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Sega announces extraordinary loss of 7.1 bn yen, layoffs, restructures, cancels games

SMT

this show is not Breaking Bad why is it not Breaking Bad? it should be Breaking Bad dammit Breaking Bad
Publishers generally own the IPs to the games they publish, because they're generally the financiers of their development. But you probably already knew that.

Actually, I didn't know that, I thought some other type of agreement had been met between Platinum and SEGA. :/
 

IpsoFacto

Member
The other irksome thing is that SEGA might be shift into complete Activision mode.

The franchises they mention are likely going to stay with SEGA, namely the Aliens franchise, that's their major meal ticket right now.

We're still a long way till E3 so I can only assume that their cancellations will be affected by their current crop of titles.

There are at least three titles that might get the axe. Or likely sold off to another publisher:

.Number one: London 2012 Olympics (The other titles never sold much, but it's likely that they got their money back, but like I say Aliens is the major meal ticket).
.Number Two: Rhytm Thief and The Emperor's Treasure (Disgraced Sonic Team alumini Shun Nakamura will likely see his title get axed due to the 3DS's slow sales performance and Nintendo's general non-chalant attitude towards third party software on their consoles).
.Number Three: Anarchy Reigns (Good GOD, I hope not. But it seems highly likely).
 

BosSin

Member
Here's an idea, Sega could go on to develop bayonetta 2, but replace the skins with sonic related stuff. So all the gameplay will still be there, just that it's title will be "Sonic the Bayo Netta 2".





The main character could be an over-sexualised version of amy rose.
 

DJIzana

Member
I swear... if they eventually go under from the gaming industry, then my favorites will only include whatever is left of Square Enix (and to be honest, that's a really crappy thing to rely on at the current moment) & Nintendo. At least, when it comes to console side of things. =/
 

IpsoFacto

Member
Fuck, the industry is collapsing isn't it?

Midway went backrupt.
Atari is barely, but barely hanging in there.
THQ is bleeding pretty badly.
Capcom is milking Street Fighter and Resident Evil to the nth degree.
SquareEnix and Namco Bandai are struggling.
SEGA downsizing to keep it itself afloat.


Electronic Arts, Take Two and Activision are the only "safe" 3rd Party companies out here right now.
 

Odrion

Banned
It's going to get a lot worse before it gets better. Just hop on over and see what publishers want out of next gen.
Don't console launches have the reputation for killing companies? For every new IP it can spawn, you have a company that isn't in the healthiest condition unable to profit from the transitioning customer base.
 
Midway went backrupt.
Atari is barely, but barely hanging in there.
THQ is bleeding pretty badly.
Capcom is milking Street Fighter and Resident Evil to the nth degree.
SquareEnix and Namco Bandai are struggling.
SEGA downsizing to keep it itself afloat.


Electronic Arts, Take Two and Activision are the only "safe" 3rd Party companies out here right now.

And most of those companies have turned out mostly shit lately. Isn't that funny.
 

Brazil

Living in the shadow of Amaz
Midway went backrupt.
Atari is barely, but barely hanging in there.
THQ is bleeding pretty badly.
Capcom is milking Street Fighter and Resident Evil to the nth degree.
SquareEnix and Namco Bandai are struggling.
SEGA downsizing to keep it itself afloat.


Electronic Arts, Take Two and Activision are the only "safe" 3rd Party companies out here right now.

Namco Bandai isn't struggling.
 

Odrion

Banned
I'm happy that hundreds of people will lose their jobs because they're NEGLECTING MY WISHES. NnggggGGGHHhhggggghhhh
 
Midway went backrupt.
Atari is barely, but barely hanging in there.
THQ is bleeding pretty badly.
Capcom is milking Street Fighter and Resident Evil to the nth degree.
SquareEnix and Namco Bandai are struggling.
SEGA downsizing to keep it itself afloat.


Electronic Arts, Take Two and Activision are the only "safe" 3rd Party companies out here right now.

Valve, Bethesda, Namco, Ubisoft, Atlus, Konami all say hello.
 

Combichristoffersen

Combovers don't work when there is no hair
They're actually doing fine, financially. I'm aware that they don't have "ecred" right now, but their house is in order.

Then why didn't they hire someone competent to do the SH collection, and give Vatra a decent budget for Downpour *cries* KONAAAAAAAAAAAMIIIIIIIIIIIIII!
 

Opiate

Member
Valve, Bethesda, Namco, Ubisoft, Atlus, Konami all say hello.

Atlus is tiny, Valve is only marginally focused on traditional console development, and Ubisoft lost significant money the last two years (although they're likely to make money this year, thanks to Just Dance). Konami and Namco are doing well, though, as is ActivisionBlizzard. EA has, at the very least, stopped losing enormous quantities of money, even if they aren't making very much, either.

Generally, I'd describe the current console environment as "treading water" overall. The publishers who focused primarily on home consoles aren't bleeding terribly at this point (or rather, some are bleeding, but you have at least as many success stories to compensate for that), but they aren't growing anymore in aggregate. Console development is, at the very least, stagnant.

Most of the growth we're seeing is outside the HD Console realm. Portables have given rise to large companies like Level 5 and provided very signiifcant profit margins for companies like Ubisoft and SquareEnixEidos; PC is providing explosive growth to companies like Valve, Zynga, and Riot; iOS has given rise to companies like Rovio and Gameloft.

It isn't so much that console development is collapsing in to nothingness, in other words. It's that it's standing still while everything else is sprinting forward.
 
LOL! Maybe from a financial standpoint, but they're killing all their franchises.

They appear to be profitable, have a fairly diverse portfolio of console, mobile, and casino gaming machines, and aren't launching a constant stream of high budget low sales properties.

