gaming Sega canceling games, restructuring business

[Muhammad Farrukh]

Sega canceling games, restructuring business

Company canning unnamed games as part of shift to become smaller and strengthen digital content; full-year financial outlook cut in half.

Sega is going through tough times. This morning, the Japanese game company announced it was halving its financial forecast for the fiscal year, canceling games, and restructuring due to the "rapid change" in the game market.

Part of the process is canceling upcoming titles. Sega did not specify which games have been axed, and as of press time, Sega had not responded to GameSpot's request for comment.

Sega made clear that forthcoming games from the Sonic the Hedgehog, Football Manager, Total War, and Aliens franchises have not been canceled.

As a result of the changes and market conditions, Sega is predicting an extraordinary loss of ?7.1 billion ($86.4 million) for the year ending tomorrow, March 31, 2012, with ?4.9 billion ($59.7 million) directly related to the restructuring.

Additionally, Sega said it plans to streamline its organization in the United States and Europe. The company said this move will better position the firm for "sustained profitability." Sega did not say if jobs were cut as a result. Further, Sega said it plans to increase its involvement in the digital market, but did not map out anything specific.

For its fiscal year, Sega now expects revenue to come in at ?394 billion ($4.8 billion), down from the ?440 billion ($5.4 billion) it expected previously. Additionally, profits are expected to dip nearly 50 percent, from an originally estimated ?38 billion ($462.6 million) to ?20 billion ($243.5 million).

[Skyfrog]

I have a feeling they won't be around much longer.

[Doli]

Bring back Segata Sanshiro

[Reacon]

Make Shenmue 3.

Suddenly, loads of capital.

[Rudy]

Oh Sega what happened? :/

[DirtyLarry Veteran]

Oh Sega what happened? :/

This.

Very, very fond memories of Sega overall. Dreamcast to this day was still one of the more exciting consoles I ever owned. It really IMO introduced what a home console could really be, and that was just incredibly powerful and kick ass.

[-T- Member]

I've always been a Sega man. I've owned every console they released. It would be tragic if they were gone. I'd always harbored hope they'd make hardware again.

As long as FM survives I'm sure its the best decision for the company to restructure

[Doli]

Soul Calibur for the Dreamcast was the first "Wow" arcade experience from a home console for me.

[Salutary7]

They should just re-release Michael Jackson's Moonwalker :laugh:

[S00N3R FR3AK]

I'm not to worried about Total War, it won't go without a publisher.

[Chaos at Dawn]

Sega why no Panzer Dragoon or Panzer Dragoon Saga? How bout a new Alex Kidd? :cry:

[sagum]

Sega made clear that forthcoming games from the Sonic the Hedgehog, Football Manager, Total War, and Aliens franchises have not been canceled.

I think that pretty much sums it up. They're not actually willing to change, they're just trying to cut costs and create more profit. Unfortuanatly, people are starting to get sick of the same old game names being re-hashed over and over again. While they might prove to be consistant earners, they're not providing any reason for people to buy into the idea sega are still great developers and publishers, rather old hats reworking existing content.

Sega have made some really nice hardware and games in the past. Its a shame they can't refocus again and join up with the likes of valve for that steam box... :)

[compl3x]

I think that pretty much sums it up. They're not actually willing to change, they're just trying to cut costs and create more profit. Unfortunately, people are starting to get sick of the same old game names being re-hashed over and over again. While they might prove to be consistent earners, they're not providing any reason for people to buy into the idea Sega are still great developers and publishers, rather old hats reworking existing content.

I think this pretty much hits the mark. Times have changed and they haven't really changed with them.

Sega have made some really nice hardware and games in the past. Its a shame they can't refocus again and join up with the likes of valve for that steam box... :)

lol. Could you imagine? Would certainly be interesting.

[remixedcat]

After Sega released Sonic The Hedgehog for the 360 it was downhill from there.

[Aergan]

After Sega released Sonic The Hedgehog for the 360 it was downhill from there.

