Sega to close five European, Australian offices

Publisher’s streamlining strategy sees it shut down offices in France, Germany, Spain, Australia, and Benelux; outsourcing distribution to third parties.

Sega will shut down five publishing offices on July 1, the firm announced today, and will be outsourcing distribution in these regions to third parties. The move will not affect developers, who continue to work on Sega's key titles.

Sega will close offices in July.

"Sega is entering a new and exciting phase that will position the company as a content led organisation maximising sales with strong and balanced IP such as Sonic the Hedgehog, Total War, Football Manager and the Aliens franchise," Sega Europe COO Jurgen Post said in the company's announcement. "The company will benefit from a clear focus and realigned strategy for our digital business and packaged goods and we are confident that this will lead to a successful future."

The territories to be shuttered are France, Germany, Spain, Australia, and Benelux. Distribution responsibilities from the five offices will be assumed by Koch Media, Level03 Distribution, and 5 Star Games, while all other territories will continue to be managed by Sega's European headquarters in London.

The move comes after an announcement earlier in the year that Sega was halving its expected revenue, predicting losses of $86.4 million. It also cancelled several unnamed titles in response to the "rapid change" occurring in the gaming market.

Sega has confirmed that its plans for distribution and promotion of London 2012 - The Official Video Game of the Olympic Games will not change, and the game will be released as planned at the end of June.

Written By

Want the latest news about London 2012 - The Official Video Game of the Olympic Games?

London 2012 - The Official Video Game of the Olympic Games

London 2012 - The Official Video Game of the Olympic Games

Discussion

0 comments
Crush_Project
Crush_Project

round and round the toilet we go, where we stop? nobody knows...

toyo75
toyo75

SEGA gave us a great game called "Vanquish" a few years ago, unfortunately only few gamers supported and bought the game.

Still waiting for SEGA to give us a Panzer Dragoon or some Shining Force for the current generation of gaming consoles.

onixevil
onixevil

Good job SEGA in keeping the original staff and separate them from the other

kekejefferis
kekejefferis

I'll be suprised if Sega can last another 5 years with the way they are currently going.They have so often disregarded comsumer ideas and needs.They have completely lost touch. Indeed they do have the odd gem or two that they manage to produce but they keep ignoring all their established brands like Shenmue, Jet set radio, Panzer Dragoon, Sega Rally and Daytona. releasing ports on XBL/PSN is not the way to do it, we want more not again!Also my experience with the western Phantasy Star support has left me very bitter towards the way they treat their loyal customers, its all money to Sega and if they have to trample over everyone to get to it then they will.Sort it out Sega its sad to see it go this way.I still own my saturn, dreamcast, megadrive and gamegear and playing them now you wouldnt think the Sega we have now would have produced these...

KimCheeWarriorX
KimCheeWarriorX

seeing sega slowly circling the drain like this makes me yearn for the days of the sega genesis, saturn, and dreamcast. im a bit nostalgic towards sega because my first system was a sega master system and id always been a bit more partial to sega systems while they were still developing them. its really sad to see such a fine game company who had such potential slowly sink in the quicksand. im hoping this isnt the end.

NoelXYeul
NoelXYeul

How hard is it to make a multiplatform "Ultra" PuyoPop Fever? Give it the ability to allow 8 player online play. 7 players offline on the PS3 (since it allows up to 7 players). And release it worldwide. I love that game, and it doesn't seem that hard to develop.

hadlee73
hadlee73

Unfortunately this is just the reality of the current market. No matter how much people may want certain game titles, if their IP isn't strong enough to bring enough sales in the current economic climate then there's no point making them. Its one of the reasons why Nintendo have been so successful by sticking with the same old faces rather than trying something different.

shayan_47
shayan_47

After few years, the only companies that will survive are ACTIVISION and EA

kohle36
kohle36

Nooooooo!!! Now I'll officially never see another Valkyria Chronicles on console. PSP time, I guess? Damn, where do I even get one?

JimmeyBurrows
JimmeyBurrows

Really wish they'd stayed in the console business, Gamegear was basically the best handheld until the psp was made (obviously going too far there, but Nintendo really kept the handheld consoles cheap and crap for a good long while...) and the Dreamcast was basically better than everything, but thanks to poor marketing I didn't even find out about it until they'd gone bust, lol. Pretty sure they could have made something wonderful this gen, but their games are too average to make me see them as outstanding developers.

chevydriver1123
chevydriver1123

Sucks to see this but they got to do what they got to do to stay in business. Also with this news I still don't see how any of the so-called Orbi rumors are true.

