Sega Lays off 400 - Company sinking into Red

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http://www.gamesindustry.biz/content_page.php?aid=32919

Expects full year loss of JPY 26 billion

Sega Sammy is laying off 400 employees as part of cost cutting measures following further company losses.


The company has already axed 110 unprofitable amusement arcades and reduced pay and bonuses for managerial staff. The latest move, says the company, is to offer voluntary redundancy to approximately 400, bringing staff levels to just above 3,000 employees.


"Due to Sega failing to respond to changing business environment, the operating performance of its core businesses, including the amusement facilities business and domestic consumer business, has not been performing well," said Hajime Satomi, chairman and CEO.


"As part of these measures, Sega has determined to solicit voluntary retirement of employees to reduce fixed costs and gain greater cost flexibility through optimum employment."


The company has revealed losses of JPY 15.77 (USD 210 million) billion for the nine months to December, compared to a profit of JPY 49.38 billion the year previous.


It also suffered an operating loss of JPY 1.53 billion (USD 14.2 million) against a profit of JPY 75.2 billion (USD 700 million) for the same period last year.
Having originally forecast a full year profit of JPY 1 billion (USD 9.3 million), the company has now downgraded to a net loss of JPY 26 billion (USD 242.1 million).
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Sega REALLY needs to learn what the hell it is people don't like about what they're doing and fix it. A new Sonic game a year is not a good thing. Forgetting aaaall about previously made franchises is not a good thing. 2001 - 2002 was a good period for Sega games. After that, they got progressively worse.
 
Well technically SEGA's been in the red for while, that's part of the reason they mergered with Sammy. It's terrible that they're most likely going to go out of the business the same way acclaim did.
 
while the new sonic games were not good, sales wise they were not a problem. (sonic x360 reach PH)
 
[quote name='Tsukento']Sega REALLY needs to learn what the hell it is people don't like about what they're doing and fix it. A new Sonic game a year is not a good thing. Forgetting aaaall about previously made franchises is not a good thing. 2001 - 2002 was a good period for Sega games. After that, they got progressively worse.[/QUOTE]
Read the article again. The layoffs and such have more to do with Japan's arcade business going into decline rather than the content of Sega's games.

To expand on 62t's comment, sales-wise, I think they're doing okay as far as home console games go, but arcades and arcade machines have long been a major part of Sega.
 
It's Sammy's fault. When they took over, they forced Sega to devote its focus to the arcade sector... Now the arcades seem to be in decline in Japan, likely thanks to the home and portable console sectors.
 
A Burning Rangers sequel could be fun. A Panzer Dragoon Orta sequel would be set-the-world-on-fire fucking awesome.
 
Sony would be smart to purchase Sega... assuming they have enough money to do so. Take all Sega franchises and pimp them out to first party Sony devs to make hits out of them. Not just Sony, but Nintendo, or Microsft would also be smart buy Sega and incorporate all their intellectual properties.


If EA wants to get in the console business it would be most beneficial to them to own Sega. By purchasing Sega you buy instant brand recognition [especially if you're going to release a console] Also you gain their franchises that have as much market recognition as Mario, Metroid, etc.
 
a[quote name='SL4IN']Well technically SEGA's been in the red for while, that's part of the reason they mergered with Sammy. It's terrible that they're most likely going to go out of the business the same way acclaim did.[/quote]


Hopefully someone(like Nintendo) would buy them out before that happens.

Acclaim's history was nothing but shovel ware crap, while Sega actually has a ton of IPs that are widely popular & sell decently.
 
[quote name='Thomas96']Sony would be smart to purchase Sega... assuming they have enough money to do so. Take all Sega franchises and pimp them out to first party Sony devs to make hits out of them. Not just Sony, but Nintendo, or Microsft would also be smart buy Sega and incorporate all their intellectual properties.[/quote]

I dunno, I don't think Sega's IP is worth much anymore. Sonic has lost relevance for years (and IMO was overrated compared to other IP in the 16-bit era), they don't do sports games anymore, and the only game people have been almost universally excited about from Sega is Rez HD for Live Marketplace. THey finally took Virtua Fighter online, but it was probably too little too late. It's a shame that they have fallen this much. It wasn't that long ago many considered them as a threat to EA. Take-Two and Activision are closer to that though.
 
Sega Sammy will be fine, although if they were for sale, it would be great if Nintendo bought them. Nintendo putting some of their people with Sonic Team on a Sonic game would be outstanding, just like some of the Virtua Fighter team (AM2?) working on a Nintendo fighter. Does Nintendo or Rare own the Killer Instinct IP?
 
