Sega laying off 560 staff, closing 110 amusement facilities

by Alexander Sliwinski on Feb 10th 2009 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.

Source

Tags: business, economy, layoffs, sega

Reader Comments (29)

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

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.

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".

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.

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

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).

Recession proof my ass.

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.

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 :(

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.

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.

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.

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.

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...

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.

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.

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

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

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.

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.

"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

@ 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.

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.

I don't recall Shenmue being 'popular'. Yes it was well talked about among gamers, don't I don't think many people actually bought it, and that is, ya know, what counts.

Correct me if I'm wrong and it actually sold a zillion copies lol.

Dammit Joystiq! Why did you have to write a depressing post coupled with a hilarious picture?! Now I feel like a dick for laughing.

yea,the pic is hilarious,the story is not.

I'll be doing my part by buyingthe Ultimate Genesis Collection today after work!

Damn, does this mean Gameworks is going to be closing? The one in Seattle isn't the greatest arcade in the world (that would be Ground Kontrol in Portland) but arcades are becoming so rare that I still like having it there.

That is to bad. I hope everyone that is being let go can find work fast.

Sorry, you must be logged in to leave a comment.

Breaking News

The most popular posts
in the last 7 days

Vita 'UMD Passport' won't be offered in US 220 comments
Kingdoms of Amalur: Reckoning review: A tempting fate 153 comments
David Jaffe leaves Eat Sleep Play, layoffs hit developer [Update] 108 comments
Don't call it a remake: Final Fantasy X is a 'remaster,' to be clear 95 comments
Battleship movie adapted into FPS by Double Helix 93 comments

Sega laying off 560 staff, closing 110 amusement facilities

Reader Comments (29)

Posted: Feb 10th 2009 10:37AM (Unverified) said

Posted: Feb 10th 2009 10:42AM (Unverified) said

Posted: Feb 10th 2009 10:51AM Johnnynumber5 is powered by cell said

Posted: Feb 10th 2009 11:32AM (Unverified) said

Posted: Feb 10th 2009 4:06PM (Unverified) said

Posted: Feb 10th 2009 10:30PM Sly C said

Posted: Feb 10th 2009 10:40AM Johnnynumber5 is powered by cell said

Posted: Feb 10th 2009 10:41AM HairyToeKnuckles said

Posted: Feb 10th 2009 10:48AM samfish said

Posted: Feb 10th 2009 10:59AM Johnnynumber5 is powered by cell said

Posted: Feb 10th 2009 11:13AM Zertoss said

Posted: Feb 10th 2009 11:25AM samfish said

Posted: Feb 10th 2009 6:17PM JRMG said

Posted: Feb 10th 2009 11:30AM Mr Khan said

Posted: Feb 10th 2009 11:33AM Nigeria said

Posted: Feb 10th 2009 12:13PM Mr Khan said

Posted: Feb 10th 2009 11:44AM Revving Injuns said

Posted: Feb 10th 2009 11:46AM dabamf said

Posted: Feb 10th 2009 12:17PM Dralthi said

Posted: Feb 10th 2009 1:28PM Kaminaaa said

Posted: Feb 10th 2009 7:15PM original fred said

Posted: Feb 10th 2009 10:33PM Sly C said

Posted: Feb 10th 2009 12:48PM (Unverified) said

Posted: Feb 10th 2009 1:30PM Kaminaaa said

Posted: Feb 10th 2009 1:54PM MrHashbrown said

Posted: Feb 10th 2009 2:56PM (Unverified) said

Posted: Feb 10th 2009 2:15PM Levi said

Posted: Feb 10th 2009 3:46PM Panic Blitz said

Posted: Feb 10th 2009 10:14PM Zombienutz said

Info

Description

MSRP

Release Date

Genre

Developer

Publisher

Rating

Breaking News

Double Fine Kickstarter passes $1 million in under 24 hours, breaking yet another record

Featured Stories

Ghost Recon: Future Soldier brings information warfare to the front

Rhythm Heaven Fever review: Crazy into you

Remedy not done with Alan Wake

The most popular postsin the last 7 days

Engadget

TUAW

Massively

WoW

The most popular posts
in the last 7 days