Clearly, the world of video games is going through a lot of challenges and we have just learned that SEGA has just made a very tough decision. Another hard blow…
SEGA, one of the major players in the video game industry, is going through a period of significant change. Particularly with the announcement of layoffs affecting several of its branches in Europe. Including renowned development studios such as Creative Assembly, known for the Total War series, and Hardlight, behind the Sonic Dream Team development team. Difficult news to take.
A new disaster for video games
These decisions affect approximately 240 positions across SEGA Europe, Creative Assembly, and to a lesser extent at Hardlight. It should be noted that Sports Interactive and Two Point Studios, also under the SEGA Europe umbrella, are not mentioned in this announcement. As IGN reports, although Sega did not specify the exact number of layoffs per studio, the company stressed that Creative Assembly continues development on several projects. Including new Total War titles as well as an as yet unannounced project.
Additionally, SEGA confirmed the sale of Relic Entertainment. The developer behind the Company of Heroes and Dawn of War franchises. Jurgen Post, head of SEGA Europe, communicated these changes in an email to staff. Explaining that the sale of Relic Entertainment is part of a transition process towards independent management of the studio, thus detaching it from the Sega group. This approach is supported by SEGA. The publisher also expresses its support for Relic in this new phase. For its part, Relic asserted its independence thanks to the help of unidentified external investors. While committing to continued development and support of Company of Heroes 3.
A big blow for the market and for SEGA
Post insisted on the need for these layoffs to ensure the company’s future in the video game sector. Emphasizing the importance of focusing on key skills and adapting to a changing economic landscape. He also expressed an apology to staff who may have learned of this news through social media or the media. Before the official communication from SEGA, highlighting the complexity of the situation due to legal obligations in Japan.
SEGA’s commitment to the employees affected by these layoffs was highlighted. Promising support including severance packages, career coaching and access to advice. These measures are part of respecting regional processes regarding workforce reduction. With a promise of transparency and individual communication with those affected. This round of layoffs at SEGA Europe, along with other recent disruptions in the video game industry, illustrates the challenges developers face in an increasingly competitive and changing environment.