amazing game at a bargain price! (currently under £15 at Shopto)

And right here is their problem. I don't think I've seen a single Sega game in half a decade that isn't £15-20 inside a couple of weeks.

When Sonic Generations came out, I wanted it but I had too many things to play, I came back to it after not much time at all and it was £6 new.

SIX QUID.

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Sega, if you're reading this, you may want a bit of advice. Now I'm just a typical fella who plays and enjoys games. I'm no expert on business but how about you do something which many other companies do or at least try to do

MARKET YOUR FUCKIN GAMES!

Now I'm no expert and forgive me as I don't have an MBA but it's something that might, just might work for you in the long run.

PS If you don't bring Yakuza 5 over to the west I WILL cut you.

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Sega is irrelevant now days, their output since the DC has been 99% shite. Sad but true.

I'd actually dispute that, they've been involved in developing/publishing some cracking games in recent years:

Yakuza series

Binary Domain

Vanquish

Bayonetta

Aliens Vs Predator (ok this didnt review so well but I liked it!)

Alpha Protocol (still one of the most underrated RPGs this gen)

Total War games, most recently Shogun 2

House Of The Dead Overkill

Football Manager

Yeah they've released some shite Sonic games (and even a few of them in recent years have been ok) and some dodgy DC ports but they've been involved with a lot more good games than you'd think in recent years.

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And don't forget the amazing Renegade Ops on XBLA :)

Yeah that too along with other recent games such as Virtua Tennis 4.

Thing is I wouldn't blame SuperCat or anyone else for thinking that about them because for some reason Sega just have this odd 'vibe' I suppose you could say about them. It's like they don't even try when it comes to promoting their games and letting people know about them. It's almost as if at times they go 'aye take a look at that if you want' and just casually walk off when they've got some great games they should be doing more to push. Boggles my mind at times.

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Yeah that too along with other recent games such as Virtua Tennis 4.

Thing is I wouldn't blame SuperCat or anyone else for thinking that about them because for some reason Sega just have this odd 'vibe' I suppose you could say about them. It's like they don't even try when it comes to promoting their games and letting people know about them. It's almost as if at times they go 'aye take a look at that if you want' and just casually walk off when they've got some great games they should be doing more to push. Boggles my mind at times.

Yeah, I think it's because they've kinda lost their sense of identity. I don't know about other people, but when I think of Sega, I think of fast-paced arcadey titles with anachronistic music and great gameplay under blue skies. I don't think of Total War or Aliens Vs Predator - despite really liking the Total War series.

I'm unsure what it is. When I think of Konami, or SquareEnix, or Actiblizzard, or Codemasters, or EA, or Ubisoft - I kinda perceive a sense of that developer that goes beyond just their name and logo. However, when I think of THQ and Sega these days that immediate feeling is more muddled and less clear - for Sega, this has been the case since a while after they went 3rd party.

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I think Sega has lost identity a bit as a developer, but as a publisher they've signed up games that are exactly what I'd expect the olde Sega to be publishing. And by old I mean 1980's Sega who released those really gritty action titles, always a little rough around the edges.

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Surely they are in a better state than Konami - what a dump that company is.

"hey guys lets release our HD collection the same week as the handheld edition! what you mean no sales"

"lets make our games a really low print run and incredibly hard to find!"

"silent hill 2 and 3 for mobile phone? can't you use a screen widening program so we can flog it as a HD collection for modern consoles?"

"lets make a rare steelbook edition for our game - but lets save money by just putting some stickers on it instead"

"advertising?"

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Ign UK say:

Earlier today, four franchises were overtly announced as being safe: Sonic, Football Manager, Total War, and Aliens. Our sources have revealed that any currently announced game that isn't included on that list will not be published by SEGA, leaving a decent amount of the publisher's upcoming publishing roster in jeopardy.

No vf :/

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Sony better step up to the plate for Yakuza publishing duties.

On a slightly different note, Sega just registered some new trademarks: Galaxy Conquest, Ryu ga Gotuka Kizuna and Valkyria Duel. No idea about the first one but the second on the list is a social smartphone game. If the last one turns out to be a Valkyria Chronicles Facebook game, that's when the company is officially dead. At least to me.

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It's a bit weird because basically Sega UK is doing well and still growing. It's a remarkable shift. I reckon if they want to whack out a few extra titles, then companies like Sumo Digital are there to take on contracts too.

I'm surprised that they've taken such an intelligent approach rather than went defensive focusing on protecting their internal Japan dev.

Obviously it's a shame that layoffs will happen but I admire that they appear to have thought it through. I think this will make Sega stronger than ever. It won't be the same company but that company just wouldn't be able to survive.

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