Sega is undergoing structural reforms, leading to the cancellation of multiple titles from its European studios. Find out what titles were affected, what influenced Sega’s decision, and more.
Sega Implementing Structural Reforms
HYENAS And Other Unannounced Titles Are Canceled
HYENAS, an extraction shooter that was being developed by Creative Assembly Games, was just canceled. It was a live service online multiplayer game that just concluded its closed beta test earlier this September. The development team announced the game’s end and thanked the playtesters and community for their support.
On X (formerly Twitter), Creative Assembly said that the cancellation of HYENAS may cause the loss of several jobs. It added that members of affected teams will be put into other roles within the studio to minimize layoffs.
Aside from HYENAS, development of several unknown titles were also halted. No information pertaining to these unannounced titles has been released by Sega as of writing.
These cancellations were made public in a notice by SegaSammy Holdings, the holding company for Sega. They revealed that there has been an economic downturn due to inflation in the European region which has lowered the profitability of their European studios. From those findings, they have made the decision to implement structural reforms "aimed at increasing efficiency" and to "reduce the fixed expenses." These reforms have led to the aforementioned European titles being reviewed and canceled.
What’s Next For Sega?
Within the details of the public notice, they mention that with the implementation of these structural reforms, they will expect to "record losses of approximately 14.3 billion yen for the fiscal year ending March 31, 2024." Though the recorded loss will be concerning, there have been no changes to the full-year consolidated operating results forecast for now, as stated in the notice.
This could be attributed to their other business fronts performing well. These other divisions include Amusement Machine sales, Animation and Toys, Pachislot, Pachinko Machines, and the Resort Business. "The full-year consolidated operating results forecast for the fiscal year ending March 31, 2024 will be revised as necessary, after closely observing these conditions as well."
Sources:
SegaSammy Holdings Public Notice Regarding Implementation of Structural Reforms
