Last week, news from SEGA of America broke that saw numerous members of staff fired, games canceled and a general downsizing of the entire branch of SEGA of America. Initially, rumors ran rampant and confused a large amount of fans across the globe, the worst of which was that the entire United States branch of SEGA had completely shut down, which of course is not the case.
Immediate reconstruction has taken place going into their new fiscal year. They expect a net loss of ¥7.1 billion ($86.4 million) as part of the reform and news of this dropped their entire company’s stock 4%. However, the day after their stock rose 5% and is showing signs of continual growth.
After the break I discuss the potential cancellations, their effects, observe the negatives and positives of the change and attempt to discover if SEGA truly is in trouble or if the downsizing is the start of a brilliant strategy. The rest of the post should be taken as speculation from a dedicated fan of the company and game industry as a whole and not as a financial advisor.
Out of respect of those whom lost their jobs, any subjects around them will not be mentioned at all.