Sega Set for Major Restructuring

segaTighter Integration May be Necessary for Survival

Though much of the gaming industry seems to be recession proof, there are still pockets of companies who have been hit hard, and according to Edge, Sega may surprisingly be one of those companies.

Their report confirms that the company is looking to restructure management and its practices.  The hope is that the shakeup will more tightly knit the bright Sega minds between America, Europe, and Japan.

Confirming the information was Sega’s Takayuki Gawagoe, who noted that many of Sega’s big recent offerings haven’t performed as well as hoped, and that American critics seem to be more harsh on the company than their European counterparts.

Gawagoe believes the gaming industry and Sega especially is experiencing a downturn.  It may be; between recent reports from NPD that say the industry lost 17% of March revenue year to year, and a drop from February to March in all three console sales–with the Wii bearing the brunt of the losses–there’s new evidence that consumers may be holding back.  Further, Sega’s attempts to break into a more mature Wii audience in particular have not yet been successful.

What does this mean for you?  The reorganization should not be on as grand a scale as in 2001, when Sega dropped Dreamcast support and focused its attention to multiplatform software development.  But the company will be developing new IPs, as well as taking a hard look at old ones–including Sonic–and they will determine the best way to execute both in the context of maximizing its profit potential.

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