Sega’s recent announcement about the cancellation of their forthcoming looter FPS game, Hyenas, has sent shockwaves through the gaming industry. Along with Hyenas, several other unannounced titles have also been scrapped as part of Sega’s plan to cut down on costs in response to financial losses. The decision comes as a response to the impact of the COVID-19 pandemic, with Sega citing European social-distancing measures and a downturn in the economy as contributing factors to their financial struggles. This article delves into the repercussions of this cancellation and what it means for Sega and the gaming community as a whole.
In a letter addressed to investors, Sega’s CEO and president, Haruki Satomi, acknowledged the challenging business environment brought about by the pandemic. Satomi mentioned the decline in demand caused by stay-at-home measures and the economic downturn in Europe as major factors affecting profitability in the “Consumer area.” To adapt to these changes and improve profitability, Sega has chosen to implement structural reforms primarily in their European bases and reevaluate their title portfolio. The cancellation of Hyenas and the other unannounced titles is a direct result of this strategic decision.
While it remains unclear whether the canceled games include projects from Creative Assembly, the decision to cancel Hyenas has undoubtedly affected the studio. Creative Assembly, known for their popular Total War series, had been expanding their horizons with Hyenas, which was poised to be their first major non-Total War release since 2014’s Alien Isolation. With the cancellation of the game, there are concerns about potential job losses within the studio as Sega moves forward with their plans for efficiency and cost reduction.
The Fallout: Reduction of Fixed Expenses
Sega’s statement indicates that they will be implementing a reduction of fixed expenses across various group companies, with a focus on Creative Assembly Ltd. This move is expected to incur one-time expenses related to the cost-cutting measures. While it is uncertain whether job losses will be a part of these reductions, Sega’s mention of further measures to improve profitability suggests that there may be more cuts to come. The specifics and impact of these decisions will be announced once they are finalized.
As Sega navigates the challenges presented by the current business landscape, it is evident that they are prioritizing efficiency and financial stability. The cancellation of Hyenas and other titles may be a disappointing blow to both developers and fans, but it reflects Sega’s commitment to making strategic choices that align with their long-term goals. It remains to be seen what the future holds for Sega’s European studios and the projects they are currently working on. As the gaming community awaits further updates, it is crucial to support the developers affected by this decision and wish them the best in their future endeavors.
Sega’s cancellation of Hyenas and other titles sends ripples of concern throughout the gaming industry. The decision highlights the challenges faced by developers and publishers in an ever-changing business landscape. While it is important to acknowledge the impact of the pandemic, it is also necessary to explore new ways to adapt and thrive in these uncertain times. As the gaming community absorbs this news, we can only hope that Sega and other companies will find innovative solutions that support both creativity and financial stability.