Sega reveals new development studio structure

Sega has revealed the structure and names of its development studios after its planned reorganization. Under Sega's new studio structure, there will be seven development studios--Hitmaker, Sonic Team, Amusement Vision, Smilebit, Sega-AM2, Wow Works and a new studio named Cinematic Online Games.

Sega Rosso (Sega Rally, NASCAR arcade) will be merged and absorbed into Hitmaker (Virtual On, Crazy Taxi) , and United Game Artists (Rez, Space Channel 5) will be merged and absorbed into Sonic Team (Sonic the Hedgehog, Phantasy Star Online). Smilebit (Jet Set Radio) and Amusement Vision (F-Zero AX, Super Monkey Ball) will not be merging as previously reported, but a part of Smilebit's operations will be transferred to Amusement Vision. Sega-AM2 (Virtua Fighter series, Shenmue series) will stay intact without any changes. Overworks (Shinobi, Sakura Wars) will merge into Wow Entertainment (House of the Dead, Vampire Night) and Wow entertainment will change its studio name to Wow Works. A new company tentatively named Cinematic Online Games will be established. Cinematic Online Games's president will be Yu Suzuki, and 50 employees are scheduled to be present at the studio launch planned for October 1.

Paperwork for the merger will be signed on August 18 and given approval in the stockholders meeting on August 19. The mergers are scheduled to take place later on October 1. Sega does not plan to lay off any employees in the reorganization, meaning that 191 employees will be switching studios in the merger (Sega Rosso: 45 employees, United Game Artists: 40 employees, Overworks: 96 employees). Sega will release more specific details on the studios at a later date.