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SEGA Restructure - some games cancelled

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    SEGA Restructure - some games cancelled





    The Consumer Business centered on SEGA CORPORATION is expected to post operating loss in the year ending March 2012, given the severe economic environment in the U.S. and Europe and rapid change in market environment of home video game software. Amid such business environment, the Company decided to implement structural reform of the Consumer Business at SEGA CORPORATION to strive for a shift to a structure corresponding to the market environment for the purpose of earnings recovery in the following period and after.

    In accordance with the decision, the Company is expected to record extraordinary loss totaling around 7.1 billion yen, including costs in line with the streamlining of organizations and the canceling of development of some game software and costs for processing inventory. As for the Consumer Business in the following period and after, the Company projects decreases in operating expenses due to the reform.

    Please refer to ?Concerning Structural Reform of Consumer Business at SEGA CORPORATION? announced on the same day for details of the reform.
    Quote:
    1. Reason
    The Consumer Business centered on SEGA CORPORATION is expected to post operating loss in the year ending March 2012, due to the challenging economic climate and significant changes in the home video game software market environment in the U.S. and Europe.
    Given this circumstance, the companies determined that in order to actualize earnings recovery of the Consumer Business in the following period and after and return to a growth path, it is essential to streamline organizations in the field of home video game software in the U.S. and European markets, while shifting to a structure that corresponds to change in environment, including strengthening development in the field of digital content.

    2. Descriptions of measures

    (1) streamline organizations
    We will streamline organization in the U.S. and Europe home video game software. This will create a smaller company positioned for sustained profitability.

    (2) Reduction of number of titles
    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.

    (3) Booking impairment loss on work in process assets
    We will book impairment loss on work in process assets concerning some titles after
    reevaluating the profitability of work in process concerning game software which are going to be sold in the U.S. and European markets from the end of the current fiscal period to the following fiscal period.

    (4) Processing of inventory
    In accordance with the streamlining of organization in the U.S. and Europe markets, we will
    estimate allowance for expenses among game software inventories, including inventory on the market that is currently circulating.

    4. Future outlook

    In the year ending March 2012, we are planning to record 7.1 billion yen in extraordinary loss as
    expenses in accordance with the structural reform, which the cost is believed to be 4.9 billion yen.
    Please refer to ?Notice of Extraordinary Loss and Adjustment to the Forecast of Operating
    Results? announced on the same day as its forecast for the full-year consolidated operating results
    for the year ending March 2012.

    We expect operating expenses for the Consumer Business in the following period to decrease due
    to our latest efforts.

    #2
    couple of days early right?

    Comment


      #3
      It is time for Sega to unleash Shenmue 3 and turn their fortunes around.

      They aren't cancelling VF5 Final Showdown are they?

      Comment


        #4
        Originally posted by PaTaito View Post
        couple of days early right?
        I don't think it is an April Fool

        I can't imagine sega would be putting it on their corperate website if it was

        Comment


          #5
          Does this mean no Jet Set Radio in HD?

          Comment


            #6
            Does this mean the new Ringedge home console is cancelled?








            Seriously though, if SEGA died I would be genuinely saddened by it, they were responsible for many great memories of mine.

            Comment


              #7
              Here's the pertinent text:
              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.

              Comment


                #8
                Really hope that Yakuza will be included as a strong IP, was looking forward the 5th game. Don't think it sold amazingly well over here though

                Comment


                  #9
                  It's not bankruptcy, is it? Not even if you add CAPS LOCK. It's restructuring at the end of a bad financial year; which, not incidentally, has seen them pumping out all kinds of games - new IP and old - at a tremendous rate. They got over-stretched in the midst of a recession, no doubt with projects they were committed to/invested in well before the recession hit.

                  Anyway, buy Binary Domain if you truly care about SEGA ...

                  Comment


                    #10
                    It's retribution for not translating VC3.

                    [edit] they are restructuring, so it's not bankruptcy. Posting a loss for the fiscal year probably means that most recent games didn't have a huge impact on this, but surely this will cut down on games that even before the development phase.
                    Last edited by briareos_kerensky; 30-03-2012, 16:42.

                    Comment


                      #11
                      VF5 is an arcade port, digital release even. Its safe I'd say.

                      Maybe Sega will actually continue delivering games like this via the digital route? JSR is also simply an upgrade of existing work. Same goes for HOTD 4.

                      I could see them putting Yakuza on hold for the western market and not invest in new IPs such as Binary domain as well.

                      Comment


                        #12
                        They are not exactly BANKRUPT are they? Stop sensationalising threads ...

                        Comment


                          #13
                          I've been impressed with some of Sega's PSN/XBLA stuff recently - Daytona, Sega Rally, After Burner etc (lazy DC ports not withstanding). I hope that these kinds of games continue coming through. At the moment, my summer gaming doesn't go any further than JSR HD, VF5:FS and maybe Sonic 4 Ep 2 if it turns out ok. I wonder if these digital releases are proving to be good earners for Sega?

                          I also wonder if this news has any tangible effects for the rumoured Shenmue HD releases...would they be willing to get these in the wild and allow everybody to get worked up over a possible Shnemue 3 now? I hope so, but I'm a little less optimistic than I was a few weeks ago
                          Last edited by leem0184; 30-03-2012, 18:29. Reason: clarification

                          Comment


                            #14
                            Originally posted by leem0184 View Post
                            I also wonder if this news has any tangible effects for the rumoured Shenmue HD releases
                            Yeah but part of the rumours were that the Shenmue 1&2 HD remakes were finished months ago so it would be wreckless to cancel these now. (if the rumours were true that is.)

                            Comment


                              #15
                              Originally posted by MarioMark View Post
                              Yeah but part of the rumours were that the Shenmue 1&2 HD remakes were finished months ago so it would be wreckless to cancel these now. (if the rumours were true that is.)
                              As a fan, I'd agree, but the wider implication of them releasing the ports is the obvious Shenmue 3 question they will pose. If they're not willing to commit to a concluding sequel then they are walking very close to the edge by giving fans the first two installments.

                              The argument against might go along the lines of, "they're a big company, they don't necessarily care what the fans think", but then why has it taken so long to release the two most requested Dreamcast games, particularly if they've been ready for the past year.

                              Clearly, I'm only speculating based on rumours and reports, but colour me concerned by today's news.

                              Comment

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