News Article

"Small" Number Of Staff Laid Off At Sega Of America

Posted by Damien McFerran

Exact number unknown

It has been confirmed that Sega of America has laid off a number of its staff. VentureBeat has reported that the number of employees affected is "small", but the exact figure is currently unknown.

A spokesperson for Sega said:

As the gaming industry continues to evolve, companies must adapt and adjust in order to compete and succeed in an ever-changing environment. As a result of this, Sega of America has recently undergone a restructure that will enable the company to focus efficiently on developing new and existing content across digital platforms as well as continuing to focus on key brands for packaged goods.

The company — which was once famous for being Nintendo's biggest rival — has recently moved into the realm of digital titles, with several key releases on iOS and Android. Sonic the Hedgehog remains Sega's most well-known asset, but other franchises — such as Football Manager and Total War — are growing in stature.

Sega recently purchased Atlus, which is famous for its RPG titles.

As ever, our thoughts are with those impacted at Sega of America. Hopefully this is merely minor restructuring which will enable the company to become even more successful in the future.

[via venturebeat.com]

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User Comments (27)

faint

#1

faint said:

Buy a huge company and then fire original employes to save money? LAME

MAB

#2

MAB said:

You don't know... Those people might not have been very good at their jobs ;)

unrandomsam

#4

unrandomsam said:

If you are spending more on marketing than actually creating the stuff you are marketing you are doing it wrong. Better the product the less marketing it needs.

unrandomsam

#5

unrandomsam said:

It still astounds me that Retro is the only Nintendo development team outside Japan. All the rest is dead weight.

Beetlejuice

#9

Beetlejuice said:

Hopefully they were the employees who decided that the new Sonic game can't be played in single player using the pro controller.

unrandomsam

#10

unrandomsam said:

@faint They probably spend 100 times more on marketing (That doesn't work) than development. Having the best games that are on no other system and loads of them is all the marketing that would be needed these days.

MAB

#11

MAB said:

@Dambuster I'm at the top of the game in my industry so I will never get the chop... And if I do then I can easily move into another job because like @ogo79 said it best 'I know I got skillz' baby ;)

bezerker99

#12

bezerker99 said:

Laying off people in order for the company to survive is almost standard in today's economy. It's happening everywhere, not just in the video gaming business.

Samurai_Goroh

#13

Samurai_Goroh said:

@bezerker99 Sic transit gloria mundi. That doesn't make it right, though. At least, Iwata seems to know the value of the employees on his company, as seen by the fact that he is one of the few CEOs more willing to cut his own pay-check than sending competent people to the unemployment cue due to bad management of which they took no part of.

Cuddles

#17

Cuddles said:

"As the gaming industry continues to evolve, companies must adapt and adjust in order to compete and succeed in an ever-changing environment" - every time I read something like this, I just imagine them going to iOS and Android platforms. :(

Jellitoe

#19

Jellitoe said:

This is most likely positions that are overlapping with some of the jobs from their new acquisition. Middle management types.

CaviarMeths

#20

CaviarMeths said:

@unrandomsam Are you aware of how much marketing costs? Pretty much any major publisher is spending tens, even hundreds of millions of dollars per year on it. No, superior products don't market themselves. That's preposterous.

ACK

#21

ACK said:

Wasn't comfortable with Sega acquiring Atlus due to the mismanagement of their once legendary internal development teams. This doesn't inspire confidence.

Platypus101

#24

Platypus101 said:

@MadAussieBloke so what happens when the market fails, you lose your job and there are no other jobs? Everybody says that, but until it has happened to you... Well, that's a different story then.

To the rest, sometimes (most of the time) when companies that really don't have a product buy other companies (to show growth, please don't question my knowledge, I cut myself from a job! So in essence, I've done this to myself.) they simply release the NON-ESSENTIAL staff... From both sides! SEGA lost some, but I bet that ATLUS lost some staff as well. It doesn't come down to "skillz".

meltendo

#25

meltendo said:

Sad news...I've been layed off twice in my lifetime. That said, my dream news: Sega announcing Phantasy Star Online 2 for the Wii U. or 3DS. Sega cancelled their plans to bring that game to the West on the PC and Vita. PSO is still an amazing game in the hearts of Dreamcast AND Gamecube lovers. Wouldn't it be a great game series to have under the Nintendo banner?

thatguyEZ

#26

thatguyEZ said:

This is what sketches me out about Sega and their localization 'efforts.' But I really just hope this isn't foreshadowing for the fate of Atlus USA.

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