Could this be the beginning of the end for Sega?

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03-31-2012, 02:30 AM
gamevet

Could this be the beginning of the end for Sega?

http://www.joystiq.com/2012/03/30/se...e-to-restructu

Quote:

Originally Posted by joystick

Sega's forecasts for the fiscal year ending March 31 have been adjusted down -- expected net income is down 47.4% -- and Sega Sammy's board of directors have enacted a drastic plan to reduce operating costs in the future.

Sadly, this plan involves the "streamlining" of Sega's operations in the US and Europe, to "create a smaller company positioned for sustained profitability." There is currently no word on how many jobs are being cut, or where, to create this smaller company.

The plan also includes a narrowing of Sega's lineup, to focus on franchises that the company expects to sell in the US and Europe, including Sonic, Football Manager, Total War, and Aliens. That refocusing means some games have been canceled, though specific titles were not announced.

Sega's "extraordinary loss" (caused in part by costs from this restructuring) will see the company's expected profits drop from 38 billion yen ($462 million) to 20 billion yen ($243 million,) with sales revenue dipping about a half-billion dollars. The cancellation of these projects and this reform is estimated to have a 7.1 billion yen ($86.5 million) price tag.

Update: After the break, find Sega of America's full statement.
Statement from Sega of America regarding restructuring:

Due to the challenging economic climate and significant changes within the interactive gaming industry, SEGA has made the decision to consolidate its publishing business in order to focus on developing digital content and driving its existing IP such as Sonic the Hedgehog, Total War, Football Manager and the Aliens franchise. This realignment of the business around existing and digital IP is a necessity to ensure that SEGA continues to invest and enhance its digital business offering, whilst reducing its reliance on traditional packaged goods.
As a result of the SEGA Sammy Board decision to consolidate the business, many of our internal functions will be re-structured and this could result in a number of redundancies within the publishing business across the Western organisation. The company will be entering into a re-structure phase to reflect the unprecedented change in our industry and to move the company forward appropriately.
The changes will position SEGA as a content led organisation, maximising sales with a strong and balanced IP portfolio across both packaged and digital distribution. The management team are confident that the proposed restructure will benefit the company and make it fit for purpose within the changing nature of the industry over the coming years.

The future doesn't look good for Sega Sammy. :(
03-31-2012, 10:58 AM
SEGA.GENESIS1989

It should be noted that SEGA's situation is not unique at the moment. Nintendo recently posted a loss of 48.35 billion yen ($627.9 million) for the first nine months through December. That was a reversal from a 49.56 billion yen profit the same period in 2010. Sony forecasted a $2.9 billion annual loss, despite rising PlayStation 3 sales. The corporation suffered a $2.1 billion net loss between October and December alone, attributed to the strong yen, the economy, and a flood in Thailand that disrupted its television supply chain. These were all factors that were bound to affect SEGA as well. Other publishers

In terms of video game publishers, Square Enix reposted a $16 million USD loss for the first quarter of 2011. In 2010, Namco Bandai posted a 342 $million and cut 600 jobs. It would be interesting to see how these and other Japanese publishers and or developers faired this year.

It is also being reported that the old console hardware has resulted in an unexpected slowdown in software sales which supposedly hurt the industry as well. In the American contest, weak U.S. consumer electronics spending hurt the industry during the holiday season. The other factor is the rise of the smartphones, tablets, and pc gaming: the cheaper casual games on smartphones and social-networking sites supposedly drew consumers away from traditional gaming platforms.

This was an interesting statistic that I found this morning that was conduted by Nielsen Media Research:

http://blog.nielsen.com/nielsenwire/...form-games.png

Other statistics I found interesting are as follows:
- 80% of an expected 190 million households, 148 million households, with next generation video game consoles will have this console connected to the Internet.
- 190 million households will use a next-generation video game console in 2012
- 75% of connected-console households more than 110 mln will use console-based video services at least a couple times each week.

In the face of all these stresses, SEGA needed to consolidate their operations and lay off staff. If SEGA is to weather the storm and become profitable again, they will have to consider some of the above statistics statistics.
03-31-2012, 12:35 PM
QuickSciFi

No. The "beginning of the end" for Sega started in March 26, 2001.
03-31-2012, 12:57 PM
eddiespruce

Quote:

Originally Posted by QuickSciFi

No. The "beginning of the end" for Sega started in March 26, 2001.

