Sega laying off 560 staff, closing 110 amusement facilities

by Alexander Sliwinski { Feb 10th 2009 at 10:28AM }

Sega is set to reduce its workforce by 18%, which represents approximately 560 jobs. Edge reports that if all goes according to plan, Sega may only see a one-time loss of ¥4 billion ($43.8M), with an annual savings of ¥5 billion ($54.8M). The company also plans to close 110 amusement facilities, along with reducing research and development by 20?%.

It is unclear whether Sega's axing of 560 jobs includes the 30 Sega America staff let go last month. Sega revealed that it lost $119 million in the first three quarters of the fiscal year, with full year expectations not looking any brighter. We'd shed some tears out of empathy over these latest layoffs, but apparently tears are currently sold out and on backorder in this economy.

Tags: business, economy, layoffs, sega

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Reader Comments (Page 1 of 1)

TheBigOAnime @ Feb 10th 2009 10:37AM

Quit fucking up Sega and do something worthwhile in gaming. I really don't want you to shut down.

WINterfang @ Feb 10th 2009 10:39AM

They did, now why didn't you buy Valkiria Chronicles jerk?

TheBigOAnime @ Feb 10th 2009 10:42AM

I don't own a ps3 that's why...

Now that you mention though I do feel bad about that game. I mean if it was on the 360 I would have bought it on day 1. I'm loving the RPGs this generation. I've always been more of a shooter, mario, adventure, racing gamer. But beginning last year I've gotten into RPGs a lot and I think the genre is one that is under appreciated by a lot of people.

Maybe Sega will port VC but prob not.

So when Sega releases a good game for the 360 I'll support it asap.

WINterfang @ Feb 10th 2009 10:51AM

Then buy Phantasy Star Zero or PSP or Bleach DS, or Virtua Fighter 5, or Condemned 2 etc...

They have release pretty good game last year, it's not SEGA's fault the economy is pretty bad and they lose money out the arcade scene and pachinko machines.

Baby J Penn (PSN johnnynumber5) @ Feb 10th 2009 10:51AM

They have been releasing good games for a while now. Valkyria Chronicles, Condemned I & II, The Club & The new released genesis compilation. Let's also not forget we can look forward to Yakuza 3 (!!!!!), Alpha Protocol, Stormrise, Bayonetta, Conduit & Madworld. SEGA has been doing well for a bit now in terms of it's quality titles. I'm not saying their games are the best in the industry but they are certainly not "fucking up".

Noshino @ Feb 10th 2009 11:32AM

Sega has been an amazing publisher/developer this generation. Unfortunately for Sega, although the merger with Sammy was welcome at the time and helped them to get back on their feet, now they are taking the hit for them, the pachinko business has gone down a hell lot.

No one should be blaming their software for their situation, other than the fact that Valkyria could have had more money on advertising, I think most of their games have performed very well.

Chase @ Feb 10th 2009 4:06PM

I would buy Valkyria Chronicles if it came out on the 360. ;_; plz dun dye sega

slycooper_rocker (The Agent of Orange) @ Feb 10th 2009 10:30PM

sega, port valkyria. more sales would help out the game and you. like sony said, exclusives are gonna have to die out eventually (non-first party of course).

WINterfang @ Feb 10th 2009 10:38AM

God I hate this economy.

Baby J Penn (PSN johnnynumber5) @ Feb 10th 2009 10:40AM

Recession proof my ass.

Juthan (PSN: HairyToeKnuckles) @ Feb 10th 2009 10:41AM

I only wish I could buy all the copies of Valkyria Chronicles out there. It really was one of the best games of last year.

Oh well, I hope these poor people find gainful employment soon.

samfish @ Feb 10th 2009 10:48AM

I hope this doesn't end up killing the Japanese arcade scene. Even though the odds are long, I remain hopeful that someday that model will somehow be able to translate to the US...but it won't do much good if the last place to really play lots of arcade games in the world collapses :(

Baby J Penn (PSN johnnynumber5) @ Feb 10th 2009 10:59AM

I don't know how old you are but we used to have a lot of large Arcades in this county. The golden ages of the arcades in America were the 80's and early to mid 90's. I remember the arcades last hurrah was around the time of Mortal Kombat 2 & Killer Instinct - at least in my area.