Not sure here they are lol-worthy.
 

shaowebb

Member
This really sucks. I wish Sega could turn a profit on the rest of their IP's. Its great Sonic is good again, but seeing this I really worry about Platinum Games and a few other things they've been supporting.
 

Steaks

Member
I hope not. Barely bothering with QA is what got us Shadow and 2K6. I sincerely hope Sega doesn't seriously want to go back to that.

A lot of people blame QA for bad games when in reality a lot of the issue is production pipelines, too tight budgets/bad scope and people making terrible judgment calls. So yeah.
 

Opiate

Member
Then why didn't they hire someone competent to do the SH collection, and give Vatra a decent budget for Downpour *cries* KONAAAAAAAAAAAMIIIIIIIIIIIIII!

One might actually argue that Konami has been able to turn a profit specifically because they've moved their focus away from these types of games and towards mobile platforms, casino game machines, and fitness technologies to go with their gyms.

Cheap outsourcing is a consequence of their focus being elsewhere.
 

Combichristoffersen

Combovers don't work when there is no hair
One might actually argue that Konami has been able to turn a profit specifically because they've moved their focus away from these types of games and towards mobile platforms, casino game machines, and fitness technologies to go with their gyms.

Cheap outsourcing is a consequence of their focus being elsewhere.

Your tag is all too fitting.

I wish they'd just sell off the Silent Hill IP to someone who actually cares about it.
 

Koralsky

Member
Sadly, I think SEGA will die like medium size publisher in about a year.

On the other hand, the strongest sales SEGA had receive these days are from their digital only titles.

This means they'll put more effort on digital titles for psn/xbla/iOS/android/windows phone and maybe we are going to receive two or three high budget retail games from Aliens, Total War, Sonic and Football Manager per year.

That's, until SEGA become exclusively digital publisher and completely die after three or four year.

EA will buy CA and SI. Some Japanese publisher will buy Sonic franchise. Maybe Sony will buy Yakuza franchise (and the team) for their home market.

And that's it :/
 

Sqorgar

Banned
Honestly, I think the best thing for gamers is that the US/European branches of Sega die off completely. When that happens, Sega will have no choice but to license out their games, and we'll get games like Valkyria Chronicle 3, 7th Dragon, the PSP Yakuza games, Shining Blade, Phantasy Star Portable 2 Infinity, and so on instead of these games being passed over so that Sega can fund the development of Iron Man 2 and Thor movie tie-ins.
 

rvy

Banned
They appear to be profitable, have a fairly diverse portfolio of console, mobile, and casino gaming machines, and aren't launching a constant stream of high budget low sales properties.

Not sure here they are lol-worthy.

They destroyed the best football franchise in gaming, one of the best horror series and their only saving grace is Metal Gear games. They are pretty lol-worthy, IMO.
 

BosSin

Member
Sadly, I think SEGA will die like medium size publisher in about a year.

As mentioned previously this all relies on Sammy. In the future I see them making 3 possible decisions

- Dissolve SEGA, sell all its IPs to other companies, thus cutting off the head of its financial problems
- Absorb SEGA, thus taking all their IPs and making game-themed pachinko machines (or by some stroke of madness, enter the games publishing scene)
- Keep SEGA-Sammy partnership, and by some stroke of luck the financial problems subside. Worst case here is that they both go under and someone else purchases Sega-Sammy
 

SegaManAU

Member
If Final Showdown doesn't do well, then yes. That's what the U.S. producer, Frank, told me and some of VFDC members at Final Round this year.

I hope this isn't true...because aren't they almost ready to reveal some new Arcade hardware along with VF6?

This means I will now double dip on games both on PS3 and 360.
 
I guess Binary Domain and Yakuza are probably safe now that Nagoshi is a big honcho?

i really am hoping for this. sales in japan have apparently been "good", and again, good enough for localization in the US. this news of course doesn't bode well for the latter, though.

Platinum doesnt need Sega. I dont know why Sega doesnt just close its doors already. people would care for about 1 week.

your posts are absolute garbage. I'm serious, i don't think ive seen a single one of worth.

Sega currently has a war with me on their forums. They have an issue with me because I represent an agenda in favor of their best economic interests, but because my take is extreme and counter conventional gaming assumptions that rub most gamers the wrong way they have declared me a problem poster on their forums. This failure totally vindicates my view and their desperate need to alter their approach.

see, this is doing it right - this post has the decency to be hilarious, while wasting the time of everyone involved.

so basically you want sega to die faster

why you wanna be that guy, gravijers


They have $2 billion in cash, only $720 million in debt, and only lost $96 million this year, most of which was a writedown.

again, the big picture here is reassuring.
a stronger DD model on consoles cant come quick enough for some of their niche projects, though.

Yakuza is life. Kickstarter this shit, Sega.

not what it's for, but i can't deny i'd go in if it was started!

Good. Sega deserves this for not making a proper Phantasy Star sequel. You know, something that isn't that online abomination.

this kind've mentality is really the only leftover i can see towards the generic sega-hate...the dissonance created from being angry at a company for not being what it was 10-15 years ago. i mean, how many people you think from PS IV are still on staff? why do you want something that a) doesn't play to their current strengths at all, when b) F2P PSO 2 looks to be one of their biggest money-makers in the future? As if the ending to IV wasn't enough.
 

cj_iwakura

Member
You could've localized Hatsune Miku, but nooooo.


Sega's been dead since the Dreamcast died, people. They've just been delaying the inevitable.
 

Pagusas

Elden Member
Remember when Sega was all like "Yeah man, we're going to be the #1 third party EVAAAA! Totally going to happen, just watch. Are you watching! Keeping watching!"


Yep, good ol' Sega, you went full retard.
 
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