Megavideogamer
Megavideogamer

Sega is failing as a third party software developer?. Or it is just a tough ecomony. Hopefully Sega will not completely die out.

NeoIostars
NeoIostars

The biggest problem with Sega, IMO, is that they suck at marketing their games. The Yakuza games, the recent Virtua Fighter 5 FS (which are huge franchises in Japan) was released abroad with nary a marketing campaign in major gaming sites (at least, none that I know of). It's almost as if they don't want people to notice their game.

ItsEvolution
ItsEvolution

Whoring out Sonic for the last 11 years is the only thing keeping them alive.

USDevilDog
USDevilDog

Dear Sega, please give us Skies of Arcadia II, Phantasy Star 5 proper, Streets of Rage 4, Panzer Dragoon 4, and, above all, Shenmue 3. I promise you they will become profitable ventures.

Agelu
Agelu

I wouldn't want Sega to die; but I just find so hypocrite when companies that are going down call their desperate moves "exciting" to the public.

leeko_link
leeko_link

Don't die yet Sega, you still had to give me more of these: Shinobi, Shenmue, Shining Series, Sonic the Hedgehog, Golden Axe, Ristar, Streets of Rage, Vectorman, Last Bronx, Virtua Fighter, Valkyria Chronicles, Skies of Arcadia, Evolution World, Billy Hatcher, Phantasy Star, Daytona, Fighting Vipers, Vanquish, Alpha Protocol, Light Crusader, Panzer Dragoon, Stalker Series, Burning Rangers, After Burner, Bug!, Baku Baku, Seaman, Space Harrier, Outrun, Resonance of Fate, Infinite Space, Altered Beast, The Ooze, Bayonetta, Sands of Destruction, Jet Grind Radio Future, Comix Zone, Virtua Striker, Alex Kidd, Blazing Heroes, Space Channel 5, Samba de Amigo, Thunder Force, ChuChu Rocket!, ToeJam & Earl, Virtua Cop, Yakuza, Clockwork Knight, Eternal Champions, Super Monkey Ball, The House of the Dead, Gunstar Heroes, Guardian Heroes, NiGHTS!, Fantasy Zone, Wonder Boy, Puyo Puyo, Columns, Gain Ground, Thunder Blade, Lord of the Sword, Sword of Vermilion, Super Hang-On, Virtua Racing, Oasis Series, Bonanza Bros., Ecco the Dolphin, Sky Target, Radiant Silvergun, Deep Fear, Crazy Taxi, Madworld, etc.

ratedr89
ratedr89

as long as they dun delay yakuza 5 it's fine

 

Drakillion
Drakillion

Yo SEGA! Yeah, you forgot about Valkyria Chronicles man!

spaceharrier
spaceharrier

@robertwarnes91  I'm in Australia too and completely agree with your comments.  It's not long after launch that SEGA games go to the bargain basement, Downunder..  Added, the online retail space helps out to secure no money to SEGA Australia for all their distribution efforts.  No wonder SEGA Australia is gone now - sad, it only had a short revival for a few years.  I do think that SEGA are thinking right about digital distribution...  That is the first step in the right direction for them..  BUT it's the games that are going to make the difference for their survival.  Only yesterday I was thinking (whilst downloading the Atari app and free games they offered for their 40th birthday) why hasn't SEGA created iPhone/Android apps that collect old IP into one package?  SEGA could create an app for SEGA Arcade, another, SEGA Matser System, another SEGA Mega Drive/Genesis....  Portals to play their games on the go...  cheap and effective money maker to attract like a magnet all their old-skool gamers....?  H-E-L-L-O, SEGA are you listening...? 

sergiodoom
sergiodoom

Golden Axe games for current generation... Sucked!

Shinobi... Sucked!

Sonic... A couple might be worth a try

Every superhero-movie game released by them(Thor, Ironman)... Sucked big time!

I bet Sega doesn't have enough money to buy a sandwich!

robertwarnes91
robertwarnes91

I'm not surprised, since all of Sega's games end up in the bargain bin very quickly. (I live in Australia) I got Rhythm Thief at launch for $60, one month later, EB Games was selling it for $28. Both Binary Domain and Yakuza Dead Souls are $23 at JB, both were originally $80 a few months ago. No body buys Sega games outside of Sonic and their sport titles. That's the issue here. People want familarity, which is why Resident Evil Operation Raccoon City sold millions of copies, despite getting poor reviews.I blame every gamer who buys Assassin Creed and Call of Duty every year and never tries anything new. If you live in North America, please pick up Rhythm Thief when it hits the 3DS on the 10th of July. It's a marvelous game that combines the best of Rhythm Paradise and Professor Layton into one great package.

cjimrun
cjimrun

Having been gaming since the 80s, it's sad to hear more bad news from this giant of yester-year.  

