Sega Halves Financial Forecast, Forced To Cancel Games
SegaMany of your games haven't been up to snuff for quite some time, Sega. Not to add insult to injury or anything...
According to GameSpot, Sega has revealed bad news for gamers and shareholders: They're halving their financial forecast for the fiscal year, canceling some projects, and restructuring due to the "rapid change" in the game market.
We don't know which games were dispatched but it's enough to know that some projects have to be abandoned. They did say upcoming titles in the Sonic the Hedgehog, Football Manager, Total War, and Aliens franchises are safe, so at least those fans can breathe a sigh of relief (for now). As for those "rapid changes," Sega apparently hasn't been able to keep up, as they are predicting a drastic loss of 7.1 billion yen ($86.4 million) for the year ending tomorrow, March 31. Of that loss, 4.9 billion yen ($59.7 million) is due to the restructuring.
Furthermore, the company says they plan to "streamline its organization in the United States and Europe; the idea is that doing so will put them in a better position for "sustained profitability." They also want to do more in the digital market, which has proven lucrative for various game publishers. Overall, profits are expected to drop nearly 50%, so all this shifting seems justified, yes? Let's hope it works.
'sigh' Not to depress anyone, but remember the days of Nintendo vs. Sega when they were basically the only two video game companies in the world that mattered?
Tags: sega, sega games, games industry, sega game company
3/30/2012 10:15:30 AM Ben Dutka
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Comments (29 posts)
Lawless SXE
Friday, March 30, 2012 @ 10:58:18 PM
1 up, 0 down
booze925
Friday, March 30, 2012 @ 10:39:37 AM
Reply
Last edited by booze925 on 3/30/2012 10:40:00 AM
0 up, 0 down
telly
Friday, March 30, 2012 @ 10:40:11 AM
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And Ultimadream, I will FLIP OUT if anything happens to Aliens ;)
3 up, 0 down
Temjin001
Friday, March 30, 2012 @ 10:49:29 AM
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I so hope VF5 FS for PSN doesn't get the axe. It'll make me quite sad.
Anyway, hopefully, in this sense, the next-gen comes sooner rather than later so these pubs can more quickly rebound to a healthier landscape that has adapted itself to the challenges of maintaining profitability this gen. give me the down thumbs =p
Because, really, when it comes to choosing between re-sellers increasing their bottom line for the sake of idiots who have little sense of the value of their earned money ( actually, scratch that, these games are probably purchased on credit, which may end with bankruptcy at the age of 25, seeing how quickly they choose to throw $30 away on trade-in) and mid-sized pubs. I choose smaller and mid-sized pubs. Because without games to play, we have nothing left here.
Last edited by Temjin001 on 3/30/2012 10:54:43 AM
2 up, 0 down
Underdog15
Friday, March 30, 2012 @ 10:57:54 AM
It's a logical observation you make. Always sad to see industry representatives heading down the creek.
0 up, 0 down
Highlander
Friday, March 30, 2012 @ 11:58:23 AM
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Kinda seems that if Sega is restructuring because of unsustainable profitability, they might have a point complaining about the billions of USD (wonder what the collective global impact of used game retailing is?) lost to used games sold by retailers...
0 up, 0 down
telly
Friday, March 30, 2012 @ 12:08:48 PM
0 up, 0 down
Temjin001
Friday, March 30, 2012 @ 12:40:55 PM
=P
0 up, 0 down
Highlander
Friday, March 30, 2012 @ 1:16:23 PM
0 up, 0 down
WorldEndsWithMe
Friday, March 30, 2012 @ 3:14:48 PM
4 up, 0 down
Temjin001
Friday, March 30, 2012 @ 3:53:28 PM
I tried the demo. It was sort of cool. Almost cool. But ultimately felt like a game pretending.
0 up, 0 down
jaybiv
Friday, March 30, 2012 @ 10:00:37 PM
2 up, 0 down
Beamboom
Saturday, March 31, 2012 @ 9:34:46 AM
The problem here is the quality of their software. They simply don't release what the market want - used or new.
