Sega posting losses and mass layoffs

#1

Anybody else read the article going around regarding this? Sega lost about $86mill US and are laying off staff along with halting or reconsidering releasing anything that is not Sonic, Football Manager, Total War, and Aliens. It breaks my heart to see the company that gave me so much joy as a child ending up like this. If any of you win the over 500mil jackpot here in the states, now would be a good time to buy the rights to Panzer Dragoon, Shining Force, and Phantasy Star (among other franchises).

#2

The Sega we knew died a long time ago (IMO), but this isn’t surprising.

The entire economy is starting to unravel now because math does not lie (no one has any money because the only part of the world that actually produces anything is Asia). As people have less money they’ll stick to free to play games or trusted brands only.

#3

This is Game Over for Sega in the Western market it seems: http://games.ign.com/articles/122/1222024p1.html.

#4

It seems that the industry as a whole has been suffering recently.

For example, Sony just shutdown the studio that made SOCOM:
kotaku.com/5897953/sony-confirms … ags-studio

There’s also the trouble with GAME stores:
gamespot.com/news/game-rescu … nt-6369275

I hope Sega continues to have the opportunity to make innovate games. Even if these are only downloadable XBLA/PSN/Steam titles, only having the more stable franchises as boxed retail games.

Hopefully the Jet Set Radio port will still be released, along with Phantasy Star Online 2.

#5

Blizzard are posting profits but they were very cheap with the current WoW expansion and the quality suffered for it.

IMO, gaming is shifting more and more into the realm of social media. League of Legends is a good example of a free game that is hugely popular.

But the economy is terrible still. The UK has gone into recession again. Lol. No one saw that coming.

#6

Shenmue III and PDSII here we come!!

#7

[quote=“Geoffrey Duke”]Blizzard are posting profits but they were very cheap with the current WoW expansion and the quality suffered for it.

IMO, gaming is shifting more and more into the realm of social media. League of Legends is a good example of a free game that is hugely popular.

But the economy is terrible still. The UK has gone into recession again. Lol. No one saw that coming.[/quote]

I think gaming is only going that way because publishers and developers are pushing us gamers in that direction. They keep nickel and diming us with all this downloadable content that should be free. Game prices are artificially high imho also. If games were still released at $50 dollars a pop, I honestly think they would sell a ton more games. Hardware costs keep going up. Add ons have returned in the form of Kinect driving prices up further. I think the success that Nintendo has had with the 3DS after the price drop is a perfect example of market economics. I think general gamers, even the hardcore ones, have a hard time purchasing a system much over $200 US at this point in time. The Vita tried to do too much and is failing because of that. Did it seriously need to have things like the back touch panel that only add cost to the unit. All the rumors of these new systems with DRM blocking used games and all this added horsepower are missing the point of a console. They need to release a standard system with just the basics at a $200-$250 price point that outperforms the previous generation, has free online play(which will drive higher content sales imho), and maybe integrates a Steam like service that is free but provides content for sale. Blocking used games will only hurt their user base.

I think Sega’s problem is that they just were not releasing quality games. I think after the DC died and they started letting go of talent, they just don’t have the ability to make the same quality games they used too. PD: Orta was about the last Sega game that I purchased and still play. The only other Sega games I have bought have been the Genesis compilations for PC and 360. They are sitting on goldmine franchises that they don’t have the talent to develop into new games.

#8

Sega could have made quality games only and Sega could have kept its identity, but the business model they embraced wouldn’t let them.

When you are forced into constant growth, you have to invest less and less and less into something in order to maximize profits. Instead of focusing on a niche, Sega tried to emulate Americans, and failed. Everyone is like this, but most people have enough sense to build on their strengths. The last COD game, for example, wasn’t as good as the ones before it, but it sold extremely well anyway.

Now that’s good business, but it’s bad for gaming.

You have to remember that these CEOs and shareholders etc really have no conscience and no soul. All that matters to them is making money.

Now I know that it is anecdotal of me, but from my experience, most “gamers” tend to be pretty casual. They’d only commit to something if they weren’t given a choice and if it was worth it, but during times like these real life is far more important and they end up bringing reality to gaming. Businesses know this and exploit it. I watched these people ruin World of Warcraft, but hey, I accept it because that’s life.

I play games to escape reality, not be reminded of it. In the end what will happen is all the real gamers will end up concentrating somewhere and have a big enough voice to make a difference. Otherwise gaming is basically playing Tetris on your mobile, and nothing more.

I could go on and on about how ridiculous the economy is as well. It’s almost as if no one wants to actually fix anything. It’s like they are blind to the bigger picture and think the party will go on forever.

IMO, if Sega could make something that sold well in China or India, they’d be swimming in money, because those are the only places that actually have any at the moment.

