Sega To Shut Down Multiple European Offices This Weekend

By Ishaan . June 28, 2012 . 10:00am

This week sees more unfortunate news for Sega, who confirmed this morning that they will be shutting down their offices in France, Germany, Spain, Australia and Benelux, and partnering with other publishers to release their games in those territories instead.

 

Koch Media will be assisting Sega with distribution of their packaged games in Germany, Switzerland, Austria, France and Spain. Meanwhile, Level03 Distribution and 5 Star Games will help with distribution across Benelux and Australia respectively. These changes will be in effect as of July 1st, and will be overseen by Sega Europe’s main headquarters in London.

 

As previously reported, Sega will be shifting their focus to developing digital and social games for mobiles, smartphones and PCs, and lowering their output of packaged games. To put this in perspective, Sega sold 17.2 million copies of packaged games worldwide during their last fiscal year. This year, they estimate they’ll only be selling 8.9 million packaged games globally.

 

The packaged games that are developed and released will focus primarily on brands that Sega feel are strong enough. As mentioned in past reports, these will include Sonic the Hedgehog, Total War, Football Manager and the Aliens franchise. That said, Sega still plan to publish PlatinumGames’ Anarchy Reigns, an online multiplayer brawler, sometime in Q1 2013.


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  • http://ggftw.com/forum/ Monkey_T

    Oh, how the mighty have fallen.

  • http://www.facebook.com/Asch91 Mohsin Faiq

    they still think sonic is “strong” huh…
    what about valkyria chronicles sega? you know, the one you murdered by releasing the sequels on psp

    • Vampiric

       valkyria is uneffected by this european branch move

    • http://twitter.com/#!/Leafy_Cam Leafhopper

       After the sales of Sonic Generations, its clear that Sonic is still successful. As for VC, yeah they shot themselves in the foot by putting them on the PSP but hell even VC2 sold well outside of Japan and they didnt localize 3. I dont get it.

      • Kevadu

         VC2 did not sell well at all outside of Japan.  Where did you get that idea?

        • http://twitter.com/#!/Leafy_Cam Leafhopper

           Didn’t sell better than they thought it did? I guess not. I thought I heard VC2 did okay.

          • Patrick Lawson

            He’s right, it didn’t.

          • Nemesis_Dawn

            VC2 sold about 1/6th of what VC sold.

    • Vampiric

       actually the psp saved the series

    • Herok♞

      They didn’t murder the series by putting it on psp, in Japan they did about the same sales wise because Japan actually likes the psp which is why they still new games for it, so it wasn’t even close to murder.

  • Cephrien

    See what happens when you delay Anarchy Reigns that much? :I

    Jet Set Radio 3 is your only chance, Sega. CHOP CHOP. >:0

    • Patrick Lawson

      They delayed it because on February 11,2013, SEGA will publish its FINAL official 3rd party releases Aliens Colonial Marines and Anarchy Reigns.

  • Vampiric

    Remember this only effects europe.

    Not there japanese nor US branches

    Yakuza, and other japanese titles they have planned are still going on

    • http://twitter.com/#!/Leafy_Cam Leafhopper

       Doesn’t change the fact that things are looking more and more grim for Sega in general :(.

      • Vampiric

         thats because as a company, when you ignore your fans and makie bad decisions bad things can happen.

        Its why there japanese branch largely has remained un effected.
        People want yakuza, phantasy star, random rpgs, and that is what they deliver

        • http://twitter.com/#!/Leafy_Cam Leafhopper

          Yeah I get what you mean.

        • http://www.siliconera.com/ Ishaan

          This has nothing to do with ignoring of fans. It simply has to do with not being able to make money off of their packaged games business.

          • Vampiric

             DUE in large part to ignoring fans, bring over games we dont want, and not bringing over the games we do, hence not making the money they want to

          • http://www.siliconera.com/ Ishaan

            Except that by “fans,” you’re referring to fans of Sega’s niche games like Yakuza and Valkyria Chronicles, which wouldn’t pull them out of their financial mess anyway.

          • Vampiric

             uh yes, you read me like a book

          • Patrick Lawson

            If SEGA were in ANY financial trouble 3rd party wise, they wouldn’t be dismantling their entire 3rd party global packaged business. 

            SegaSammy’s investors are doing this to make way for Sega Orbi Enterprises, a new company that will be official formed on August 1,2012.

    • Patrick Lawson

      This is what I told everyone last week. After 11 long years, SEGA is packing it up as a 3rd party only brand and is preparing to assemble 1st party game divisions. 

      SEGASammy is also being re-shuffled, and re-formed into Sega Orbi Enterprises. Which will be a 1st party gaming brand,non gaming multi-corporational franchisee and 3rd party, Digital,Social Networking Browser,PC packaged,portable,mobile publisher.

