SEGA selling off their arcade business isn't the only bad news for the company. A press release has just announced that due to losses suffered this recent financial quarter SEGA will be asking 650 of its employees to "voluntarily retire". The document states that SEGA is establishing a structural reform to adapt to a post-Covid-19 market, and to offset further losses expected to be reported in their yearly fiscal report, set to be reported in March 2021. While an exact number hasn't been released, SEGA expects to have lost 10 billion yen in losses since the onset of Covid-19 throughout the entire fiscal year. Any workers facing voluntary retirement will be given "extraordinary retirement allowances" and SEGA will help any former employees find new work through reemployment support.

This isn't the only cost-saving measure being taken by the company either, as their executive staff will be facing salary cuts. Any employee above the position of Representative Director or Senior Vice President will see their income cut 10-30%.

Source

 

[luigirockz]

Not sure if it be more difficult for MS to buy Sega since they are American. I also think it be cool if Nintendo bought Atlus .

 

[cearp]

Very sad to hear, hope this doesn't affect the games they make but I don't see how it couldn't!

I could see Nintendo buying Sega then only using it to make a new Mario & Sonic Olympic Games.

My nightmare!

 

[raxadian]

This is sad.... and on the year of Sega 60th anyversary too.

 

[GBADWB]

Not sure if it be more difficult for MS to buy Sega since they are American. I also think it be cool if Nintendo bought Atlus .

Fun fact, although Sega's main head quarters are in japan, Sega was founded by an American and moved into japan as they shifted focus onto consoles rather than arcade machines.

 

[ShadowOne333]

Archives say hello.

I know about Archives, but that's not the point.

The main difference between Sega and Nintendo, is that Sega actually encourages hackers and fangame creators to do work based on their property. Sonic Mania is a clear indicator of the romhacking scene pushing forward and releasing an actually licensed and really well done game, done by none other than the people that love the games so much they wanted to modify it or make their own stuff.

The thing here is that if Nintendo gets a hold of Sonic/Sega, then all of the wonderful work that's been put into the hacking and fangame community for Sonic through the past 2 decades would go to shit.

Just look at the yearly Sonic Hacking Contest, or the SAGE event as well, and a lot of communities centered solely around Sonic stuff in that regard. All of those events that have been going on a yearly basis would be absolutely destroyed by Nintendo as soon as it had Sonic as IP.

 

[luigirockz]

Fun fact, although Sega's main head quarters are in japan, Sega was founded by an American and moved into japan as they shifted focus onto consoles rather than arcade machines.

Well then I guess there is hope after all for the MS rumors. Didn't know Sega began stateside

 

[1NOOB]

micro$oft will buy it . its just too perfect with their "everywhere everyone" sonic and sega is marketable easyli under good management .ask a random person who sonic is and youll probably get someone who knows it

 

[Deleted User]

Aww... even when they're assholes, they're not assholes. Seriously though, huge props to Sega, any other company would just fire 650 random employees and never speak to them again.

 

[Quarions]

No one will buy Sega, what the fuck y'all on.

--------------------- MERGED ---------------------------

Why y'all want that Nintendo buys Sega? do y'all want their masterpieces to be available only in a shitty console?

Everyone who says that have less than 60 IQ i swear.

 

[1NOOB]

No one will buy Sega, what the fuck y'all on.

--------------------- MERGED ---------------------------

Why y'all want that Nintendo buys Sega? do y'all want their masterpieces to be available only in a shitty console?

Everyone who says that have less than 60 IQ i swear.

just found out they have so muuch stuffs making money that arnt video game related

https://web.archive.org/web/2020051...elease/202003_4q_hosoku_20200513_final_e_.pdf

 

[Deleted member 194275]

People saying that Microsoft will buy Sega need to consider how hostile the Japanese governament is against companies who try to aquire control over companies there.

It is possible, yes, but it is a huge effort that often made the merge / aquisition not profitable.

Sony, Bandai, Nintendo, etc. are in a better position regarding that.

 

[FAST6191]

No one will buy Sega, what the fuck y'all on.

Looking at https://www.segasammy.co.jp/english/ir/ (specifically "FLASH REPORT CONSOLIDATED FINANCIAL STATEMENTS [Japanese GAAP] 6 Months Ended September 30, 2020")
https://asia.nikkei.com/Companies/Sega-Sammy-Holdings-Inc for a more historical approach, though I am now curious what they had in 2017.

We have seen plenty of companies with a nice back catalogue get bought out by investors or other big players when they start to have to shed divisions, staff and have no real money spinners on the horizon (in games safe money might as well be no money, mega smash or don't bother).
4.2 billion USD if I have the maths right looks like their total assets at this point (don't know if they downplay their trademarks in Japan), liabilities rather less than that (maybe a quarter) and operating at a loss too (about even with their cash on hand).

It would be a bid on par with the Bethesda parent takeover but I could see it happening if investors get spooked and go for a lower valuation.

Personally I would see if Sega go pop in the years to come or have investors pull funds and pick the corpse clean but others might prefer a more direct approach.

 

[Plasmaster09]

I dont mind seeing sonic exclusive on xbox.

I sure as hell do.
If Sega sells out to anyone, it should be their former longtime rival for maximum irony.

 

[Julie_Pilgrim]

Damn, it keeps getting worse and worse for sega

 

[Deleted member 668561]

Plot twist:

SEGA Purchased by Sony Corp.

 

[MohammedQ8]

Leaked conversations between sega and sonic team hehe

 

[BraveDragonWolf]

This Covid situation is gonna get even worse anyway...

 

[medoli900]

I sure do hope that if they get monetary help through stockholding, it won't be from a company that will force console/storefront exclusivity (i.e. another software sided company like Capcom, Level 5 or Bandai). I still want Project Diva and Project Mirai to be a thing.

 

[Viri]

Keep in mind, the company that buys Sega, will also get Atlus. If Microsoft buys Sega, Persona/SMT becomes an Xbox/PC exclusive.

 

[vincentx77]

Keep in mind, the company that buys Sega, will also get Atlus. If Microsoft buys Sega, Persona/SMT becomes an Xbox/PC exclusive.

I am so down for this. Never needing a console for a Persona game again. The potential to make Atlus get off their ass and translate their games in a reasonable amount of time. Yes, please!