Sega Incur Losses, Cancel Games And Restructure Company

By Ishaan . March 30, 2012 . 9:00am

“It is hereby notified that Sega Sammy Holdings Inc. is expected to record extraordinary loss in the year ending March 2012,” a financial document published today by Sega begins. It goes on to mention that, due to these extraordinary losses, the company will implementing a structural reform of Sega’s consumer games—the term used for home console/portable software—division.

 

One of the unfortunate consequences of this is that games will be cancelled.

 

Sega haven’t specified which ones, but a separate document reads: “We conducted detailed reviews of earnings projections for titles targeted toward the U.S. and European markets and decided to narrow down sales titles from the following period and after to strong IPs, such as ‘Sonic the Hedgehog,’, ‘Football Manager’, ‘Total War’ and ‘Aliens’ which are expected to continue posting solid earnings. In accordance with this, we are canceling the development of some game software titles.”

 

Sega’s losses for the fiscal year are amounting to 7.1 billion yen (about $86.4 million), which includes losses incurred by the ongoing structural reform. As part of the announcement, the company halved its forecast numbers. In addition to the cancellation of certain games, Sega will streamline organization in the U.S. and Europe to create a smaller company that they feel will be better positioned for sustained profitability.


Read more stories about & & on Siliconera.

  • Peter L Newman Jr.

    dude there’s a reason why they are going out of business, sth4 sucked, noone cares about the damn racing game, and unleashed was pretty annoying with the terrible werehog idea not to mention it had random new characters none cared about and you had to collect coins just to play the levels, the only good game that they came out with recently was colors and generations other than a lot of the games were terrible to the core, you ask a lot of true sonic fans about that one. but if they were to come out with something good like generations then they could come back more, but until then they will suffer a little bit and maybe until it dies out or some one else buys the rights and do what they didn’t.

    • Mrgrgr and Unacceptable World

      And you know all of the game that you don’t care about there sell much more than its other franchise don’t you?

      Sonic will remain profitable there. The whole problem is other than several Ip’s, other Sega franchise does not sell really well no matter how good the game is.

      Shinobi for 3DS is not selling well even though the game had a really solid gameplay there and improve more on the originals.

      Rhythm Thief is overshadowed by FF Thearhythm there even though it has a nice story, lots of unique Rhythm game there.

      Most of Platinum games never sold well even though all of them are mostly considered as one of the best game there.

  • Peter L Newman Jr.

    if they were to come out with more games like sonic generations then they could make a comeback not to mention they should make a sonic adventure 3 and bring back the chao(s) that would probably re awaken some more die hard sonic fans.

    • Mrgrgr and Unacceptable World

      Targeting Diehard Sonic fans is never a good idea there considering Sonic fans is one of the worst game fans which complain from the smallest thing to everything there.

      And here, i believe Sonic is profittable due to many parents buying Sonic games for their child like me buying several Sonic game for my little sister.

      And about Sonic Adventure 3 there, i thought Sega just insert the game domain there?

  • Peter L Newman Jr.

    lololololololololol no they don’t, xbox and ps3 have a lot more games than the wee wee can ever be available for. that wouldn’t be back in until the U comes out.

  • Peter L Newman Jr.

    nice thinkin my friend.

Video game stories from other sites on the web. These links leave Siliconera.

Siliconera Tests
Siliconera Videos

Popular