Structural reforms has reportedly impacted SEGA’s gaming businesses late Thursday, with Relic Entertainment sold and 240 roles cut across its European operations.
Most of these cuts will be coming from Creative Assembly and SEGA Europe, with only small cuts from Sonic Dream Team developers SEGA HARDlight. The report did not mention other SEGA Europe studios like Two Point Studios and Sports Interactive.
SEGA previously announced that multiple unrevealed titles were cancelled across its European studios, with an aim to reduce costs after profits remained low across its European wing through the pandemic.
Total War-developer Creative Assembly in particular has been hit the hardest by the reforms. Job cuts will continue at the studio, despite earlier cuts last year in the wake of Hyenas’ cancellation.
We need to streamline, focus on what we are good at, and position ourselves as best we can for the road ahead. In order to do that, we need to respond to the changing economic landscape and the challenges we’re facing in the way we develop our products and bring them to market
Jurgen Post, SEGA Europe head
Vancouver-based Relic Entertainment is set to transition to independent development with help from an unnamed external investor. The studio is behind the Company of Heroes game series.
SEGA joined a long list of game studios and companies who have let go of staff, or have chosen to downsize operations.