      So like I said guys, 11 years after they abandoned Dreamcast, SEGA is preparing to re-enter the home consumer gaming hardware business and they’ve returned with re-enforcements.

      • http://www.siliconera.com/ Ishaan

        Sega aren’t going to re-enter the traditional videogame hardware market. They don’t the resources or the development pipeline for it. I don’t know where you’re getting this from.

        • Patrick Lawson

          Yes they are. I sent the source information to Siliconera.

          • http://www.siliconera.com/ Ishaan

            Trademarks don’t indicate anything, though. Yes, the Orbi enterprises trademark may amount to something, but it doesn’t have to be a videogame system. Trademarks are filed in a manner that they cover everything humanly conceivable.

      • 30sGamer

        I’m more inclined to think that they’re “packing it up”, rather than the rest of your speculation. 

        Their financials are dire, like life-support dire.  They’re in no position to re-enter the console market, not with so many competitive players already on board. 

        If anything they’ll end up going mobile/ digital only. And pumping out Sonic in all his many permutations.  

    • PersonaSpace

      Right, but the chances of seeing Yakuza in the US (or even in English) are even less likely now; Sega’s US division mostly focuses on downloadable games.

      • Vampiric

         we will get it 100 percent chance

        • Kevadu

          I have no idea where your confidence comes from.  Previous entries didn’t sell that well.

    • http://www.siliconera.com/ Ishaan

      It does affect their U.S. branch, and their Japanese branch, too. They’ve already mentioned restructuring their U.S. branch in a previous statement, and cutting their overall packaged games sales in half affects the entire company.

      • Vampiric

         theyve been vague about other changes to other regions……….

        • http://www.siliconera.com/ Ishaan

          I wouldn’t say this is vague at all: http://bit.ly/MVOhMf

          • Vampiric

             its alittle vague as we are still seeing new valkyria, shining, phantasy star, yakuza

          • Anime10121

             “We” as in Japan, the west (America/Europe) hasnt seen ANY of those series in years, besides Yakuza, and thats looking less likely to continue in the west as well.  I wanna be optimistic too, because I like Sega’s titles, but their recent behavior regarding the west has been extremely subpar, and many of the series I like from Sega are not getting released in the west.

          • http://twitter.com/RaiuLyn Raiu

            I wish I could be as optimistic as you are… But my faith isn’t that strong to hope that any of those games localised…

  • http://epiclyamazing.wordpress.com/ AzureNova

    Wow, that really sucks. I feel sorry for those who worked in those offices =(

  • Brimfyre

    Now I feel really bad about wishing their demise last week. It was a joke I swear, please don’t vanish Sega! Just make better decisions. That’s all I ask…..

  • XYZ_JolteonZ980

    Well perhaps this means SEGA can get cranking on that Sonic Unleashed sequel as well as Tri Ace led Sonic the Hedgehog RPG as well as Bioware to make another one for consoles. Its time for Sonic to go on to big things and being more focused than ever should allow them to bring to us what we want.

    • Patrick Lawson

      People HATED the Sonic Unleashed game, for unfair reasons. SEGA of Japan isn’t about to put up with Wii U at all.

  • badmoogle

    I love SEGA.I wish them the best whatever they do.Hopefully one day they will re-evaluate their strategies and re-enter the AAA market better prepared and with better planning.

  • http://pulse.yahoo.com/_LSXK6H5DIAWZWFQ252ZC3XIUGM .

    Well, if they had decided to ‘grow’ their brands like Valkyria Chronicles, Shining Series, or Phantasy Star they would be ‘strong’ too. We got a truncated Shining Force 3 for Saturn, delays for Phantasy Star Online support events compared to the JP updates, and Valkyria Chronicles 3 unreleased because it wasn’t ‘strong’ enough IP…a very new IP comparitively speaking with great reviews. I’m so jaded with SEGA; let them make bad sonic games until they lose all their fans.

    • Patrick Lawson

      Everyone is misunderstanding them and don’t even KNOW What SEGA’s Japanese investors are actually thinking. This is a strategic marketing move. SEGA is tired of publishing 3rd party content in a bureaucratic,over-saturated,over budgeted, stagnated US market. The cost of games is simply WAY too high averaging $50-60 million a game. Even with an $86 million loss, if SEGA were in any financial trouble, all they would do is just cut back on packaged content, not discontinue it. They’ve been looking for an excuse to abandon all 3rd party console gaming content, people expect them to run in a never ending circle of publishing overlooked games that nobody will buy because its not Call of Duty or some rehashed garbage.

      People think they know SEGA and that SEGA is a worthless limited company that will never go back to being what they were in the 90s. They’re about to be proven wrong.

