Sega to Cancel Games, Layoff Employees - Sonic, Total War, Aliens, and Football Manager are Safe
The news just keeps going from bad to worse for some publishers. THQ has already been hit hard, and now it looks to be Sega's turn. Sega is reporting it will restructure its US and European businesses after an expected loss of $86 million. Sega still expects to have a profit of around $243.5 million, but even that is a 50% loss from its earlier estimates. As a result of the restructuring, Sega will cancel some games already in development and layoff some employees. The QA department at Sega of America has been completely shut down and the QA at Sega Europe will handle duties for both regions. Other departments will also receive some layoffs, but hopefully none will be hit as hard as the QA one.
As for the games, the franchises considered safe are: Total War, Sonic, Football Manager, and Aliens. Those franchises are the strongest IPs for Sega and it expects to have solid earnings from them. The good news is we should finally be receiving the oft-delayed Aliens: Colonial Marines, so at least we have that. Franchises outside these four will no longer be published by Sega, which leaves a fair number of titles in limbo. Hopefully some other studios can take over publishing reins in the mean time.