Sonic Adventure was the start of the death sentence really.

[joep1984]

Oh good, Football Manager won't be canceled.

I was SOOOO worried.

[The Teej]

Sonic Adventure was the start of the death sentence really.

Really? SA 1/2 were good games - it's the 3D games that came AFTER those which started the death sentence. Putting it simply, it's the lack of direction for Sega's champion mascot was a massive coffin driver. Then there out-of-sequence console releases was a bad move (really Sega? Releasing a 6th gen console 2/3rds of the way through the 5th generation? umadbro?). It's just been bad management choices after bad management choices.

Quite frankly, as a couple of other posters have said, they should bring back some of their older franchises and give them a shot in the digital space. A new Alex Kidd, Panzer Dragoon or Shenmue title could easily be million sellers as long as it's done right.

[Azusa]

Hate to tell you guys this but Sega may only be gone from the Gaming industry cause they seem to be doing well in the 2nd market which is mostly merchandising you know like Figures and the like.

[SiCKX]

After Sega released Sonic The Hedgehog for the 360 it was downhill from there.

Everything they released after Sega Mega Drive (Genesis) was a failure. Can't wait till they close shop, really. The 32X, Sega-CD, Dreamcast, newer games for 360/PS3/Wii, everything was mediocre aside from Sonic 4/Sonic Colors/Sonic Generations. They are pretty much the most stupid company that struggles to exist still.

Nothing they do now can compare to worldwide successful titles such as OutRun, Hang-On, Sonic, Altered Beast and whatever they had in the glory days. Having Sega around is like having your comatose granpa hooked on life support. If you were a businessman you'd see things different.

[Captain Caveman]

Hate to tell you guys this but Sega may only be gone from the Gaming industry cause they seem to be doing well in the 2nd market which is mostly merchandising you know like Figures and the like.

Yep.. they make good money in the Slot Machine business..

Williams (pinball co /arcade - robotron/joust/sinister/etc) went the same way and are huge in slot business and make a ton!

[+Audioboxer Subscriber²]

Hope Yakuza translating survives :(

[remixedcat]

Sonic Adventure was the start of the death sentence really.

Some people really liked it though....the Chaos were fun to raise for people.

[1WayJonny]

You guys screwed us with Shenmue already, you take away Yakuza I will be really ****ed!

[Vandalsquad]

Everything they released after Sega Mega Drive (Genesis) was a failure. Can't wait till they close shop, really. The 32X, Sega-CD, Dreamcast, newer games for 360/PS3/Wii, everything was mediocre aside from Sonic 4/Sonic Colors/Sonic Generations. They are pretty much the most stupid company that struggles to exist still.

Nothing they do now can compare to worldwide successful titles such as OutRun, Hang-On, Sonic, Altered Beast and whatever they had in the glory days. Having Sega around is like having your comatose granpa hooked on life support. If you were a businessman you'd see things different.

Most of Segas profits don't come from the gaming we know.. There product revenue comes from pachinko machines and online gambling but mostly pachinko Segas profit has been up and up for years on end. I'm sure the problems Japan are facing at the moment is hurting them a lot since pachinko machines are only really big in Japan. When an economey falls apart the businesses making there profit off that economey also lose revenue. If you where a businessman you would see this :rofl:

Sega are damned if they do or damned if they don't in the console industry, Release a 3D sonic even if its a good game it bombs because people complain its not 'classic' sonic. Then release a classic sonic 2D game which is great but bombs sales wise because people honestly don't want to play a 2D scroller as much as they used to 20 years ago.

Sega still has great ip's and great games. They won't be going any where in the console industry for awhile. Even if they pull out of console gaming the company won't colapse.

[way2quik]

Make Shenmue 3.

Suddenly, loads of capital.

All the rumours of a Shenmue HD and Shenmue 2 HD release for the XBOX Live and PSN are slowly fading. Sega could at least release those two games as I'm sure there's a high demand from users hoping for another Shenmue game.