SEGA Downsizes Staff by 300, Puts Focus on Mobile and PC

If you think Nintendo has had it rough financially, their former rival SEGA is in a much more dire situation. In rather unfortunate news this morning, SEGA has announced that it will submit 300 global staff in their publishing division as “voluntary retirement”. Furthermore, the company will be re-locating their SEGA of America offices from San Francisco to somewhere in southern California.

These moves are meant to re-structure the company to focus on PC and mobile gaming. As the company states in an official release:

Voluntary retirement will be solicited in the aforementioned businesses to be withdrawn or consolidated and downsized, while at the same time personnel will be repositioned in Digital Games and growth areas of Group mainly as development personnel, in order to establish a structure which can constantly generate profits. The purpose of these measures is to improve the business efficiency of the Group.

The most recent console or handheld games of note from SEGA include Alien: Isolation and the Sonic Boom pairing. Alien was said to have crossed the million mark in four months, these slow sales another sign of SEGA’s new focus on what makes revenue. On PC, the company has franchises like Total War and Football Manager to carry them on, while they sally forth on mobile with adaptations of franchises like Sonic the Hedgehog and Super Monkey Ball.

SEGA expects a profit of ¥4 billion for the fiscal year 2015, down sharply from last year’s ¥30 billion profit, thus necessitating the unfortunate redundancies of their hardworking employees. The SEGA employees affected by the voluntary retirement will begin their transition over a two-week period beginning February 9th, and must leave the company be the end of the fiscal year in late-March.


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