Sega has announced a pretty massive restructuring, following their posting of an equally massive loss later last year, and a sizeable amount of redundancies (see: layoffs) in their various worldwide branches.
Sega detailed the purpose of their restructuring, which is to “develop a structure to enable investment of management resources in growth areas”, which the company lists as industries such as “Digital Games both in and out of Japan and Resort Business”, while they also tackle existing business issues.
To break it down into simpler terms, the restructuring will be separated into three key parts:
1) Establish SEGA Interactive Co., Ltd. through an incorporation-type demerger by divesting the amusement machine sales divisions of SEGA (including development/production divisions and assets of shares of some subsidiaries) and allocate shares of SEGA Interactive Co., Ltd. to the Company.
2) Establish SEGA Holdings Co., Ltd. through an incorporation-type demerger of SEGA’s corporate divisions and others (including assets of shares of some subsidiaries)
and allocate shares of SEGA Holdings Co., Ltd. to the Company.3) Conduct an absorption-type merger of SEGA and SEGA Networks Co., Ltd., with SEGA, centering around the Consumer Business division (including development/production divisions and assets of shares of some subsidiaries), as the surviving company, and change the name to SEGA Games Co., Ltd..
Here’s the crazy part: their corporate restructuring is reportedly going to cost the publisher at least 15 billion yen. That’s roughly $126 million dollars, in case you’re wondering.
This is their proposed corporate structure, following their reorganization:
As is expected, this is partly due to the fact that Sega’s recently published games like Alien: Isolation, Sonic Boom (on both 3DS and Wii U), and so on have failed to sell to their expectations. Both Alien: Isolation and Sonic Boom specifically are mentioned as performing below the management’s expectations.
Before carrion vultures start circling the rotten husk that is Sega, it’s worth reminding you that Sega does own Index Corp., and by proxy, Atlus. However, no mention of either of those entities was mentioned as being affected by their restructuring.
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