To keep them artificially alive by trying to channel as much money their way as possible will only delay the process.
0 up, 0 down
Oyashiro
Friday, March 30, 2012 @ 12:16:57 PM
Reply
4 up, 0 down
Highlander
Friday, March 30, 2012 @ 12:22:26 PM
0 up, 0 down
Oyashiro
Friday, March 30, 2012 @ 12:24:57 PM
0 up, 0 down
gumbi
Friday, March 30, 2012 @ 1:20:28 PM
You wanna make a quick buck SEGA? here's a golden opportunity.
0 up, 0 down
Laguna
Friday, March 30, 2012 @ 1:27:08 PM
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Since they are digital titles, should they be considered safe?
1 up, 0 down
Temjin001
Friday, March 30, 2012 @ 1:42:20 PM
If it's not online, I'm not buying it.
Also, while I know the profitability climate is a challenging one for any dev these days, I do think SEGA isn't a victim, or nothing. Really, a lot of what they've released isn't the greatest, critically, or with the masses. So this move to me signals failures across multiple fronts.
0 up, 0 down
CaptRon
Friday, March 30, 2012 @ 2:56:45 PM
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1 up, 0 down
WorldEndsWithMe
Friday, March 30, 2012 @ 3:15:58 PM
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0 up, 0 down
Temjin001
Friday, March 30, 2012 @ 3:57:00 PM
I think they're probably on the right track by trying to meet Activision and EA at their level. Instead, focusing their efforts on Nintendo's audience and niche audiences that don't require massive budgets. Total War, for one, looks like an awesome turn-based strategy game.
0 up, 0 down
Temjin001
Friday, March 30, 2012 @ 4:07:58 PM
0 up, 0 down
WorldEndsWithMe
Friday, March 30, 2012 @ 4:23:23 PM
1 up, 0 down
Laguna
Friday, March 30, 2012 @ 5:23:15 PM
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It would be cheap right?
We could stand together as gamers and buy the collection, just like Valkyria Chronicles I!
0 up, 0 down
Rogueagent01
Friday, March 30, 2012 @ 6:32:33 PM
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Long live SEGA!
0 up, 0 down
JackDillinger89
Friday, March 30, 2012 @ 6:37:57 PM
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0 up, 0 down
___________
Saturday, March 31, 2012 @ 5:08:56 AM
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what do we have to do to get through to these idiots?
SEGA, YOUR PLUMETING SALES HAVE NOTHING, ZERO, ZILCH TO DO WITH THE “Severe economic environment in the US and Europe and rapid change in market environment of home video game software”!
NOTHING!!!!!!!!!!!!!!!!!!!!!!!!!!
let me ask you this.
when was the last time you released a big high budget AAA game?
something that can stand up to other big releases like ME3 or max payne 3?
never since last gen?
well, dont you think maybe, just maybe, that could be why?
honest to god i have not played a awesome sega game in god knows how long!
as i said in the other article best game sega has released this gen is vanquish.
and thats not exactly what you would call a AAA game!
ive got really high hopes for aliens colonial marines, hopefully that can be the first big budget awesome AAA game sega releases this gen!
i hope so they have bled allot of money into that, and gearbox have been working on it since the start of time!
i wish they would make a new condemned game.
i wonder what monolith are doing?
last game they released was F.E.A.R 2 which was pretty meh.
oh what i would do to see them back on their best series!
condemned 2 was freaking awesome!
one of the best games this gen, and one of the very few that was actually scary!
so please sega, please put them back on condemned 3.......
0 up, 0 down
Ultimadream
Reply
Friday, March 30, 2012 @ 10:33:36 AM
They also have this 4D digitial rollercoaster thing set up, I have never cared to look at the details of it in all honesty.
It just seems they're throwing money away in all the wrong places. I hope that Aliens game is not canceled though, I have waited a long time for that.