[quote name='Otherguy676']Does Nintendo or Rare own the Killer Instinct IP?[/quote]


Some hobo probably fished that one out of the trash... KI has always sucked.

All Sega needs is a new Streets of Rage and they'll earn some coin.
 
[quote name='Dead of Knight']Protip to Sega: Stop making sequels no one gives a shit about, and focus on games people would actually play. Thanks.[/quote]

They are trying to make some new LPs though. The Club, Sega Super Star Tennis, Condemned 2, Samba de amigo. Its a step up from Sonic #300.
 
I just remember that time before TGS last year when there was a list of games that Sega was going to show (that turned out to be fake) and everyone was excited as shit about it because it was just sequels to great games that Sega made in the Dreamcast era... yet, they're so damn insistent on fucking up and making shit. fuck Sonic.
 
[quote name='Dead of Knight']Protip to Sega: Stop making sequels no one gives a shit about, and focus on games people would actually play. Thanks.[/QUOTE]

It's not that this is a bad statement or bad advice.

It is that gamers so flippantly assume that "games people would actually play" are something developers actively avoid to do.

"Just make good games" doesn't show a lot of thought.
 
I would be sad if virtua fighter disappears, but honestly, this is what they get for not putting Daytona USA on XBLA or making a new Daytona game for so long.

Because we all needed Sega Rally Revo so bad.
 
[quote name='Renzokuken']I guess Ryo Hazuki will never avenge his fathers death afterall.[/quote]

Its a damn shame too. That seems to be Sega's downfall. Huge ambition with little follow-thru.
 
Only YOU can save Sega from itself!

[MEDIA]http://www.youtube.com/watch?v=Hhhs5UpGrRE[/MEDIA]
[MEDIA]http://www.youtube.com/watch?v=7Yz_Oi_6w0Q[/MEDIA]
 
Dreamcast was Sega's last hope. Game is called Segagaga; its an rpg/sim about saving Sega. 1st video is FMV right before boss fight, second video is boss fight. Japan only.
 
I really think Sega just doesn't have much talent in house anymore. I'm sure they want their franchise games to be much better than they are, I just don't think they have the people to do it anymore.

So I'd agree with others that it would be wise for Sony or Nintendo to buy them and put their people on their franchises. I left out MS as they don't have the same level of in house development teams that Sony and Nintendo have at their disposal.
 
[quote name='SL4IN']Well technically SEGA's been in the red for while, that's part of the reason they mergered with Sammy. It's terrible that they're most likely going to go out of the business the same way acclaim did.[/QUOTE]
Keep in mind that the Sega-Sammy merger wasn't a mutual thing. Sega was in talks with Sammy (and Namco) in 2003, but the talks broke down, so Sammy simply decided to perform a hostile takeover on Sega.

http://www.referenceforbusiness.com/history/Ro-Sh/SEGA-Corporation.html

[quote name='dmaul1114']I really think Sega just doesn't have much talent in house anymore. I'm sure they want their franchise games to be much better than they are, I just don't think they have the people to do it anymore.

So I'd agree with others that it would be wise for Sony or Nintendo to buy them and put their people on their franchises. I left out MS as they don't have the same level of in house development teams that Sony and Nintendo have at their disposal.[/QUOTE]
Pretty much the only stable talent they have left is Yu Suzuki and the AM2 section. Yuji Naka left long ago to start his own company, but not much has been heard from him on the gaming front (He was at E for All apparently, though only his name was on his nametag). And Sonic Team has only been good with the portable 2-D games lately.
 
I'd rather them just stay 3rd party. Condemned and the M rated games would be killed if Nintendo bought them, MS would kill the kiddie franchises, and Sony.....I just don't see that going well.
What's funny is that SEGA was in talks to merge with Namco and Bandai at seperate times in the past.
 
[quote name='Cao Cao']And Sonic Team has only been good with the portable 2-D games lately.[/QUOTE]
And Sonic Team couldn't have made those games without Dimps!

Sadly, it seems like there hasn't been a really great game wholly developed by Sonic Team since the Dreamcast era.
 
[quote name='Thomas96']Sony would be smart to purchase Sega... assuming they have enough money to do so. Take all Sega franchises and pimp them out to first party Sony devs to make hits out of them. Not just Sony, but Nintendo, or Microsft would also be smart buy Sega and incorporate all their intellectual properties.


If EA wants to get in the console business it would be most beneficial to them to own Sega. By purchasing Sega you buy instant brand recognition [especially if you're going to release a console] Also you gain their franchises that have as much market recognition as Mario, Metroid, etc.[/quote]

I could see Nintendo buying Sega, considering their recent partnerships and the style of Sega games are not that far off from Nintendo's.

Nintendo is swimming in money, they can afford it.
 
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