In a disappointing turn of events, Sega has announced the cancellation of their highly anticipated game, Hyenas, along with several other unannounced titles. This decision comes as part of a broader move to streamline the company’s European operations and address the financial losses that Sega attributes in part to the ongoing COVID-19 pandemic. The cancellation of Hyenas, a sci-fi extraction shooter that promised an innovative and thrilling gaming experience, has dealt a significant blow to both Sega and fans alike.
The cancellation was confirmed in a letter addressed to the investors from Sega’s CEO and president, Haruki Satomi. The letter revealed that Sega expects to record a loss in the Consumer area for the fiscal year ending March 31, 2024. This loss is said to be influenced by the combination of reduced demand caused by COVID-19 restrictions and the economic hardships brought about by inflation in the European region. Satomi further explained that profitability has particularly suffered in European bases, necessitating structural reforms and portfolio reviews focusing on efficiency.
Unfortunately, Hyenas is not the only casualty of Sega’s restructuring efforts. It remains unclear whether the other canceled titles are also from Creative Assembly, the studio behind Hyenas. Sega’s European studios, including renowned developers such as Sports Interactive (creators of Football Manager), Hardlight (specializing in mobile games), Amplitude (known for Endless Space), Two Point Studios (developers of Two Point Hospital), and Rovio (the company behind Angry Birds), have all been affected. With the termination of these projects, there is a pressing concern regarding potential job losses within these studios.
Sega’s statement acknowledges the need to adapt quickly to the shifting business environment and improve profitability. This will involve implementing structural reforms aimed at increasing efficiency, primarily in their European bases. The company plans to reduce various fixed expenses and expects to incur one-time expenses related to this reduction. While the specifics of these expenses and potential job losses are not yet known, Sega has expressed its commitment to pursuing measures to enhance profitability in their European operations.
The cancellation of Hyenas and other unannounced titles is a significant blow to Sega’s reputation and financial standing. The Creative Assembly, known for their critically acclaimed Total War series, has garnered widespread recognition, but the cancellation of Hyenas marks a setback for the studio’s efforts to branch out and innovate beyond their iconic franchise. The timing of this cancellation is particularly unfortunate, as the gaming community eagerly awaited the release of Hyenas after the success of Creative Assembly’s last major game, Alien Isolation, in 2014.
The unexpected cancellation of Sega’s Hyenas and other unannounced titles is undoubtedly disappointing for both the company and fans. As Sega navigates these challenging times, it is essential that they find a balance between cutting costs and maintaining their reputation for delivering high-quality gaming experiences. This setback serves as a reminder of the volatile nature of the gaming industry and the need for adaptability in the face of unforeseen circumstances. Meanwhile, the affected developers and studios can only hope for brighter days ahead and new opportunities to showcase their creativity and talent.
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