      • M’iau M’iaut

        Sir, you have made this point numerous times across more than one thread. It is dangerous to use one or two legal documents as proof. Such materials are required to be broad and cover anything and everything both past and future. A company must do this to protect existing licenses and rights. 

        If the course Sega is taking is as you describe we will report such and a guarantee there will be much rejoicing. But let’s wait until that day comes to announce these things.

        • Patrick Lawson

          I understand the risks that I am taking. But the word must go out so people can stop fearing this report as doom for SEGA when its actually the beginning of SEGASammy’s entire re-organization.

          People want to hear good news about SEGA. This type of news causes panic and confusion because SEGA of Japan hasn’t yet revealed their true motives for dismantling Sega of Europe’s 3rd party dept.

          • M’iau M’iaut

            Thank you for coming. Banned.

          • Sevyne

            If this is the type of behavior coming from the mods then I’m out of here. There was no need to announce to the world that you were banning him aside from the power of being able to do so getting to your head. Sure he could have toned it down and a ban was probably justified, but your method of removal was pretty arrogant. Don’t let your responsibilities here get the better of you.

            You can ban me for voicing that if you like, but then you’d further prove my point but I’m sure you probably don’t care either way.

          • badmoogle

            Um… wow.

          • http://www.siliconera.com/ Ishaan

            @sevyne:disqus Early on, we didn’t “announce” when we banned someone. We do it now because readers have requested it, so that they have a point of reference for the future as far as posting guidelines go.

          • Sevyne

            @Ishaan:disqus It’s in pretty poor taste to do so. I don’t get how it sets a good reference for posting guidelines either. If I didn’t read the entire post list here i would have completely missed why he was banned and not everyone is going to read every single post.

            Makes it even worse with the little “Thank you for coming” too. Was that really necessary? Not at all. I’m quite appalled that this is the type of behavior that is approved.

          • http://www.siliconera.com/ Ishaan

            @sevyne:disqus It’s not for your average reader, it’s for the people who post here frequently and do follow discussions. I think it’s a good idea, too, because it keeps the community informed of etiquette and doesn’t give off the impression that we’re being unfair when someone gets banned.

          • Sevyne

            @Ishaan:disqus  Making an example out of people is something I’ve just never agreed with. I understand wanting to keep discussions from degrading into the mess other sites seem to allow, but with this you are creating that atomosphere out of fear and not respect. I don’t think I’ll be returning here after today and that really is a shame because I did like the site, but i won’t be a part of this. It’s especially insulting the way it was done.

          • http://www.siliconera.com/ Ishaan

            @sevyne:disqus I’m sorry you feel that way, but I’m afraid we must do what we have to, to keep things orderly around here. Rampant rumours without concrete sources that misinform people, especially, are something we’d like to discourage, since the goal of this site is to make people more aware, not more ignorant.

            I don’t think we’re humiliating or degrading anyone either. He wasn’t insulted in any manner. It was all very polite.

            That said, I hope you find the community you’re looking for elsewhere, and thanks for sharing your opinion. I appreciate that you took the time out to explain your thoughts.

    • 30sGamer

      The Valkyria IP would have done much better if 2+3 were released as HD remasters in the West, instead of simply a failed attempt at penetrating the piracy riddled PSP market.  I bet if they bundled them today, they’d sell at least 200K+ lifetime sales, more than enough to recoup costs of translating one PSP game and porting two. They could even go digital only for maximum cheapness and returns.
      I’m inclined to agree with UUDDLRLR, we’re in for a crash. Too many publishers squandering obscene amounts of money on development without a clue on how to develop their I.P.s.  Think Capcom – their nickel and dime, b.s., DLC be damned – at least has a handle on their business.  Namco seem to be getting their act together, but they’re wasting the Tales IP for the most part – particularly when it comes to marketing and localization in the West, when it should be filling the void as top tier JRPG left by the FF series.

  • UUDDLRLR BASTART

    Stuff like this are going to become much more frequent when next generation rolls around. Rising costs and the necessity for mega hits or bust will hollow out the console industry, leaving a fragile opulent shell.

    The Japanese market was just the canary in the coal mine. Conservative turtleing around around old trusted franchises and rampant pandering are what is going to be for dinner until it all collapses under its own weight.

    The end is nigh!

    • Domii

      Where have you been? This is Sega we talking about here, this was their own doing and nothing else.

  • Zeonsilt

    This means no sequel for Resonance of Fate(it’s owned by Sega,not Tri-Ace).Sad news(

  • SirRichard

    Damn, this is terrible news, they must be doing really poorly. I know they had a rough year, but I didn’t think it’d be enough to shut down so many offices.

    Hang in there, Sega, hopefully things will turn around!

    • Patrick Lawson

      When Sega Orbi Europe is formed, you’ll be changing your tune.

