Close
Report Comment to a Moderator Our Moderators review all comments for abusive and offensive language, and ensure comments are from Verified Users only.
Please report a comment only if you feel it requires our urgent attention.
I understand, report it. Cancel

Sega closing five European offices this year

Sega closing five European offices this year

Thu 28 Jun 2012 1:25pm GMT / 9:25am EDT / 6:25am PDT
Publishing

Euro boss Jurgen Post tells GI that Sega is preparing for the future

SEGA Europe will close five offices under the control of its European business this year as it focuses on core brands Aliens, Sonic, Total War and Football Manager, alongside its digital business.

"We are aligning business strategy, and we will be closing our offices in France, Germany, Spain, Australia and Benelux," SEGA Europe COO Jurgen Post told GamesIndustry International this morning.

The move is part of Sega's previously announced plan to streamline the company in the US and Europe, a move which will cost the business $83 million.

The UK studios, The Creative Assembly and Sports Interactive, will not be affected by the decision.

Post would not confirm how many jobs will be cut as a result of the closures.

"It's about the territories. UK stays as it is, we'll have some layoffs across the territories of course, but we don't give out any specifics on that," said Post.

"Basically for us it's putting a lot of focus into those studios and into their IPs. So Total War coming out of Creative Assembly, Football Manager coming out of Sports Interactive, so we want to diversify, so we want to have an increased focus on those brands. And we want to become better and more successful with those."

"We want to diversify, so we want to have an increased focus on those brands. And we want to become better and more successful"

And how does that affect new IP outside of those current brands?

"At the moment for us those are the four IPs we are talking about, they are our AAA IP. At the moment we are looking into options of course, but it's not like we are already developing some other titles in addition to that, no," said Post.

"It's a focus on those four core IP, and in addition to that we'll have digital. And digital still means 50 - 75 releases every year, so that's still a big number."

Koch Media will take over distribution Germany, Switzerland and Austria, France and Spain, with Level 03 handling Benelux and 5 Star Games looking after Australia.

"Level 03 distribution is basically the old management team in the Benelux setting up their own company and 5 Star is basically the old Sega managing director with some of the team setting up a distribution company in Australia," clarified Post. Those partnerships start July 1, but he explained the process of would be given time to ensure it's as smooth as possible.

1

The Creative Assembly's Total War

"We'll still have our offices in the territories and we'll close them down towards the end of the year. So it's not like we're moving out straight away, we still want to continue relationships with retail, manage the stock and trade, and have smooth transition to third party distribution."

PR and marketing for the territories will be conducted by the aforementioned distributors and SEGA Europe's London headquarters.

"The big IPs are becoming bigger, whether that's FIFA, Call Of Duty or Assassin's Creed, those titles are just becoming bigger and bigger and it's harder and harder to break into the market with new IP. And there's a big transition at the moment," Post said, when asked about the bigger changes in the industry that had resulted in the decision.

"We had to make the changes we are making right now, in order to be better prepared for the future"

He added that the shifting nature of the games industry could be seen in the success and number of new platforms, Android, iOS and Steam, and business models.

"It's still a fantastic business, because if you combine everything it's massive and it's growing. But we had to make the changes we are making right now, in order to be better prepared for the future."

11 Comments

Bruce Everiss Marketing Consultant

1,692 594 0.4
As widely predicted and inevitable. Too much money lost.

Sad for the many Sega people I know. The best of luck to all of them.

How many more of the big traditional console publishers will end up like this?

Posted:2 years ago

#1

Sam Maxted Journalist / Community / Support

155 65 0.4
Basically for us it's putting a lot of focus into those studios and into their IPs. So Total War coming out of Creative Assembly, Football Manager coming out of Sports Interactive, so we want to diversify, so we want to have an increased focus on those brands.
Does that sound contradictory to anyone else, or is it just me?

Edited 2 times. Last edit by Sam Maxted on 28th June 2012 4:11pm

Posted:2 years ago

#2

Terence Gage Freelance writer

1,288 120 0.1
"And digital still means 50 - 75 releases every year"

Really?! Presumably they're counting re-releases of Mega Drive/Genesis games in that number, but even so suggesting they've had anything like 50 releases in the last year seems high.

I take it the Japanese arm of the business will remain much the same? Specifically I'm interested to know if Yakuza Studio will remain. I loved Binary Domain, even though it was a commercial flop.

Anyway, this is a shame, and best of luck to all those affected.

-------------

EDIT @ Sam

"Does that sound contradictory to anyone else, or is it just me?"

I think what they mean is diversify in the platforms and business models they support; that kind of thing. I wonder if a F2P Total War Facebook and/or mobile instalment will appear in the next couple of years.

Edited 1 times. Last edit by Terence Gage on 28th June 2012 4:14pm

Posted:2 years ago

#3
I'm wondering how they want to manage France, Germany and Spain in terms of localisation and product management. Those are the european countries that require their own localisation after all...

Posted:2 years ago

#4

Antony Johnston Writer & Narrative Designer

112 18 0.2
@Terence: I'm not privy to inside information (I wrote BD, but haven't worked with Sega since) but everything I've heard indicates that Nagoshi-san and the Yakuza team are perfectly safe, and almost certainly working on another Yakuza game as a safe bet. I wouldn't hold your breath for a BD sequel, sadly.

Posted:2 years ago

#5

Renaud Charpentier Lead Designer, The Creative Assembly

66 144 2.2
Actually Terence, Total War Battles for iOS released 2 months ago and you will soon be able to play it on Android too. :)

Posted:2 years ago

#6
I just wished the graphical fidelity could have been higher for IOS

Posted:2 years ago

#7

Richard Gardner Artist, Crytek

123 32 0.3
I have being playing Total War for over a decade and to hear its going to get bigger and better is fantastic! I'm really excited about what Creative Assembly does with the Alien IP also. SEGA has some great franchises but has always fell flat on others. Much like THQ it will be great to see SEGA move forward into focusing on core titles. Although on the negative side its sad to see a lot of people losing there jobs. Lets hope the restructure works.

Edited 2 times. Last edit by Richard Gardner on 28th June 2012 11:13pm

Posted:2 years ago

#8

Carl Crawford Studying Bachelor of Information Technology, Otago Polytehnic

18 19 1.1
Such a shame, SEGA is my favourite publisher. I love Binary Domain, all the 'Platinum Games' games and the Yakuza Series.

Posted:2 years ago

#9

Matthew Hill Head of Recruitment, Specialmove

75 26 0.3
A painful but in financial terms at least a necessary step. This mirrors the closure of Euro offices at THQ, Codemasters and others. Interestingly SEGA have mostly "outsourced" distribution to newco's established by their staff - fingers crossed for all affected

Posted:2 years ago

#10

Andrew Goodchild Studying development, Train2Game

1,253 418 0.3
"France, Germany, Spain, AUSTRALIA and Benelux",

Could I point out Australia is not in Europe?

Posted:2 years ago

#11

Login or register to post

Take part in the GamesIndustry community

Register now