Indeed.
03-31-2012, 12:57 PM
The Jackal

I think this is a good thing; let Sega collapse, and let it's IPs be brought up by companies who know what they're doing, and let them handle any future games.
03-31-2012, 01:03 PM
Kogen

I want Majesco to make SEGA games again.

Also, out of curiosity, why are so many people so stupid about this news? SEGA just fired redundant people and decided to focus their games instead of making masses of bad games no one wants. This is an improvement.
03-31-2012, 01:12 PM
QuickSciFi

Quote:

Originally Posted by The Jackal

I think this is a good thing; let Sega collapse, and let it's IPs be brought up by companies who know what they're doing, and let them handle any future games.

Man, that's exactly how I've felt about every game made under Sega-Sammy since the above date. Tbh, I don't care either who develops Sega's original IPs. It's obvious now why we don't yet have a Shenmue III. I can already see a good thing coming from this; Yu Suzuki getting his complete dev and publishing rights to the Shenmue franchise.
03-31-2012, 01:15 PM
MrMatthews

I honestly think Nintendo could make a better Sonic game than Sega's been making lately. Or at least one of their second-parties, like HAL or Retro.
03-31-2012, 01:16 PM
tz101

Current global economic crisis could well lead to the 2nd "big crash" within the video game sector. Part of what led to the crash of 82-84 was North American economic crisis. People without jobs, or worrying about the economy in general are less likely to buy luxuries like video games.
03-31-2012, 01:26 PM
The Jackal

Quote:

Originally Posted by Kogen

I want Majesco to make SEGA games again.

Also, out of curiosity, why are so many people so stupid about this news? SEGA just fired redundant people and decided to focus their games instead of making masses of bad games no one wants. This is an improvement.

All of them are redundant; Sega needs to hire new talent; close down a ton of it's studios, swallow up a good one, and change that into Sega; lose some money in order to make some money. What they're doing now is pointless and is no improvement, for them or us.
03-31-2012, 01:28 PM
gamevet

Quote:

Originally Posted by Kogen

Also, out of curiosity, why are so many people so stupid about this news? SEGA just fired redundant people and decided to focus their games instead of making masses of bad games no one wants. This is an improvement.

It's not being stupid. You hear news like this several years before a studio finally shuts down. It happened at Acclaim, Jaleco and Midway, to name a few. Sega was announcing the same sort of cutbacks shortly before the Dreamcast and if not for the president of Sega injecting 100's of millions of dollars of his own money into the company, they would have folded back then. $400 million in losses would put most companies out of business.
03-31-2012, 01:30 PM
Barone

Sega is died a long time ago. I don't care anymore... I'm all for other companies buying the rights of the old stuff and reviving the franchises for the good and the bad, 'cause "Sega" will just rererererelease Sonic collections from now on.
03-31-2012, 02:18 PM
Thunderblaze16

If anyone should buy SEGA, it should be either Treasure or Techno Soft.
03-31-2012, 02:34 PM
eddiespruce

Quote:

Originally Posted by Thunderblaze16

If anyone should buy SEGA, it should be either Treasure or Techno Soft.

Maybe Treasure, but according to Wikipedia, Techno Soft has been defunct since 2001, when they were purchased by a Pachinko maker called Twenty-One Company, although they did put out Thunder Force VI.
03-31-2012, 02:43 PM
cowboyscowboys

Quote:

Originally Posted by The Jackal

I think this is a good thing; let Sega collapse, and let it's IPs be brought up by companies who know what they're doing, and let them handle any future games.

Agreed.

Shenmue 3 I don't get it why would someone guarantee taking a loss on a game? Isn't Shenmue the John Carter of video games?
03-31-2012, 02:54 PM
ItellYaHuat

I don't think the industry is doing well in general. I don't think it's limited to just one company in Sega. I'm pretty sure that in these economic times, a good amount of people are sticking with either the cheaper PC version of games from steam or (and I think this one is more significant) purchasing small budget releases by indie game developers on mobile devices. Almost everyone I know has one. I don't think everyone will keep buying games at the $60 price point given all the options available to them.
03-31-2012, 03:00 PM
playgen

Sega have been releasing some brilliant games lately, its a shame people don't buy them. Anyone who moans about Sega but hasn't tried Sonic Generations yet, go and get a copy!
03-31-2012, 03:01 PM
ItellYaHuat

Quote:

Originally Posted by playgen

Sega have been releasing some brilliant games lately, its a shame people don't buy them. Anyone who moans about Sega but hasn't tried Sonic Generations yet, go and get a copy!