WINterfang @ Feb 10th 2009 11:07AM

I haven't being part of the Arcade scene at all but I remember playing KOF 06 at my local " Colmado" .

Zertoss @ Feb 10th 2009 11:13AM

At least we still have Dave & Busters. Not as great as arcades used to be, but beggars can't be choosers (unless Chuck E. Cheese's becomes the only choice). I guess there's also Disney World and presumably Disney Land. They've got a really nice arcade, but the admission to get in is awfully high.

samfish @ Feb 10th 2009 11:25AM

I remember the arcades very well from the 80's and 90's. My dad was the regional accountant or something for Chuck E Cheese, so I went there and to a lot of other arcades a lot when I was growing up. I guess there's Dave & Busters, but at least the one I've been to really isn't the same experience by an stretch of the imagination. They have no fighters, beat 'em ups or shmups, as far as I'm aware. It's all racers, sports games and ski ball...and a few light gun games, I guess.

I think about starting my own arcade sometimes. I suppose if I lose my job due to this economy (which is a very real possibility, unfortunately), I might give it a shot, crazy as it would probably be.

JRM @ Feb 10th 2009 6:17PM

I don't think this will kill the Japanese arcade scene, but it's a step towards dying like its american counterpart. They will likely close the smaller Sega Joypolis' in the smaller towns, where highschool kids would gather after school, but retain the larger ones with the rides in Tokyo and Osaka. This would be just like dave and busters, where only the big complexes can stay profitable.

Mr Khan @ Feb 10th 2009 11:30AM

This is why they won't be coming back to the console industry anytime soon (as speculated by all that stuff they trademarked)

Sad to see their amusement centers go, though, some really top-notch stuff, from what i recollect. I wonder if any of them had Sonic the Fighters...

Nigeria @ Feb 10th 2009 11:33AM

Oh dear. I wonder how much this is down to the diminishing takings of pachinko slot machines on the Sammy side, rather than the usual, shoddy Sega management. But sales of Sega software - Sonic/Mario Olympics excluded - have been less than stellar this year, so.

Scaling back on the HD projects and a cessation of the constant outsourcing would be a good start to claw back some money, I suppose. As would shutting down Secret Level. They're a bit shit.

Mr Khan @ Feb 10th 2009 12:13PM

Secret Level is in over their heads, they're nowhere near the talent level you need if you want to make PS360 games and have them succeed.

That said, i would want them to stay the hell away from Wii also, so pulling the plug might be the best solution.

LeadBoxx @ Feb 10th 2009 11:44AM

I can't take much more of this! I am going to go crazy! Wish everybody who got laid off good luck.

dabamf @ Feb 10th 2009 11:46AM

I support Sega! Any company that makes "Typing of the Dead" is A-OK in my book.

Dralthi @ Feb 10th 2009 12:17PM

I blame Sonic.

If Sega actually listened to its Sonic fanbase and made a good Sonic game for once they'd definitely see a rise in profits.

WINterfang @ Feb 10th 2009 12:22PM

Sonic Unleashed has sold more than 2 million copies.

And fans don't know what the hell they want anyway.

mazza_man @ Feb 10th 2009 1:28PM

I am a fan and I know what I want! A 2D Capcom-esque back to basics game!

Not suprised about Sonic Unleashed...it's had a lot of promotion here in the UK, and selling for £15 cheaper than the average Wii game.

fred @ Feb 10th 2009 7:15PM

"made a good Sonic game"

They have. Reviewers are just so up their own asses that they automatically slap a title of FAIL on anything 3d sonic related

slycooper_rocker (The Agent of Orange) @ Feb 10th 2009 10:33PM

@ fred

no, they slap a FAIL on sonic that doesn't have the classic gameplay. they praised the racing part of sonic, they just hated the werehog parts.

heyburt @ Feb 10th 2009 12:48PM

oh hai, we are sega... we waste all our money on that stupid hedgehog and completely forgot that shenmue was one of our most popular and widespread franchises which could actually pull us out of the shit and lead to the release of another amazing console like the dreamcast... actually sod the console start releasing quality titles again instead of sonic 235553454 editiion now with added springs.