Sega faces title cancellations and job cuts
While, thankfully, it’s nothing like the full closure of a studio, Sega has revealed that due to poor performance of various titles and changes in the gaming market, particularly across North America and Europe, they will be cancelling a number of titles and will likely include layoffs as the company goes under some restructuring.
Franchises such as Sonic the Hedgehog, Total War and Football Manager have remained strong sellers, and are among titles that are likely to stay as Sega attempt to deal with the result of their internal financial reviews. However, titles that will be axed have not as yet been confirmed.
Interestingly, Sega are citing changes to the market in terms of increased digital sales over more traditional retail sales as an upcoming focus to their business, lending further evidence to the fact that digital sales of games are truly beginning to cripple publishers and studios who fail to take the necessary steps to evolve with the changing market.
As this sad news adds to the increasing number of publishers and studios reporting profit loss and, in some cases, closure, I have to be honest and am glad that Sega will be axing some titles as I think I’ll be happy to not see any more copies of Mario and Sonic At the Olympic Games on retail shelves.