SEGA Studios Australia is now among the latest companies to feel a pinch in profits, resulting in a 37 member layoff. Now in its ninth month of consecutive profit decline, SEGA is forced to take an offensive stance to stop the hemorrhaging. A direct email from SEGA Studios Australia stated:
“…it is essential to look to the future and take steps to ensure long-term growth and success. The rise of digital gaming provides an opportunity to align the studio with a rapidly growing market at a time when the games industry is undergoing a significant transition. To this end, we can confirm that SSA has signed a multi-product deal focussing across the digital marketplace. We have commenced development on these titles and will announce more details in the near future.
As part of this focus on digital avenues, there is a requirement to re-structure the studio resources accordingly and regrettably, we are announcing the loss of 37 staff. The decision to downsize was not taken lightly but this strategic re-structure will ensure we have a more effective and agile team that will enable us to quickly adapt to consumer needs and deliver strong content across multiple digital platforms. We thank those team members affected for their contributions and wish them well in their future endeavours.”
Ouch.
SEGA Studios Australia will be monitored in the near future to see if these drastic staff cuts will prove beneficial for company profits. Some of SSA’s productions include Rome: Total War, Medieval II: Total War, and Stormrise. Best wishes to those who didn’t make the cut.
