Sega Sammy Holdings has announced a restructuring of its operations in Europe due to reduced demand and inflation on the continent caused by the COVID-19 pandemic. The Japanese company reports that this situation has adversely affected the profits of its European division, leading them to review all ongoing projects.
One of the measures taken is the cancellation of several projects, with the only one announced so far being Hyenas, the multiplayer shooter developed by Creative Assembly (known for games like Total War and Alien Isolation), which was in its final testing stages.
Additionally, a “reduction of fixed expenses” for the company in Europe has been announced, indicating possible layoffs and closures of offices on the continent. This reduction will likely involve pre-existing expenses, such as severance packages for affected employees.
One of the divisions that will be affected by this “expense reduction” is Creative Assembly. Sega’s studios in Europe include Amplitude (creators of Humankind), Relic Entertainment (developers of games like Company of Heroes and Age of Empires IV), Sports Interactive (known for the football management game Football Manager), and Two Point (responsible for Two Point Hospital).
Sega Sammy Holdings expects this restructuring to result in losses of 14.3 billion yen (approximately 120 million euros) in the fiscal year ending on March 31, 2024.
– Multiplayer shooter: A genre of video games in which players control a character that shoots firearms and can face each other online.
– Severance package: Final payment made to an employee at the end of their employment.
– Inflation: A sustained and widespread increase in the prices of goods and services over a period of time.
– Sega Sammy Holdings (original article)