SEGA Restructuring Game Business - Focusing on Online Games

[Henry Spencer]

Guess that's that, then(?):

SEGA has just released its financial report for the second quarter, and things aren't looking to great for the one time video game giant. At the six month point of the fiscal year, SEGA has a net loss of just over ¥2 billion, or around $18.5 million.

The report specifically mentioned low sales of physically packaged games as a factor in the poor performance. As such, the company's entertainment division (SEGA Sammy has many other ventures) is being restructured to focus primarily on online gaming. This likely means we'll see an increase in "digital only" release for SEGA games in the future, and a stronger push for mobile gaming rather than in-store AAA releases.

http://www.neogaf.com/forum/showthread.php?t=923896

http://www.gamnesia.com/news/sega-posts ... FakqjSsWSo

It's a shame nobody bought their console games - gamers only have themselves to blame, really. Yeah, they've made some really shitty decisions the past couple of years (where's Phantasy Star Online 2?), but all of those games they developed/published at the start-mid of last gen? Valkyria Chronicles, Resonance of Fate, Binary Domain, Anarchy Reigns, Yakuza 3 & 4 etc? They all sold like shit and it's really annoying...alas, SEGA are now on auto-pilot and are going to crash.

Looks to me like SEGA might actually leave the likes of Creative Assembly and ATLUS alone for now (thank god) but who knows further down the road? They too might become affected by these changes...

please god no...

[Axm]

At this point if Sega doesnt release a Shenmue game in the next couple years then I hope they just leave the console games business entirely. That way atleast they can hand off use of their IP's to the likes of Nintendo, Sony, Capcom, Atlus etc
Atleast then we might actually get some decent "Sega" games.

[BlueMue]

People have been speculating about this for a long time. Something like that has been predicted by many people.
The guess was and is that they go digital only or even mobile only with the exception of one or two Sonic games per year as the only physical releases in stores. The sad reality is that the make games to earn money and if they don't make enough off it they have to restructur their company. Business can be a shitty thing.

I wouldn't say that this is the nail in the Shenmue coffin as there is always a possibility things can change again or maybe they won't give up the physical releases after all. Of course it's not just about the release strategy but also about their financial situation. But if they do shift focus on online stuff then they'll likely improve it, so...

[JohnBlack]

They all sold like shit

Because new SEGA games are shit. I dont mean they are really bad, but most of the SEGA publishing seems too mediocre. But nowadays stores dont work like in 1995. Back than you go to store, watch game covers and buy game. Now everyone can read reviews and decide, what to buy for 70$.

They published London 2012 Olympic games, every gamestore was full of it, but its a ultra bad game. And there are a lot of games like this. I think only ATLUS, Creative Assembly and Sports Interactive are really profitable.

[elfshadowreaper]

They all sold like shit

Now everyone can read reviews and decide, what to buy for 70$.

You hit it right there. I work too hard to waste $60-$70 on a brand new game that I'm skeptical about whether it's going to be good anymore. I hardly ever buy a game on release day unless I've played previous games and this one holds up, or I just know I'm going to have fun with it regardless of whether it's GOT quality or not.

Take RE6(not SEGA, but it illustrates my point). I wanted to play it on day one, but I just didn't like the direction the series had been going and thought this would continue the trend. So I got it a year later for $10. It was well worth the wait. A fun game, but glad I didn't have to pay $60.

I wish they'd just auction their IPs and let people do with them what they will. That is, of course, if Yu is still tied to Shenmue. Nintendo really just needs to buy them and release ALL Nintendo and Sega retro games on a Netflix-style system for the Wii-U and it's successor for a monthly fee.

[Fenix]

Actually that's what they deserve.

When I'm normally asked my opinion about SEGA I usually say I'm not fan of SEGA but fan of AGES, lol.

[Nuke]

As long as "mobile games" doesn't consume everything and "digital only releases" (that is, on PC and console) stays good, I don't really care that the physical discs are going away. Then again, I don't have a recent console.

[Esppiral]

Pretty sad they are focusing on online games, but! maybe this can resurrect Shenmue online, which looks like crap, but is better than nothing.... I guess...

[MiTT3NZ]

It's a shame that SEGA seem to be completely unaffected by the old saying "Gotta spend money to make money".

Honestly though, I'm surprised they haven't decided to cut their losses and just sell either all their IPs or SEGA as a complete brand. It just doesn't seem to be working out for Sammy in the video game market at all.

[Calshot]

Guys, this just means Shenmue Online is going to come out now.

[ys]

Guess that's that, then(?)

Despite better (semi-stable) periods it seems as if they never really recovered after the Dreamcast after all.

Yeah, they've made some really shitty decisions the past couple of years (where's Phantasy Star Online 2?)

Indeed. Not a word about it while changing things to prevent non-Japanese from getting in. Understandable in a way since it gives them zero income from the in-game store.

but all of those games they developed/published at the start-mid of last gen? Valkyria Chronicles, Resonance of Fate, Binary Domain, Anarchy Reigns, Yakuza 3 & 4 etc?

I suspect that a title like Shenmue 3 could actually have done better sales wise than those games. Even if I do like Yakuza I have always found it less polished compared to Shenmue. One thing is that it doesn't "flow" as well which could put off a more casual audience.

They published London 2012 Olympic games, every gamestore was full of it, but its a ultra bad game. And there are a lot of games like this. I think only ATLUS, Creative Assembly and Sports Interactive are really profitable.

And their games might be good but don't really feel like "Sega stuff", if you know what I mean? Football Manager fans think of SI, not Sega. I wonder then how a classic team like AM2 is doing considering that they worked on Hatsune Miku games?

[Oppy]

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