#9

It be nice if you took the time to read SEGA profits . SEGA are going to post profits , not a loss - Thanks to the Arcade sector , the consumer Teams have posted a loss,but overall SEGA is going to post a profit

#10

[quote=“Geoffrey Duke”]Blizzard are posting profits but they were very cheap with the current WoW expansion and the quality suffered for it.

IMO, gaming is shifting more and more into the realm of social media. League of Legends is a good example of a free game that is hugely popular.

But the economy is terrible still. The UK has gone into recession again. Lol. No one saw that coming.[/quote]

The UK isn’t in recession you need 2 quarters of negative growth for that to happen and its has’t just yet

SEGA have made quality games lately(Sonic Gen, V T 4) and let me tell you that Binary Domain is the best game SEGA made since Orta and with graphics and gameplay to match . Not only is the game way better than GOW III but it’s AI is incredible for Japanese developed game (its light years ahead of other Japanese games) and I have no idea where BD tech has come from but blow me down if it isn’t one of the best looking games I have seen this generation with incredible shaders effects and stunning animation

This is a classic old SEGA game. Where SEGA Takes an established genre and SEGA put its own spin on it like SEGA did with Panzer, Streets of Rage, Space Channel 5 ect (the mixing of the Termintor feel along with the disembodiment from Ninja Gaiden II is inspired) All dressed up with a stunning next gen engine . I’m amazed at how good this game is , really … The sad part is , the PR and marketing push is also classic SEGA ie Piss poor and lacking

Such as shame anyone who’s likes Gears, or Films like the Terminantor need this gen . Binary Domain is sheer class

#11

You don’t want to accept the fact that Sega could have done a lot better. It only really has an identity in Japan. It hasn’t had much success outside of it when compared to other publishers.

Now they are forced to be efficient. Assuming they even survive.

1 million 18-25 year olds out of work in the UK. The west isn’t recovering. The west is just merging into a superstate.

Britain In Recession Again, Forecasters Say

This is like predicting that 2+2=4. I don’t know why you have to wait to see the result before you will believe it.

#12

[quote=“Geoffrey Duke”]You don’t want to accept the fact that Sega could have done a lot better. It only really has an identity in Japan. It hasn’t had much success outside of it when compared to other publishers.

[/quote]

SEGA aren’t posting losses ,they’ll post another set of profits in fact of over 100 Million Duke
And you keep going on about Actvision/Blizzard Entertainment, Didn’t Blizzard Entertainment layoff 600 staff just the other month ?
Layoff staff and restructuring is simply what many corps even the Huge ones like EA, Activsion have done or are doing SEGA is no different .

Like that’s anything new, even with an economy growing over 6% we still had over a million British kids on the dole I think we can thank Labour total cock up on the Eastern EU Accession for that . And even with 10 years of Boom we still had over 3 million people of working age on the sick or the dole . UK having millions on the sick or the dole is nothing new at all, it all started in the 80’s with the closing of Pits

No its just called the Facts . And we aren’t officially in recession just yet

#13

[quote=“Team Andromeda”]SEGA aren’t posting losses ,they’ll post another set of profits in fact of over 100 Million Duke
And you keep going on about Actvision/Blizzard Entertainment, Didn’t Blizzard Entertainment layoff 600 staff just the other month ?
Layoff staff and restructuring is simply what many corps even the Huge ones like EA, Activsion have done or are doing SEGA is no different .
[/quote]

Blizz are growing their value and making profits despite the recession and people leaning more and more towards free to play games. Sega are shrinking. They already shrunk to nothing after being a market leader.

The facts speak for themselves here.

You don’t seem to understand what is actually happening. The UK isn’t a self-sufficient country and has created a lost generation as a result. When 3/4 jobs go to immigrants simply because it’s more efficient, it cannot last.

The English are lions feeding on their young, and I won’t be a part of it. You can turn a blind eye if you want. These are young people. They have no future. And people are telling them to get jobs when there are none because they’ve all been outsourced.

Did you even read the article? According to the prediction we are.

But we can wait and see if you want. We can wait and see if 2+2 really does = 4.

#14

The facts are SEGA is going to post a profit of over $100 Million . Like all the Corps SEGA is down sizing in certain markets. With SEGA it’s sadly the US arm paying the price , while SEGA Europe and Japan keep hold of their In-House divisions.

The real reason why the immigrants are getting the Jobs over the UK worker and that’s they’ll work on the cheap . When all is said and done , that’s the Major reason unlike the UK worker Immigrants are not really interested in days off’s and Pay rises and Holidays, they just want to work and no interested in days off , or silly things like that

Sadly we’ve also got a lot of people of working age who’ve are used to the benefits and have no intention of looking for work or working, that is another huge problem for this country…

I’m sure you like most of us , know people that’s never worked yet have 4 kids or so and are so very happy to have the state pay for their kids their council tax and house for them, while they do nothing all day

Predictions aren’t facts I think you’ll find :wink:

#15

In other words, Sega is shrinking.

