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Sega of America downsizing, relocating, and narrowing product lines

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Cancellations are still up in the air

Sega of America, like all companies, has its eyes set on becoming as efficient as possible. Today, the publisher revealed plans to take drastic steps toward that goal by streamlining through downsizing and relocation.

In a notice to shareholders, Sega announced that its board of directors decided on a reform in structure that would see its San Francisco-based videogame software office closed and moved to Southern California by Summer 2015. It's also soliciting voluntary retirement to approximately 300 employees.

Apart from relocation and reduction of work force, Sega's also likely cancelling some products. The specifics aren't mentioned, but the majority will come from "Amusement Businesses," and Sega intends to "narrow down product lineup, and withdraw or consolidate and downsize some of the services."

It's unknown how this plan will affect software for consoles and PC. Sega lists smartphone and PC online gaming as areas under its "Digital Games" banner, and identifies the division as a growth area. However, it also intends to promote profits through "improving management efficiency" and "redistribution of management resources."

We've reached out to Sega for comment and clarification as to this notice -- especially regarding whether this will result in the delay or cancellation of any already-announced games, or if this will cause any layoffs or studio closures at Sega subsidiaries. We'll update this article if we receive a response.

Notice of Implementation of Structure Reform in SEGA Corporation [SEGA Sammy Group via Twitter]

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Brett Makedonski
Brett MakedonskiManaging Editor   gamer profile

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Filed under... #Industry Bull #Money #Sega

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