And it's not limited to that game to according to what I hear. I can't wait to try Generations which is another reason why I'm saving up to build a capable PC.
03-31-2012, 03:09 PM
Melf

Quote:

Originally Posted by The Jackal

I think this is a good thing; let Sega collapse, and let it's IPs be brought up by companies who know what they're doing, and let them handle any future games.

This probably wouldn't happen. I remember hoping the same thing when Data East went under, and its catalog has all but vanished with the exception of one collection.
03-31-2012, 03:25 PM
InternalPrimate

Quote:

Originally Posted by MrMatthews

I honestly think Nintendo could make a better Sonic game than Sega's been making lately. Or at least one of their second-parties, like HAL or Retro.

I'd jump off the Coronado bridge to see Retro make a Sonic game. Donkey Kong Country Returns totally blew away my expectations (as did Metroid Prime).
03-31-2012, 03:43 PM
Olls

You're late.
The 32X already marked the beginning of the end for Sega.
03-31-2012, 03:46 PM
Kamahl

The 32x (arguably the Sega-CD) marked the beginning of the end, the Dreamcast WAS the end.
03-31-2012, 05:31 PM
DarkDragon

Other than the Yakuza games I cant think of anything Sega released in the last 5 years that I really enjoyed.
03-31-2012, 05:43 PM
tim333

I was really disappointed to hear this because SEGA has published some games that I've enjoyed fairly recently, like Madworld and House of the Dead: Overkill.
03-31-2012, 06:28 PM
Zoltor

Quote:

Originally Posted by arnold_the_bartender

I don't think the industry is doing well in general. I don't think it's limited to just one company in Sega. I'm pretty sure that in these economic times, a good amount of people are sticking with either the cheaper PC version of games from steam or (and I think this one is more significant) purchasing small budget releases by indie game developers on mobile devices. Almost everyone I know has one. I don't think everyone will keep buying games at the $60 price point given all the options available to them.

Especially since almost none of the games these days offers the gameplay that would warrant such a price point(most of the high quality games these days are on the handhelds, which the games cost like 40 tops, so only a moron would pay 60 for a substandard, if not POS game).

As for Sega's situation, either they start releasing their games outside of Japan(atleast allow other companies to localize them) or I hope they do go under, with any luck, someone who actually knows what they are doing, will buy their IPs.
03-31-2012, 07:18 PM
Curryman123

The day that piece of crap 32x came out..that...that was the beginning to Sega's end.
03-31-2012, 07:34 PM
gamevet

Quote:

Originally Posted by DarkDragon

Other than the Yakuza games I cant think of anything Sega released in the last 5 years that I really enjoyed.

Valkyria Chronicle is alright. I gave up on Sonic games about a decade ago.
03-31-2012, 07:58 PM
sheath

I say Sega has been dead since even Sega fans failed to appreciate their last big push in 2006-8. Virtua Fighter 5, Sega Rally Revo, Iron Man, and Golden Axe Beast Rider were completely flat lined in sales, if they weren't also the irresponsible butt of bad reviews at the same time. Sega has no reason to continue to try to revive any of its franchises at this point, people have very selective and arbitrary tastes and nothing Sega ever made fits the bill.

As for the Genesis add-ons...

http://ts4.mm.bing.net/images/thumbn...2fsquirrel.gif
03-31-2012, 08:18 PM
Melf

Games like Iron Man and Beast Rider just plain sucked. They were so bad that Sega dissolved the studio that made them. VF has never been as popular outside of Japan as it is there, and Revo was just swallowed up by more popular franchises like Dirt (which is a true shame). Games like Sonic's Ulimate Collection and Yakuza, seem to be all people are paying attention to outside of Sonic, but not in such large numbers. Daytona and Afterburner Climax were great and few people bought them.
03-31-2012, 08:23 PM
sheath

The first Iron Man and Golden Axe Beast Rider were the two games of the last five years that made me hope that we might see some progress in gameplay. I cannot see how they just plain sucked, and haven't seen that view adequately explained. Unfortunately for me, I was trained at an early age to expect new gameplay ideas rather than more of the same, and presentation just doesn't register with me.
03-31-2012, 08:24 PM
gamevet

I really like Sega Rally: Revo, sure it's not as great as Dirt, but it's still a great racing game.