ToTs_00
ToTs_00

Hey Sega you want to make money? Just remake  Panzer Dragoon Saga since not many people want to drop $200 on a used game even if it's suppose to be one of the best games ever,

spaceharrier
spaceharrier

@LindBergh2007 - you mention that 'I will see for myself this summer'.....  I have been hoping to 'see for myself' ever since March 26th 2001 when the Dreamcast was discontinued.  I've been a loyal SEGA fan since The Master System, but honestly, I feel there is nothing left of SEGA.  They have lost their heart and soul....  and a load of good talented programmers in the process....  

 

spaceharrier
spaceharrier

Completely agree with you @TheCyborgNinja - I didn't realise that by moving Anarchy Reigns to the same time as Bioshock, and Last Of Us is a good move at all.  Platinum Games must be annoyed with this - they'l surely sell less games if this is the case.  I'm thinking Vanquish....  Such a good game with horrible sales.  SEGA's business model is all wrong; they can't just keep focusing on re-hashed Sonic games....  That will not support their long term existence.

Roodogs
Roodogs

I love this part, " Sega is entering a new and exciting phase". What office drone came up with that one. What a load of bull crap.

spaceharrier
spaceharrier

SEGA is falling apart....  Don't they get it!?!  Wealth of IP and they wipe their @ss with it rather than using it for good use.  Look at Nintendo's sucessful model you idiots.

spaceharrier
spaceharrier

SEGA is falling apart....  Don't they get it!?!  Wealth of IP and they wipe their @ss with it rather than using it for good use.  Look at Nintendo's successful model you idiots.

LindBergh2007
LindBergh2007

 @toyo75 SEGA is closing 5 European offices that opened in 2005 so they can stop publishing non digital 3rd party content.

 

SEGA doesn't want to stay a 3rd party brand forever. I have no idea why people think they should.

y3ivan
y3ivan

 @USDevilDog panzer dragoon is currently in progress title. It should be out by late 2012 for x360

y3ivan
y3ivan

 @robertwarnes91 Its kinda ironic dont you think. Gamers are screaming for new IPs and new innovation but once its finally out noone buy them. 

y3ivan
y3ivan

 @ToTs_00 Panzer dragoon is currently in progress and it planning to be released sometime 2012 for x360

LindBergh2007
LindBergh2007

 @Roodogs No more 3rd party games that cost too much to make and don't sell because people want consistency and nothing new.

TheCyborgNinja
TheCyborgNinja

 @spaceharrier I completely agree, but I think Nintendo isn't the best example of doing things right... They have a tendency to rehash.

 

Sega has mismanaged things pretty regularly since after the Genesis. The Dreamcast was good, but too little too late. They prove how out of touch they are by choosing to release Anarchy Reigns alongside stuff like Bioshock Infinite and the last of us early next year, as opposed to alongside NOTHING in July.

spaceharrier
spaceharrier

@LindBergh2007 I truly don't know where you get your facts about 'SEGA ORBIT' but I refer you to this: http://gameolosophy.com/consoles/sega/sega-orbi-not-this-again-sega-console-bs-alert/ We'd all love the idea of SEGA back in the console 1st party business but it will never happen in the current state of the division. SEGA Sammy would never pour money into hardware & have to compete again against SONY, Nintendo & Microsoft. The market is now saturated with iOS & Android devices. .....it's good to dream. Pls read the link; it'll make all sense to you after you understand how companies operate.

kekejefferis
kekejefferis

 @LindBergh2007 Thank you for your input, I shall take note of that... In reality though I couldnt give a damn.

Mozuckint
Mozuckint

 @y3ivan To be sure we're on the same page, you're not talking about "Project Draco" Right?

 

That's a spiritual successor of the sorts, made by Panzer Dragoon's creator, but it is not actually tied to Panzer Dragoon itself.

 

Good enough I suppose though.

leeko_link
leeko_link

 @y3ivanThere is no Panzer Dragoon game on the Sega Genesis, perhaps you meant the Sega Saturn.

y3ivan
y3ivan

 @Mozuckint not exactly sure regarding to the plot, it is set in Panzer Dragoon universe, The gameplay is very similiar to panzer dragoon on the sega genesis.So i guess its a sequel/prequel