Archive link: https://archive.ph/r5n4b
SEGA SAMMY HOLDINGS INC. (the Company) hereby notifies that it has resolved to implement structural reforms in the Consumer area, mainly at its European bases at the Board of Directors meeting held on September 28, 2023 and in accordance with this decision, the Company expects to record a loss for the fiscal year ending March 31, 2024.
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.
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.
we expect to record losses of approximately 14.3 billion yen for the fiscal year ending March 31, 2024, but there are no changes to the full-year consolidated operating results forecast for the fiscal year ending March 31, 2024 at this time.
the Amusement Machine Sales area, where the prize category is performing well, and the Animation and Toy area are performing solidly. In addition, the Pachislot and Pachinko Machines Business continues to perform well, centered on the pachislot machines, and in the Resort Business, occupancy at various facilities is also continuing to be solid.
The interesting thing about this to me is it sounds like HYENAS was already very far along (being in an open beta quite recently).
I wonder if SEGA is giving it the Batgirl treatment, where they cancel it just for a tax write-off; or if it had serious structural issues that would have actually been very costly to rectify.