I didn't buy Daytona on PSN, but I did pick up Afterburner: Climax.
03-31-2012, 09:45 PM
JRedmond3

Quote:

Originally Posted by MrMatthews

I honestly think Nintendo could make a better Sonic game than Sega's been making lately. Or at least one of their second-parties, like HAL or Retro.

Sacrilege!
03-31-2012, 09:50 PM
sheath

Quote:

Originally Posted by gamevet

I really like Sega Rally: Revo, sure it's not as great as Dirt, but it's still a great racing game.

I didn't buy Daytona on PSN, but I did pick up Afterburner: Climax.

Afterburner Climax is pure sex.

I did buy Daytona on XBLA and have played it a few times online with friends. I'd honestly rather play the original Daytona USA adaptation on Saturn, they did a lot to make the game play well on a control pad, and I just seem to struggle with this enhanced port. I can't seem to nail the power slides as well. Even the Dreamcast game was easier.
03-31-2012, 09:54 PM
Melf

Quote:

Originally Posted by sheath

The first Iron Man and Golden Axe Beast Rider were the two games of the last five years that made me hope that we might see some progress in gameplay. I cannot see how they just plain sucked, and haven't seen that view adequately explained. Unfortunately for me, I was trained at an early age to expect new gameplay ideas rather than more of the same, and presentation just doesn't register with me.

I've already explained why I disliked BR, but Iron Man just had horrible gameplay and design. It was terrible to control, and the levels were just mind-numbingly repetitive and dull. I haven't played the sequel, but it's reportedly worse. If you expect new gameplay ideas, I don't see how you could like those two at all. They're perfect examples of uninspired design.
03-31-2012, 10:01 PM
sheath

Quote:

Originally Posted by Melf

I've already explained why I disliked BR, but Iron Man just had horrible gameplay and design. It was terrible to control, and the levels were just mind-numbingly repetitive and dull. I haven't played the sequel, but it's reportedly worse. If you expect new gameplay ideas, I don't see how you could like those two at all. They're perfect examples of uninspired design.

I really don't think you have explained your opinion in this case. Disliking something is one thing, calling its gameplay torrid or horrible is another. One only requires a few viewpoints to support, the other needs substantial evidence, preferably from other similar games, to support.

I cannot think of any 3D games like Iron Man 1 (the second didn't impress me at all) that mix aerial combat like an Ace Combat game with ground based mech fighting. I mean at all, I cannot think of a game that does it, and Iron Man mixes the two very well. I can say that the game has failed to inspire me to keep playing, as I seem to continually get my ass kicked by the Russian Idea Mechanics guy (Dynamo prototype?). While I play Iron Man I find myself reminiscing about Space Harrier while enjoying the modern aspects of the two genres I just mentioned. AAA it is not, but I rarely like those types of games.

Golden Axe Beast Rider is really in its own league, nothing with a group fighting mechanic can even come close to touching its simplicity and complexity. It isn't perfect either, and I don't expect casual players, or gamers who focus on cinematics, to enjoy it, but the gameplay really did innovate.
03-31-2012, 10:12 PM
Melf

I wrote a whole article about what I thought about BA. If that isn't enough to explain my thoughts on it, then there's not much else I can do there. Presentation was the least of that game's problems.

As for IM, I couldn't find the time to reminisce about other games while playing because I was too busy fighting the loose controls and cheap enemies. I really wanted to like it, but it just didn't mesh for me.
04-01-2012, 12:01 AM
Kogen

You would swear some people do not know what AM2 is.

Must be nice spending all day posing as a 'retro SEGA fan', but not actually being one.
04-01-2012, 01:07 AM
m68k

It is not a surprise to hear this news about Sega. What products have they made recently that entice buyers?
All I recall is rehashes of Sonic 1 and Sonic CD, but then again I am out of the loop. Things like Sonic Colors just sounded horrible.

Perhaps, Sega would be a bit better off if the Arcade business never died off the way it did. Its been years since I have seen any SEGA arcade machines outside of an actual arcade, and its been years since I have seen one of those.

I think Sega got themselves into the situation they are in. They made a string of horrid games in the mid-2000s (Sonic Heros bleh). How do you expect for your work to look quality when you release dud after dud?

Look at Valve. Portal 2 is a fantastic piece of work. The storyline, voice acting, gameplay, music, all line up and create a cinematic experience. When was the last time Sega did this? You could say Shenmue did this, but it never became a critical success.

