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Sega announced today that the board of directors agreed to implement specific structural reforms at their European studios to improve profitability after seeing big losses due to COVID-19 and inflation in the European region.
The structural reform will have a major impact on the output of Sega's European studios, namely Creative Assembly and their upcoming multiplayer shooter Hyenas, which has officially been cancelled.
Sega also cancelled several other unannounced projects that were actively in development at their European studios. Sega stated in the press release that they have reviewed the title portfolio of each development base in Europe and came to the conclusion that cancellation was the best option.
Additionally, the publisher plan to implement a reduction of various fixed expenses at Creative Assembly, which surely can't be good news for the fans of the studio that brought us the horror classic Alien Isolation.
It's not clear what exactly these reductions mean as Sega were not very specific. More details should emerge in the coming weeks. As a result of the abovementioned overhaul, Sega expect to record major losses of approximately 14.3 billion yen for the fiscal year ending March 31, 2024.
We sincerely hope that Creative Assembly will not be severely impacted by this decision and that the developers there won't be laid off as part of this new structural reform.
We, like many other gamers, would hope that such a talented studio will continue to be supported by the publisher and deliver great games over many, many years.
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