SEGA sells Relic (now an independent Studio) and announce more UK job cuts (Creative Assembly affected again)

[jonno394]

Sega sells Relic and will cut 240 jobs across UK studios

Sega has sold Relic Entertainment, and will cut 240 roles across Sega Europe, Creative Assembly and Sega HARDlightRelic…

www.gamesindustry.biz

Sega has sold Relic Entertainment, and will cut 240 roles across Sega Europe, Creative Assembly and Sega HARDlight

Relic is best known for the Company of Heroes and Dawn of War games, and recently developed the new Age of Empires for Microsoft. Relic will transition to an independent studio and will no-longer be part of the Sega group of studios.

The majority of the 240 job cuts are across Creative Assembly and Sega Europe, while there will be a 'small number' cut from Sega HARDLight. There was no mention of other Sega UK studios, including Two Point Studios and Sports Interactive.

So, on one hand good news for Relic who are now an indie studio and a future that they seem excited for.

On the other, Creative Assembly are facing more cuts after CA had Hyenas cancelled and staff cuts at the same time too. I feel like SEGA are throwing their European operations under the bus here as any and all cuts from them are coming in this area. Sad news for all involved.

(This is my first thread so apologies if this isn't on topic enough in the market area, i just hate seeing Creative Assembly bled out like this as the Total War series has long been a favourite of mine!)

 

[GodlyTrident]

So I guess all the IPs will stay with Sega and Relic will just become an independent studio. I guess it is similar to T2B.

On the other, Creative Assembly are facing more cuts after CA had Hyenas cancelled and staff cuts at the same time too. I feel like SEGA are throwing their European operations under the bus here as any and all cuts from them are coming in this area. Sad news for all involved.

Well, western devs are too expensive right now and governing structure of big corporation makes it even more expensive to operate studios. I guess we will see more "decoupling" sooner or later.

 

[Aostia82]

I?m glad that at least, among all the cuts we are seeing, at the same time some studios has been able to become indipendent
of course, being indipendent is risky, commerciallly/financially-wise, but at least they still can try

 

[Cocodor]

Good for Relic, but honestly hope for them they really think a lot about their next game.
Outside of AoE4, they haven't had a decent success or well reviewed game in the past decade.

 

[GodlyTrident]

Good for Relic, but honestly hope for them they really think a lot about their next game.
Outside of AoE4, they haven't had a decent success or well reviewed game in the past decade.

I am not sure if it is good for Relic or not though as I am not sure if they have enough resources to develop new IP.

 

[Terrell]

It's not a shock that Sega's cuts are hitting their European operations, the udders on Sega's reliable studios have started drying up. I also remember something about some financial fiddle-faddle that was going on to pad their numbers and look like they were financially better off than they actually were and they finally got caught doing it? Maybe I'm misremembering though.

 

[jonno394]

Creative Assembly had around 800 staff in april 2023. The Hyena cancellation and staff cuts were late 2023 and now this batch of cuts too, so there's a good chance that over a quarter of their staff have been let go in the last 12 months.

The fan reaction to Total War: Warhammer III and the seemingly fumbled handling of the DLC and WoM around it has been quite negative, which for a series that really rejuvenated them is on paper, a really bad look. The cancellation of plans for Three Kingdoms and the reaction by fans in China also paints a bad look for their short term future.

 

[Aostia82]

Hope gor them Football manager team won't be affected

 

[fiendcode]

Cuts at Hardlight are surprising because they've pretty much been the only mobile team at Sega (east or west) consistently delivering. And they've been doing mostly Apple Arcade stuff (guaranteed payments) the past few years at that.

I wonder if it's in any way due to the addition of Rovio?

 

[unkindlynice]

Makes sense for Sega but I can't help feel Relic would be better off under another publisher's wing.

Creative Assembly is just getting pulverised. I feel they might have made an error becoming a Warhammer studio as surely that means significant share of revenues going to the IP holder.

 

[Godzilla]

Good for Relic, but honestly hope for them they really think a lot about their next game.
Outside of AoE4, they haven't had a decent success or well reviewed game in the past decade.

Maybe remake Dawn of War 1, it's 20 years old. It could be a decent hit.

 

[jonno394]

Makes sense for Sega but I can't help feel Relic would be better off under another publisher's wing.

Creative Assembly is just getting pulverised. I feel they might have made an error becoming a Warhammer studio as surely that means significant share of revenues going to the IP holder.

They definitely need to diversify. Their historical stuff really hasn't been performing well recently, and with Three Kingdoms, they really screwed up what should have been one of their biggest success by ending support early (2021) and taking a catastrophic hit to the good will they fostered with the fan base in china. Adding to all that their Saga titles barely register when they launch.

CA undoubtedly have irons in the fire (another three kingdoms title was in the works in 2021) but whether these cuts affect things and cause cancellations, we'll have to see.

Sega and them focusing on chasing the GAAS trend and the subsequent cancellation has really dented their mystique imo. They and Sports Interactive should be jewels in Segas PC crown, but any time Sega mention CA now it seems to be bad.

 

[GodlyTrident]

Cuts at Hardlight are surprising because they've pretty much been the only mobile team at Sega (east or west) consistently delivering. And they've been doing mostly Apple Arcade stuff (guaranteed payments) the past few years at that.

I wonder if it's in any way due to the addition of Rovio?

We also keep in mind those recent (or not recent?) about Apple investing less in Arcade.

 

[Celestial]

I think Relic has been gutted and lost so much different staff over the years and also fired a bunch of people after COH3 that it's pretty bad for the studio right now.

Good for Relic, but honestly hope for them they really think a lot about their next game.
Outside of AoE4, they haven't had a decent success or well reviewed game in the past decade.

Sorry but have you seen the current climate for investments in games these days? This is not good for Relic.

 

[jonno394]

Just an update to this, Relic have just announced job cuts, a week after the sale, sad but expected :/

Relic Entertainment lays off employees to give itself 'the best possible chance to survive in an increasingly volatile industry'

Word of the layoffs comes just one week after Sega cut Relic loose.

www.pcgamer.com

"Earlier today we shared details with Relicans about a layoff," the studio wrote on LinkedIn. "Letting people go was not an easy decision, and was made solely with the goal of providing Relic the best possible chance to survive in an increasingly volatile industry. It does not in any way reflect the expertise, passion, or character of any of the impacted employees."