Why not admit it? Sega is almost nothing outside Japan.

It’s easier to hire them than train new people. That’s why.

And yeah, people like to live their lives, not spend their whole life working.

[quote=“Team Andromeda”]Sadly we’ve also got a lot of people of working age who’ve are used to the benefits and have no intention of looking for work or working, that is another huge problem for this country…

I’m sure you like most of us , know people that’s never worked yet have 4 kids or so and are so very happy to have the state pay for their kids their council tax and house for them, while they do nothing all day [/quote]

This is a minority of people. You can’t blame them for the fact that this country is a service sector economy where businesses set themselves up here only to invest their money abroad.

The math doesn’t lie.

This is like trapping someone somewhere where there is no oxygen, then blaming them for suffocating.

You just want to win an argument TA. But according to those analysts we are back in recession.

You can wait and see if you want, but I see no real growth of consequence. Jobs don’t grow on trees.

Whereas in China and India, if those places westernize properly, then the middle classes there will rise to the hundreds of millions, because they actually make things and have something to sell.

#16

Yes, but so is Activsion if you think like that or don’t closing down Luxoflux Studios, Neversoft , Underground Development, Bizarre Creations and laying off hundreds of staff in FreeStyle Games, Radical Entertainment , Blizzard Entertainment count for nothing ?

Why no admit that a lot of companies are downsizing, even SONY have just closed the likes of Zipper Interactive

Bar Sonic, Football Manager, Total War I would be inclined to agree with you. There again other than COD or WOW what’s Actvision got

That depends on the Job, but for most Factory work -where you’ll need to be trained on the premises in most cases, it’s a bullcrap excuse and do we really extra training to be a bus/taxi driver or long distance drivers ?
That’s the trouble now, immigration isnt just taking Jobs e British don’t want to do (like fruit picking) its talking jobs the British have done for years

Well that’s the trouble . British workers like their weekends off, immigrants tend not too - They’ll work all the hours GOD sends

  • I’m sorry the work shy is one of the reasons we’re in a mess . With out our massive wealthfare bill we’ll be a rather low tax economy
    But far too many have played the system. Being out of work or ill through no fault of your own is one thing.Not working while having 4 or more kids , or pretending to have a illness stopping from you working (when there’s nothing wrong with you ) is quite another.

And its always the ones that’s never worked ,never paid in to the system that know their full rights get all the benefits under the sun and makes full use of the NHS system . While us silly buggers work and pay for it and get little from the system in return **

  • Rant Mode

** Rant Mode off

#17

[quote=“Team Andromeda”]Yes…

Why no admit that a lot of companies are downsizing, even SONY have just closed the likes of Zipper Interactive [/quote]

The economy sucks and companies are learning how to do more with less, but some are still successful. All that matters to them is profits, not staff.

Starcraft as well which is huge in Korea.

They have money to invest and brand recognition. Activision, as much as I hate what they have done to gaming, is a giant compared to Sega.

[quote=“Team Andromeda”]That depends on the Job, but for most Factory work -where you’ll need to be trained on the premises in most cases, it’s a bullcrap excuse and do we really extra training to be a bus/taxi driver or long distance drivers ?
That’s the trouble now, immigration it’s just taking Jobs British don’t want to do (like fruit picking) its talking jobs the British have done for years [/quote]

The point still stands. 3/4 jobs go to immigrants. 1 million 18-25 year olds have no future. That can’t be blamed only on lack of personal responsibility.

The economy is simply terrible, and thanks to the internet, no one can ignore it anymore.

That’s just a convenient excuse for a failing system. The UK is spending nearly 10 billion on the Olympics. The Tories claim that cuts are necessary then spend billions bombing Libya. We still send aid overseas when we can’t afford it.

There are no jobs. Most of the IT sector was outsourced to India as well.

No one can blame the unemployed for that.

[quote=“Team Andromeda”]With out our massive wealthfare bill we’ll be a rather low tax economy
But far too many have played the system. Being out of work or ill through no fault of your own is one thing.Not working while having 4 or more kids , or pretending to have a illness stopping from you working (when there’s nothing wrong with you ) is quite another.

And its always the ones that’s never worked ,never paid in to the system that know their full rights get all the benefits under the sun and makes full use of the NHS system . While us silly buggers work and pay for it and get little from the system in return **

  • Rant Mode

** Rant Mode off[/quote]

The UK only has itself to blame for wanting cheap labour.

