Sega Leaves Australia, Closes Operations Across Europe

Sega will be leaving Australia and closing several of their European operations in order to refocus their efforts on AAA video game series.

The four key brands Sega will be focusing on going forward are Aliens, Sonic, Total War and, erm, Football Manager. The downsizing will mean that games will no longer be developed by the company in Australia, and that a new company will be handeling Australian distribution.

“It’s about the territories. UK stays as it is, we’ll have some layoffs across the territories of course, but we don’t give out any specifics on that,” SEGA Europe COO Jurgen Post told website

“Basically for us it’s putting a lot of focus into those studios and into their IPs. So Total War coming out of Creative Assembly, Football Manager coming out of Sports Interactive, so we want to diversify, so we want to have an increased focus on those brands. And we want to become better and more successful with those.”

Sega will also be focusing on digital games, according to Post; “It’s a focus on those four core IP, and in addition to that we’ll have digital. And digital still means 50 – 75 releases every year, so that’s still a big number.”

The new Australian distribution company for Sega products is being set up by Sega Australia’s old managing director, along with other people in the company who will move over. The new company is called “5 Star”.

Post also said the exit from the territories – which in addition to Australia include France, Germany, Spain and Benelux – will be smooth and wont happen until the end of the year. Layoffs will be part of it, but Sega will strive to keep healthy relationships with retail channels and the like.

What do you think about Sega’s restructuring? Is sacrificing a home base here in Australia a fair trade-off for a fantastic Sonic game in the not-too-distant future? Let us know your thoughts below.

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  • Luke Kyo Reichmuth

    My god, why arent they just fixing their dumb ass marketing department? Their games wouldnt sell bad if they would me marketed properly. BINARY DOMAIN, great game… had like 2 proper trailers. The Yakuza Games, like one single western trailer. Same fate with Vanquish and Bayonetta.