Sega sacrificing Euro/Oz operations to focus on four core IPs

Sega will sacrifice operations in Europe and Australia to laser-focus on four key brands: Aliens, Sonic, Total War, Football Manager.

"At the moment, for us, those four IPs we are talking about, they are our AAA IP," Sega Europe's chief operating officer Jurgen Post told GamesIndustry International.

"At the moment, we are looking into options of course, but it's not like we are already developing some other titles in addition to that, no."

"It's a focus on those four core IP, and in addition that we'll have digital. And digital still means 50 - 75 releases every year, so that's still a big number."

It's not clear how this will affect Sega's relationship with Vanquish and Bayonetta developer PlatinumGames.

"The big IPs are becoming bigger. Whether that's FIFA, Call Of Duty or Assassin's Creed, those titles are just becoming bigger and bigger and it's harder and harder to break into the market with new IP."

Jurgen Post, Euro COO, Sega

Offices will be closed "towards the end of the year" in France, Germany, Spain, Australia and Benelux.

European distribution will be handed to Koch Media and new company Level 3. 5 Star Games will handle Australia.

"The big IPs are becoming bigger," Post postulated.

"Whether that's FIFA, Call Of Duty or Assassin's Creed, those titles are just becoming bigger and bigger and it's harder and harder to break into the market with new IP. And there's a big transition at the moment."

"It's still a fantastic business," he stressed, "because if you combine everything it's massive and it's growing. But we had to make the changes we are making right now, in order to be better prepared for the future."

Sega's expected to announce a new Total War game next week.