Sega Sells Relic Entertainment, Cuts Jobs in Europe

Sega Corporation has announced significant changes within its organizational structure, impacting the game development landscape in Europe. As part of a strategic shift, the company plans to sell Relic Entertainment and cut a total of 240 jobs across its European operations.

Details of the Decision

This move comes as Sega looks to streamline its business and focus on more profitable ventures. The company has signaled a commitment to enhancing its core gaming franchises, which has prompted the decision to divest from the Canadian-based studio.

About Relic Entertainment

Relic Entertainment, based in Vancouver, Canada, is widely recognized for its expertise in developing real-time strategy games. Some of its most notable titles include:

  • Company of Heroes Series - A critically acclaimed franchise known for its tactical gameplay and WWII setting.
  • Dawn of War Series - A series set in the Warhammer 40,000 universe, combining strategy with engaging narratives.
  • Homeworld Remastered Collection - A high-definition update to the classic space-based strategy game.

Relic's innovative approach to game design has earned it a dedicated fan base and numerous awards over the years.

Impact on Employees

The decision to cut 240 jobs in Europe is particularly concerning for the employees affected. The layoffs are expected to occur across various teams, impacting development, marketing, and support staff. Sega has indicated that the affected employees will receive support during this transition, including:

  1. Severance Packages - Financial support for those who are laid off.
  2. Job Placement Services - Assistance in finding new employment opportunities.
  3. Career Counseling - Guidance for employees seeking to transition to new roles.

Future of Relic Entertainment

As Relic prepares for its sale, questions remain about the studio's future and its potential buyers. Industry analysts speculate that the studio may be an attractive acquisition for companies looking to bolster their portfolios with established franchises.

Overall, this decision marks a significant shift for Sega as it seeks to realign its priorities in a rapidly evolving gaming market. The true implications of these changes will unfold in the coming months as the sale progresses and the future of both Sega and Relic Entertainment becomes clearer.

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