Sega cuts 560 jobs, 12 games could suffer

Sega hasn't responded swiftly enough to turbulent business conditions, the company says, so they're reducing "fixed cost" and axing upwards of 560 jobs.

Sega cuts 560 jobs, 12 games could suffer

Whip that smile off your face, Sonic!

PC WORLD -- Company revenues were reportedly down across the board, resulting in a revised fiscal forecast and losses of over $235 million when things wrap next month.

Before Sega gets to what it's calling "voluntary redundancies across [their] workforce," they plan to close 110 of their least profitable amusement facilities, aka "arcades." After that, they'll dip heavily into their 3,000-plus employee pool and slash nearly 20 percent.

Voluntary reductions? Probably severance packages, though in this climate, that's no doubt cold comfort to the one-fifth soon to be unemployed.

Commensurate with those cuts, Sega's shrinking R&D by 20 points and consolidating its titles in development.No word on which titles those cuts could affect, but games currently in development include:

The House of the Dead: OVERKILL (Wii)
Sega Mega Drive Ultimate Collection (PS3, 360)
Empire: Total War (PC)
MadWorld (Wii)
OutRun Online Arcade (360, PS3)
Sonic and the Black Knight (Wii)
BLEACH: Dark Souls (DS)
Stormrise (PS3, PC, 360)
Phantasy Star Portable (PSP)
Virtual Tennis 2009 (PS3, PC, 360, Wii)
The Conduit (Wii)
Let's Tap (Wii)

Comments [16]

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ChokaDaChicken

sucks for Sega, maybe they should've put out quality games other than pushing poop

goldberg_evan

Get rid of all the BS Sonic games Sega has been releasing recently and make a decent one. Hell, bring back remastered versions of the 2D classics on the Genesis and sell them for $20 a pop, and I'm sure they'll make money then.

kayvee

i doubt madworld will be cut since its pretty much done.

hopefully they do not cut the conduit since they just picked that one up.

eday_2010

I doubt that MadWorld, Sonic and the Black Knight and Sega Genesis Ultimate Collection will be affected as they are pretty much done. There are some interesting games in that list, so hopefully not many of them are affected. And hopefully Phantasy Star 0 for the DS isn't affected, since that is only coming out this fall. I am looking forward to that one a lot.

duffmanth

Can't say that this story surprises me. Between the sh*tty economy and the sh*tty games that Sega has been putting out lately, with a few exceptions, this was bound to happen.

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