Honestly, Sega has been doomed since the mid-90s. They had plenty of chances, they had talented people. What do they have now? Really? What do they have? Just a bunch of old IP and people who have no clue what to do with it. (If I recall most of the famous game designers like Yu Suzuki or Yuji Naka have since left Sega)

I can see Nintendo getting into this same situation in the 201x decade. Rapidly. I dont hear people praising the Wii, Wii U, or 3DS. Nor do I hear about fantastic must-have games from Nintendo any longer. The market is changing around them. Hardware will soon no longer be the deciding factor.
Its clear we are entering the converged information era.

Its clear hardware will no longer sell games. Games sell games. Names no longer sell games too.
04-01-2012, 08:59 AM
Kogen

Quote:

Originally Posted by m68k

It is not a surprise to hear this news about Sega. What products have they made recently that entice buyers?
All I recall is rehashes of Sonic 1 and Sonic CD, but then again I am out of the loop. Things like Sonic Colors just sounded horrible.

http://www.gamefaqs.com/features/company/1432.html

Quote:

Look at Valve. Portal 2 is a fantastic piece of work. The storyline, voice acting, gameplay, music, all line up and create a cinematic experience. When was the last time Sega did this? You could say Shenmue did this, but it never became a critical success.

Both Binary Domain and Shogun 2: Total War: Fall of the Shogunate are just as good as Portal 2, both released last month by SEGA (published and developed by).

Shenmue was also received well and sold enough to warrant a sequel. It obviously has a cult following and is very well known in 'gaming culture'.

Quote:

Honestly, Sega has been doomed since the mid-90s. They had plenty of chances, they had talented people. What do they have now? Really? What do they have? Just a bunch of old IP and people who have no clue what to do with it. (If I recall most of the famous game designers like Yu Suzuki or Yuji Naka have since left Sega)

They have new IPs. The Yakuza franchise has had 10 games since 2005; reviewed well and selling well, especially in Japan.

Both Total War and Football Manager - while not initially created by SEGA as franchises - have the same appeal in Europe and America. Some of the best selling and reviewed games in the industry. Both franchises are well active with yearly releases at the minimum.

SEGA of America/Digital made 'duds', yes, but they are gone now (which is why I do not see the news as negative). SEGA of Japan has mixed results, although every large publisher has that. Valve does not even come close to SEGA, or others, considering volume and expansiveness of the publisher. The Sonic Team logo is really what is holding SEGA of Japan back, along with weird/Japanese-only titles (likely what they cancelled in mass). The Sonic Teams (HD, Nintendo, DIMPS [co-developing handhelds and other Sonic titles]) have all been improving, however, and could potentially be on their way to solid 8/9 out of 10 games soon. DIMPS is the only one making questionable games right now. All three of them have good sales in the millions globally. AM2 is just as good as they were in the 80s, 90s, and 00s. Yakuza Team split into two, one for new IPs, one for the Yakuza franchise.

While the negatives are obvious, I think many people are ignoring the positives, how large SEGA actually is, and the benefits of this restructuring (it is not Doomsday, it is an improvement).

Also note how bad others are doing, as other posters mentioned. SEGA is faring well for an international Japanese publisher.

I do not share your view with 'clueless people', either. Many have been with SEGA since the 80s and 90s, and are just as good now. Not looking at their work does not make them clueless, it makes the ignorant complainer clueless for not knowing the talent these developers have and their successes.

Yuji Naka is a baka and quit to make Prope, a terrible developer. He was questionable in the mid-90s and lost any purpose in the 2000s.

Yu Suzuki is an on old man and is practically retired. What do you expect out of him?

Quote:

Its clear hardware will no longer sell games. Games sell games. Names no longer sell games too.

Duke Nukem's recent 4/10 selling millions disagrees with you.
04-02-2012, 02:00 PM
xelement5x

Yeah, the lack of release for some of the Japanese exclusives kills me. I loved Valkyria Chronicles for the PS3, bought VC II for the PSP, and was really hoping that VC III would make it stateside just to be disappointed.

Hopefully these "trim the fat" measures they're taking wont get rid of creativity and make them a common denominator, whatever sells to the best audience developer. Though, maybe they should actually make SEGA Bass Fishing of the Dead
http://www.youtube.com/watch?v=TDvI_0o1oe8

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