Sega has announced that the upcoming shooter Hyenas will be canceled amid “structural reform” involving their European assets.
In their announcement, Sega told investors that they were expecting a loss for the fiscal year ending in March 2024 and are taking drastic steps to address it.
You can read part of the announcement below.
- Background of implementation of structural reforms
The Company group has set the Consumer area as one of its growth areas and has achieved rapid earnings growth in recent years by promoting the global branding of its existing IPs and other measures. On the other hand, the business environment surrounding the Consumer area has been rapidly changing, including reactionary decline from the stay-at-home demand in COVID-19 and the economic downturn due to inflation in European region, and profitability has been lowered mainly in European bases.
To promptly adapt to these changes in the environment and improve profitability, we have decided to implement structural reforms aimed at increasing efficiency, mainly at our European bases and reviewed the title portfolio in those bases. Then we have made the difficult decision to cancel some titles under the development as well as to reduce the fixed expenses.
- Details of implementation
The Company will implement the following items regarding structural reform in our European bases which are determined at this time.
1) Cancelation of titles under development
In response to the lower profitability of the European region, we have reviewed the title portfolio of each development base in Europe and the resulting action will be to cancel “HYENAS” and some unannounced titles under development. Accordingly, we will implement a write-down of work-in-progress for titles under development.
We recently previewed Hyenas in anticipation of its launch later this year, though it seems like it will never actually happen.
Hyenas was expected to release later in 2023 on PlayStation 5, PlayStation 4, Xbox One, Xbox Series X/S, and Microsoft Windows (through Steam).