      • M’iau M’iaut

        Please note my post below. Please stop these remarks.

  • Luis Camargo

    I’m really sad to read this. Sega is creating some of my favorite series, which deserved far more sucess than what actually received. 
    I’m still holding some hope for Yakuza 5 to be localized, even if it’s chances look very slim right now. I hope they do great with the mobile market so that they can re-focus to packaged games later.

    • Patrick Lawson

      Yakuza 5 will be SEGA’s final 3rd party packaged release in Japan. Sega of Japan will cease 3rd party non digital publishing in November. Besides, they ARE leaving 3rd party packaged games altogether.

      SEGA Orbi will still support PC,3DS and VITA 3rd party wise.

      • Kris

        But… The Yakuza team isn’t third party. They’re part of Sega.

  • Hating Ass Nigga

    Meh,I hope we atleast get Yakuza 5 before they kick the bucket.

    • Nemesis_Dawn

      You know the chances of that are less and less likely with each of these announcements. And I say that as a huge fan of the Yakuza series.

    • xavier axol

      crossing fingers :p

  • Seijien

    Did I mention that Sega is dead to me?

    • xavier axol

      sega wouldn’t be dead to me if they had released valkyria chronicles 3 (it should had been a ps3 game), shining hearts, and more phatasy star portable as a download over the psn in the u.s. & e.u.

      • Mrgrgr and Unacceptable World

        It will be still dead as gamers will still complain saying that they won’t buy digital format games or it will just end up being pirate considering all the game there is released on PSP.

    • badmoogle

      I guess you are not a fan of the Yakuza series?It’s still alive and kicking!

      • http://www.facebook.com/people/Mike-de-Groodt/100000446926616 Mike de Groodt

        I really do hope Yakuza 5 gets to be released in europe, packaged!

        or is that particular series considered Strong?

      • Seijien

        Not really. That’s the only positive point anyone has for them besides Platinum Games. Which needs to ditch Sega, because they’re worthless at this point. You can go ahead and say Sega is alive and kicking, but all I see is Frankensonic and severely delayed localization. Valkyria Chronicles is dead in the west as well, so they’ve really lost me. Right when I thought they were doing well. 

  • Domii

    Why am I not surprise by this news?

  • http://www.gamefaqs.com/features/recognition/21421.html?type=4 Kashell

    If I was playing Valkyria Chronicles 3 now, I’d be mourning. But I’m not. In fact I’m not playing anything by Sega right now. So…whatever.

  • Go2hell66

    i know a localisation on PSO2 hasn’t been confirmed yet, but i can’t help but wonder if this will affect it in anyway

  • CirnoLakes

    SEGA, if you are going so digital, please please fix your copy of Sonic Adventure you have on Steam. It’s disgraceful. People should not have to mod a game they bought from you, to get it to work, because they bought it on Steam.

    In fact, fix the entire non-working Dreamcast collection. Please. Please please please.

    And while you’re at it, bring over some high quality copies of Shenmue to Steam, as well.

  • http://pulse.yahoo.com/_LPUW3DGNVWCZ6MVLGHJA377P4M James

    wow if this is really what sega is going to do…then i am not supporting them any longer. 
    ‘Football Manager and the Aliens franchise.” umm yeah great games sega well done.. :| 
    RIP sega, and the great titles that we will now never see -such as Yakuza 5. Goodbye to innovative and original IP’s 
    Hello boring as hell, unoriginal games such as more sonic and Football Manager…..

    • Nanashrew

      they kept making all of these full original IPs and no one seemed to care to any great deal so the consumers have forced this upon them. they are in a big financial problem right now and need the support to survive so we can see them make more new IPs again.

      so for right now they are going with what gets them money and that’s sonic, aliens and whatever else.

    • Mrgrgr and Unacceptable World

      They come out with Infinite Space and i believe that outside of Japan, no one cares about that game even though it is a very vast and great Jrpg.
      Hell even most review said it is a bad game because they don’t understand how to play the game.

  • Nanashrew

    new IPs and new innovations are very risky. it’s sad that many of the great new games made have barely had any success despite the constant plee millions have for new IPs today, it’s no wonder they are falling on hard times. it’s equally as sad they keep eating up generic shooter after generic shooter despite asking for something else besides a shooter.

    i wish them all the best and will continue support and hope that all the employees who have lost their jobs find new ones.

  • Mrgrgr and Unacceptable World

    Man this is really a sad news for me here.T_T Considering i was born playing Sega Masters and follow them till their end on Dreamcast.

    And till now, i still find that Sega still come out with many great new IP’s however all of them are unable to really penetrate the market here.T_T(Infinite Space, Resonance of Fate)

    Well hope that Sega will still be able to continue making game here.^^

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