Sega Confirms 300 Staff Layoffs on the Anniversary of Sonic the Hedgehog 2006

sonic the hedgehog 2006 01-30-15-1

It seems like the ghost of Sonic the Hedgehog (the 2006 game) is still lingering around Sega, as the company has announced they’re laying off 300 employees, as a part of their ongoing corporate restructuring.

Today is the 8th anniversary of the hilariously bad reboot, and the company is axing the jobs of 300 employees, 120 of which are part of Sega of America. The company will also be relocating their American headquarters from San Francisco to Southern California.

The reasoning behind the restructuring is to shift their focus to smartphone and online PC games. Last November, the company posted a huge loss, and the notion that they should shift focus to online sales had already been stated.

This new restructuring is going to begin some time early this summer, where a currently unknown total number of employees being laid off will be confirmed. “We are confident that by relocating to Southern California we will be able to thrive, grow and become a stronger company because of it,” said Sega of America president, John Cheng. He continued:

This move was crucial to keep SEGA operations moving forward throughout North America and to provide our millions of fans a strong pipeline of content across gaming, TV, merchandising, and more. We are sad to say goodbye to some of the best people in the business and are indebted to them for their hard work and dedication through the years.

The company’s upcoming game release schedules will not be affected, the press release assured.

The European branch of Sega will experience “limited” redundancies, in comparison.

Brandon Orselli


Owner and Publisher at Niche Gamer and Nicchiban. Outlaw fighting for a better game industry. Pronouns: Patriarch, Guido, Olive.

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  1. IkaNam
    January 30, 2015 at 10:34 am

    It was a ritual sacrifice to keep the evil that is Sonic 06′ sealed.
    Not ever must it be unleashed on the world.

  2. Cy
    January 30, 2015 at 10:52 am

    There’s that Sega blindness we’ve all come to know and love.

  3. Omnistrand
    January 30, 2015 at 11:05 am

    You know Sega if you actually localized your games maybe you could actually pull in a profit. It’s actually kind of sad to see them go this way considering gamers would see their logo plastered on a large number of quality games back in the day.

  4. Neojames82
    January 30, 2015 at 11:10 am

    This seems like the beginning of the end.

  5. Dragonzeanse
    January 30, 2015 at 11:13 am

    I worry Sega will be going the way of THQ if their behavior continues. They’ve really abused their consumer goodwill over the last few years with the false DMCAs on YouTube and Sonic Boom. They’re on their last legs and I don’t really know what they could do to save themselves other than continue their partnership with Nintendo.

    And by the way, Sega, make another goddamn Valkyria Chronicles game, and don’t put it on a handheld platform.

  6. amc99
    January 30, 2015 at 11:18 am

    Yeah, Sega have MANY games that they developed themselves that actually will sell well if it get localized. But they are just too ignorant about it

  7. Misogynerd
    January 30, 2015 at 11:19 am

    This is why Nintendo shouldn’t go third party. I do hope SEGA invests more in the Steam Store though, could help them go through tough times.

  8. Robert Dxd
    Robert Dxd
    January 30, 2015 at 11:22 am

    Actually, Theyve been outsourcing pretty much every game they own the rights to lately, I dont even know what game was the last they actually made at this point

  9. Michael Richardson
    Michael Richardson
    January 30, 2015 at 11:24 am

    Sega has long been a shell of its former self. All I care about at this point is that Atlus continues to have a strong console presence.

  10. Jack Ripper
    Jack Ripper
    January 30, 2015 at 11:28 am

    Is there any fanbase of their games that Sega hasn’t pissed off yet? Not surprising that they’re getting worse and worse.

  11. Omnistrand
    January 30, 2015 at 11:40 am

    It really is a damn shame, so many Sega IPs have a pretty big following that’s been neglected over the years, Phantasy Star fans got shafted pretty hard with the whole Phantasy Star Online 2 debacle and again with the refusal to localize Phantasy Star Nova. Valkyria Chronicle fans missed out on the third installment because Sega said there was no interest for it in the west (not true considering the phenomenal success VC had on Steam). So many times Sega has either ignored or have acted outright antagonistic against their customers.

    Dammit Sega you had potential once, what happened to you?

  12. Siveon
    January 30, 2015 at 11:44 am

    Sega is in charge of the Yakuza franchise right?

    Fuck ’em.

  13. landlock
    January 30, 2015 at 12:02 pm

    It’s only a matter of time until there brought up or picked apart by vultures.

  14. Patrick Bateman
    Patrick Bateman
    January 30, 2015 at 12:05 pm

    “The reasoning behind the restructuring is to shift their focus to smartphone and online PC games.”
    Maybe it’s a far stretch because they will be focusing on F2P games instead, but…..
    Would this increase the possibility of a PC port for Vanquish?

  15. Siveon
    January 30, 2015 at 12:26 pm

    “The reasoning behind the restructuring is to shift their focus to smartphone and online PC games.”

