In an effort to improve its profitability, Sega has announced a restructure of its organization that may well see up to three-hundred jobs cut. This comes after a poor financial year for one of gaming's biggest household names, which has become less and less relevant over the past two decades.
Given this major change in fortunes it is perhaps no surprise that Sega bosses have announced a major restructure of the company, starting with a downsizing of the publishing side of the business. Additionally the company are looking to relocate their North American headquarters in San Francisco to a more Southerly part of California. At the same time, in a move that may sadden many gamers, the company's intention is to step away of from console games and instead focus on PC and mobile gaming markets. The first project of this new direction was revealed last year as the free-to-play Sonic Runners for iOS and Android devices (which is being developed by the gaming veterans at Sonic Team). This departure from the console market serves as an unsavory reminder of the last time Sega decided to turn their backs, which was on the Dreamcast back in 2001 after the console failed to perform well against the relentless marketing success of the PlayStation 2. Meanwhile, the company's chief rival in the original console war, Nintendo, were holding on largely due to their strong and varied mix of characters and their more conservative console development. The Dreamcast, in deep contrast to the N64 and Gamecube was a massive technological leap forward, even when compared to the later PS2. You can read more on the Dreamcast's brief success right here.
Since then, the once great mover and shaker in the gaming industry has continued to dwindle, with many titles showing a lackluster performance year after year, including the company's own chief mascot, Sonic. Initially, Sega and Nintendo joined forces, Sonic appearing alongside Mario and co. But while Nintendo was able to stay fresh and relevant, if only to fill a more family friendly market, Sega would never again attempt to create a console as the grip from Sony and Microsoft with the Microsoft ensured console dominance.
Sega ultimately wished to become bigger and better. It originally tried to take on Nintendo on an equal footing, but later found an even worse foe in Sony. Sega suddenly found itself slipping behind despite trying to hold on desperately to their place in the gaming world. It was as if it was attempting to hold on to the back of Sony's fast rabbit, while what it should have been doing was following next to Nintendo's much slower turtle.
Time will only tell if Sega will be able to make a comeback in this modern gaming market, but no matter what it tries to achieve it would seem that it will never reclaim the greatness that it once had in the nineties alongside Nintendo.
SEGGGGGGGGAAAAAAA!
Do you think Sega is on the right track as they move towards the PC and mobile world? Or do you believe they should stick to their console roots? Let us know in the comments below!