PS3 News: Sega Halves Financial Forecast, Forced To Cancel Games - PS3 News

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Sega Halves Financial Forecast, Forced To Cancel Games

Many 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)

Vivi_Gamer
Friday, March 30, 2012 @ 10:33:36 AM
Reply

Weird thing is Sega is wasting so much money on other departments right now. In my local shopping mall there is a little store which has them selling stuffed toys, not od SEGA characters though, or there these weird muffins or cuddly monsters, but nothing to do with any of SEGA's games.

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.

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Lawless SXE
Friday, March 30, 2012 @ 10:58:18 PM

The Alien game is coming from the Creative Assembly, a studio that has been one of Sega's most consistent performers, so it's likely that it's still on the table. Still kinda sad they canned Obsidian's Alien RPG, but it's Obsidian so...

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booze925
Friday, March 30, 2012 @ 10:39:37 AM
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I wonder if Condemned 3 is in development...

Last edited by booze925 on 3/30/2012 10:40:00 AM

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telly
Friday, March 30, 2012 @ 10:40:11 AM
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Phantasy Star, Altered Beast, SONIC, Streets of Rage... I could go on for days. Nintendo had a lot of the best-designed games from that era, but Sega's were definitely the coolest. Hope they find away to carry on.

And Ultimadream, I will FLIP OUT if anything happens to Aliens ;)

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Temjin001
Friday, March 30, 2012 @ 10:49:29 AM
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This is sad. It seems I just read about a bunch of THQ layoffs as well.
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

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Underdog15
Friday, March 30, 2012 @ 10:57:54 AM

no downvote from me, friend.

It's a logical observation you make. Always sad to see industry representatives heading down the creek.

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Highlander
Friday, March 30, 2012 @ 11:58:23 AM
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Now, what were folks saying the other day about how game producers and devs were making so much profit and were just gouging customers, and how their comments about the used game market were just about evil corporations trying to squeeze ever more money out of gamers?

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...

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telly
Friday, March 30, 2012 @ 12:08:48 PM

I totally get fan frustration over the thought of not being able to share games with their friends, trade in games they didn't really like/don't want to play anymore, etc., especially the younger fans who don't have a ton of disposable income (if any, depending on how young!) But they and everyone needs to realize that the mega used game market perpetrated by the Gamestops of the world is gouging developers and publishers something fierce. I'd encourage everyone to try and see things from the other side's point of view. Keep an open mind and read what a lot of developers and publishers are saying on the matter. It's hardly simple corporate greed that has a lot of developers/publishers worried sick about the future of their industry.

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Temjin001
Friday, March 30, 2012 @ 12:40:55 PM

In otherwords, Highlander is holding his hands up to his head like a moose, while sticking his tongue out then making the obnoxious noise "neaner-neaner-neaner" I'm right you're wrong--teasing

=P

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Highlander
Friday, March 30, 2012 @ 1:16:23 PM

No, Dyack and Braben are doing that, I'm simply applauding them rfom the sidelines.

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WorldEndsWithMe
Friday, March 30, 2012 @ 3:14:48 PM

I don't think anybody is buying Sega's bad games even on the used market.

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Temjin001
Friday, March 30, 2012 @ 3:53:28 PM

Binary Domain won't be getting my money or time =p

I tried the demo. It was sort of cool. Almost cool. But ultimately felt like a game pretending.

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jaybiv
Friday, March 30, 2012 @ 10:00:37 PM

Sega doesn't make games people want to buy plain and simple. In order to have used games, someone has to buy it new. They were unable to meet the challenge in a hanging landscape. Virtua Fighter was the last Sega game I bought. We live in a world where people pay a premium every year for an iPhone and there is a HUGE secondary market for that product, yet Apple still sells tens of millions each year. Businesses make profits by selling products and services that people want. When they can't, they go out of business.

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Beamboom
Saturday, March 31, 2012 @ 9:34:46 AM

When no-one want to buy their games, how can used market possibly be a threat. :D

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.

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Oyashiro
Friday, March 30, 2012 @ 12:16:57 PM
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I would happily give you some money if you would release Valkyria Chronicles III over here SEGA!

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Highlander
Friday, March 30, 2012 @ 12:22:26 PM

Ditto. Even just a straight up text translation/interpretation of the game would work for me.

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Oyashiro
Friday, March 30, 2012 @ 12:24:57 PM

Heck, They could make it Digital only... I just want to play it!

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gumbi
Friday, March 30, 2012 @ 1:20:28 PM

My sentiments exactly! I'll buy every Valkyria Chronicles game they release for us. And like Highlander said, we don't need full localisation. I fully endorse keeping original audio, as long as I can read menu's and dialogue this VC fan is covered!

You wanna make a quick buck SEGA? here's a golden opportunity.

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Laguna
Friday, March 30, 2012 @ 1:27:08 PM
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I really hope Virtua Fighter 5 Final Showdown and the Shenmue 1 and 2 HD remaster are still coming.

Since they are digital titles, should they be considered safe?

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Temjin001
Friday, March 30, 2012 @ 1:42:20 PM

I'm hoping so. I really don't think there's much of a risk in recycling assets already created from an investment standpoint. They've already stated that they've been sitting on the finished HD Shenmue games, just waiting to release them. Also, VF5:FS is probably already ported and ready to go. I suppose the question is whether they find it worth it, or not, to support VF5 with online play.

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.

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CaptRon
Friday, March 30, 2012 @ 2:56:45 PM
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Just give me Shenmue HD and I will give you money.

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WorldEndsWithMe
Friday, March 30, 2012 @ 3:15:58 PM
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That's unfortunate, and I hate to mention it but if they want to survive they are going to have to make a mainstream military FPS. :O

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Temjin001
Friday, March 30, 2012 @ 3:57:00 PM

hehe, while I know you're probably joking, but did't THQ try that and it got them nowhere?

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.

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Temjin001
Friday, March 30, 2012 @ 4:07:58 PM

oh, majoy typo there. I meant to say "trying NOT" to meet Activision and EA at their level.

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WorldEndsWithMe
Friday, March 30, 2012 @ 4:23:23 PM

THQ might yet reap rewards from Homefront. It sold well for a new IP and now Crytek is making the sequel.

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Laguna
Friday, March 30, 2012 @ 5:23:15 PM
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They should make an HD remaster of Valkyria Chronicles II and III.

It would be cheap right?

We could stand together as gamers and buy the collection, just like Valkyria Chronicles I!

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Rogueagent01
Friday, March 30, 2012 @ 6:32:33 PM
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Yeah I really hope restructuring will help them stay afloat. They have either developed or published some of my favorite games this gen. Yakuza 3, 4, 5, Vanquish, Stromrise, Valkyria Chronicles(which is one of my favorite games of all time), also all of which I bought brand new. There are those companies that I could care less about, but then there is Sega. If they were to jump back into the console war I would support them as much as I do Sony, maybe more.

Long live SEGA!

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JackDillinger89
Friday, March 30, 2012 @ 6:37:57 PM
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Let me guess, the used game market is to blame for sega downfalls?

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___________
Saturday, March 31, 2012 @ 5:08:56 AM
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sigh.
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.......

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