All people are doing now is adapting to a dying system.

#18

I think the high price of games is more to blame and cost of developing games myself . If want to talk Profit SEGA is going to post its 3rd straight set of profits but that doesn’t always show the true picture

3 Ip’s . That’s not much to what the likes of Ubisoft, Take 2 could boast. And I’ll have to remind you again SEGA never been a giant in terms of games sales (bar Sonic) it’s always been the underdog really

You’ve answered your own point. Having 70% of all new Jobs in the UK go in immigrants is a huge issues, that’s why so many young can’t get a job - It may explain why Germany opted out of Accession .
Nothing to do with Skills and everything to do with cheap labour -Something which I would have thought you of all people would have been against

Try more like ?10 Billion ?30 billion if it all goes tits up and we get a massive attack , Where on earth you get ?100 Billion I really do not know . Anyway… You want to know what the UK spends each year on welfare ? Try something like ?209 Billion each year

That’s where most of the UK money goes

Lets not kid our self’s that out of the 3 million on the Sick or the millions on the dole. They’re aren’t a couple of million that are playing and abusing the system . No way in a country like ours could they be over 3 million people of working age not fit for any sort of work .

There are Jobs (very hard to get there are I’ll not argue ) but the UK IT sector if one of few that hasn’t been hit hard . Hell Conduit are going to create 600 new Jobs in Cardiff alone this year , they’re not all going to India

Oh I think we can partly blame the EU in this after all any UK government is powerless to stop EU citizens coming in and undercutting the UK workforce .

#19

Sega went from a market leader to something slightly better than Atari. That really says a lot.

Activision/Blizzard and even Konami and Square are more relevant outside Japan than Sega is. They should focus on Japan, but let’s not pretend that Sega is still relevant in the rest of the world in terms of brands and leading the way.

[quote=“Team Andromeda”]You’ve answered your own point. Having 70% of all new Jobs in the UK go in immigrants is a huge issues, that’s why so many young can’t get a job - It may explain why Germany opted out of Accession .
Nothing to do with Skills and everything to do with cheap labour -Something which I would have thought you of all people would have been against [/quote]

So let’s not support it then, and let’s recognize how utterly screwed up this economy really is.

[quote=“Team Andromeda”]Try more like ?10 Billion ?30 billion if it all goes tits up and we get a massive attack , Where on earth you get ?100 Billion I really do not know . Anyway… You want to know what the UK spends each year on welfare ? Try something like ?209 Billion each year

That’s where most of the UK money goes

Lets not kid our self’s that out of the 3 million on the Sick or the millions on the dole. They’re aren’t a couple of million that are playing and abusing the system . No way in a country like ours could they be over 3 million people of working age not fit for any sort of work . [/quote]

You are missing the point though. You can cut that welfare all you want. It won’t change the fact that there are no jobs, and that there’s very little growth.

It’s going to be a slow decade.

I added an extra 0 by mistake on the cost of the Olympics. Whoops. Nearly 10 billion last time I checked. Still a lot to ask when they cut everything else.

Most data entry jobs went to India. Cheap labour.

The UK is not a self-sufficient sovereign nation. It’s just another market in the emerging global superstate. It would take a decade to change this, but no one is even trying because it’s what they want.

#20

SEGA still is the Market leader in Arcades, There’s been various corps that were once Market leaders seen their share go down - Not least the likes of Yahoo . They are still going and making a profit .

Konami ? Other than MGS they have even less IP that can appeal and sell on the world stage than SEGA. Square too have all sorts of issues , and the need to lay off staff even in IO Interactive studios , that’s with out the 300 or so Japanese Square staff that lost their jobs a couple of year ago
Also Square have been forced to issues profits warning for the last couple of years and their profits are less than SEGA’s btw

Keep with the news Duke…

Until we leave the EU ,there’s nothing we can do about it . The EU controls our borders now .

No Duke there are jobs are there and I’m not for slashing the welfare bill. I am for getting the low life’s that abuse the system into work and paying their way …

It depends on your definition of cuts . if fact our current spending for the whole of this Parliament will be that to what the government of 2005 was spending (when we won the bid)

Was the UK such a bad place then ?

Not if you use the likes of Plus Net, 02 admiral and a host of others all with UK call based centres (its now a selling point for a lot of corps ) Also where do you think some of the biggest supplies of Tech are based India or UK.

Where ARM, Power VR are based , where are F1 teams like McLaren, Red Bull, Lotus, Williams Force India (for added irony) Mercedes, Caterham, Marussia based , where is Rock Star North , Lionhead, Codemasters based , I can’t think of one India developed game, much less a studio

Where it comes to Tech its not all gone to India , quite a lot of it is still in the UK