    Hoo yeah, smartphones. That’ll totally rake in the profits Sega. Hopefully “online PC games” is just stupid-PR-gibberish for “Steam”.

    Anyway, yeah, we all know Sega sucks and this just shows how much they suck.

  16. FatGoose
    January 30, 2015 at 12:32 pm

    Sega’s coming to So Cal? alright! Time to take some pictures with Sonic :)

  17. Silhouette
    January 30, 2015 at 2:11 pm

    I still run with the completely unfounded belief that SEGA has anti-West elements in influential positions running its nose in the dirt, on that front.

    Then again, SEGA also killed the Archie Comics line. It may have been a clusterfuck of strange happenings, and a writer’s nightmare, given what happened with Penders, but it also obliterated one of the strongest community followings and, my personal opinion, one of the strongest canons for the Sonic universe in one swoop.

    I have no idea what SEGA is doing, but I sure as hell gave up on them long ago. Valkyria Chronicles even making it to Steam was a god-damned miracle, to me.

  18. sanic
    January 30, 2015 at 2:15 pm

    I too am displeased with sega, although I’m grateful to sony for helping bring over yakuza 5.

  19. Bananalint
    January 30, 2015 at 2:53 pm

    This is what I’m worried about. We may not see anymore Yakuza games after 5.

  20. Evyn Yeager
    Evyn Yeager
    January 30, 2015 at 3:03 pm

    I sincerely hope and think this will give sega a spurt of innovation. Who knows, maybe they make good mobile games? I’m glad they aren’t throwing in the towel.

  21. Tyrannikos
    January 30, 2015 at 4:02 pm

    Later, Sega. You refuse to localize the titles we actually want, so I find it hard to sympathize with you. Hopefully you get your act together after the move.

  22. 33
    January 30, 2015 at 5:04 pm

    Don’t forget the Shining franchise. SEGA did.

  23. wundermula
    January 30, 2015 at 9:14 pm

    Wait they’re really abandoning consoles for pc gaming?
    I don’t think console gaming is doing that poorly…

  24. Javier Vega
    Javier Vega
    January 30, 2015 at 10:24 pm

    Sega makes a lot of money on Arcade and Pachinko machines in Japanese branch of Sega Sammy.Since they decided to make be a third party developer they been milking franchise in other news the plan to release Total War: Arena a team based strategy game on PC they’re asking for beta testers.

  25. Thanatos2k
    January 31, 2015 at 12:53 am

    So that means you’re going to release Valkyria Chronicles 3 on PC? No? Sod off Sega, and take your mobile garbage with you.

  26. Thanatos2k
    January 31, 2015 at 12:53 am

    And maybe, I dunno, localize it this time!?

  27. Thanatos2k
    January 31, 2015 at 12:54 am

    Oh, they’re still releasing games in it, aren’t they? Haven’t localized one in years though. Why? Who knows!

  28. Thanatos2k
    January 31, 2015 at 12:55 am

    This has nothing to do with going third party, and everything to do with godawful business decisions and inept management.

  29. Kitsunetsuki
    January 31, 2015 at 4:47 am

    Aw, job losses in San Fran? I am… gutted. LOL.

  30. NeoSkyte
    February 1, 2015 at 9:42 am

    I completely agree and other than localizing advertise your game. Like seriously I know so many people who didn’t know about games like Yakuza, Valkyria Chronicles, etc existed until I let them play my copy. They had the opinion that Sega only makes Sonic games.

  31. Omnistrand
    February 1, 2015 at 9:56 am

    Exactly, I never buy the whole “there’s no interest for our product” excuse from any company because there’s always an audience for your game in every region, if Hatred could drum up interest than essentially anything can. You just have to find a way tap into that audience without blowing millions of dollars in advertising.

    The public perception of Sega games doesn’t really surprise me, the only things they really localize are Sonic or Hatsune Miku games, hedgehogs and divas for everyone. I mean the last game that wasn’t any of the above and had Sega’s stamp on it was Resonance of Fate (a damn fine RPG by the way). That was years ago and it wasn’t even developed by Sega proper, it was Tri-Ace that did the legwork. But I will give credit where credit is due and congratulate Sega on getting Valkyria Chronicle to steam and deciding to bring Yakuza 5 to the west.

  32. EvaUnitO2
    February 1, 2015 at 11:20 am

    Like what?

  33. Tyrannikos
    February 1, 2015 at 3:59 pm

    Well, Phantasy Star is a good place to start. :|

  34. Jeremy Vaughnek
    Jeremy Vaughnek
    February 6, 2015 at 8:26 pm

    SOJ has ALWAYS hated SOA. Even check back in the genesis days… They hatetheir American counter-part

  35. Jeremy Vaughnek
    Jeremy Vaughnek
    February 6, 2015 at 8:26 pm

    Shenmue!!!!! re-release Shenmue 1 and 2 for god’s sake please!

  36. Jeremy Vaughnek
    Jeremy Vaughnek
    February 6, 2015 at 8:27 pm