Layoffs as unexpected as many for a studio which is now instructed to “ focus on its core franchises including Company of Heroes. A somewhat surprising comment given that the Vancouver studio has never been known to scatter, even though it answered Microsoft’s call to develop Age of Empires 4 and took a detour to Warhammer 40,000 to release Dawn of War 3 in 2017. One thing is certain, the lukewarm reception the PC community has given to Company of Heroes 3 will have made Sega understand that the PlayStation and Xbox ports of this same game, expected on May 30, will not change much in the studio’s situation.
The Hedgehog’s Penalty
” At a time when external factors are impacting our industry more than ever, the difficult decision to restructure was made in order to be able to focus as much as possible on the core Relic franchises. Sega is in a healthy financial position and remains fully committed to supporting and investing in Relic Entertainment and the franchises for which it is responsible, including the critically acclaimed Company of Heroes series. We are confident that after this necessary restructuring, the studio will be in a strong position to continue delivering exceptional experiences to gamers around the world. commented Sega in its communicated. Recall that Sega had acquired Relic in 2013, as part of the bankruptcy of the publisher THQ, former owner of the studio founded in 1997.
On LinkedIn, the general manager of the studio, Justin Dowdeswell, provided some additional elements to explain the factors of such a situation. ” As we’ve discussed in previous townhalls and as we’ve seen across the tech industry, the past year has been incredibly challenging. The combination of significant project delays, rapidly rising costs, high inflation and fluctuating exchange rates have had a negative effect on our business. As a result, the measure of success for a studio of our size has increased, which has increased the pressure on our titles to succeed in an increasingly competitive market.
All of these factors led us to make the decision, together with SEGA, to significantly reduce the size of our studio and refocus our efforts. We will continue to support our major titles, including Company of Heroes 3, and our upcoming projects to ensure they are successful. We believe that by making this very difficult decision now, we can secure a strong future for our studio and our business.
I know that does not make things any easier for those who are going to leave us. Your dedication and hard work has helped us develop and deliver games, and helped make this studio a great place to work. We will do everything in our power to treat you with respect, communicate openly with you and support you. »