News

Sega closing some European offices

Sega has confirmed that it is to close offices in France, Germany, Spain, Australia and Benelux as a result of its recent restructure.

The news comes three months after parent company Sega Sammy said it would restructure its loss-making videogame business "due to the challenging economic climate and significant changes in the home videogame software market environment in the US and Europe."

The closures mean Sega has had to enlist the services of thirdparties to handle distribution in Europe and Australia. Koch Media will assist in Germany, Switzerland, France and Spain; with Level03 Distribution handling Benelux and 5 Star Games taking Australia. Other territories will operate as before.

Jurgen Post, COO of Sega Europe, said: "Sega is entering a new and exciting phase that will position the company as a content-led organisation maximising sales with strong and balanced IP such as Sonic The Hedgehog, Total War, Football Manager and the Aliens franchise.

"The company will benefit from a clear focus and realigned strategy for our digital business and packaged goods, and we are confident that this will lead to a successful future."

This, the first official consequence of the restructure, isn't as bad as we'd feared; if Sega is to increase its focus on digital goods then it makes sense for it to reduce its distribution overheads.

Worse, though, may be still to come. In April, Sega Of America warned that jobs would be lost and projects cancelled as a result of the restructure. The release of Anarchy Reigns was delayed indefinitely in the west, but Platinum Games' multiplayer brawler is now due in the first quarter of next year. An unannounced Bayonetta sequel has been canned outright, according to reports.