Sega’s Announces Relic Entertainment Sale & Job Cuts

In a recent announcement, Sega has revealed its plans to divest Relic Entertainment, a renowned gaming studio based in Vancouver, Canada. This decision accompanies a significant workforce reduction of 240 jobs across Europe.

Relic Entertainment is widely recognized for its expertise in developing real-time strategy games, boasting acclaimed titles such as the Company of Heroes, Age of Empires, and Homeworld series.

Sega disclosed that Relic Entertainment is set to be sold to a newly established holding company by the UK investment firm Emona Capital LLP. However, detailed information regarding this transaction remains undisclosed, as requested by the transferee.

The bulk of the job cuts, totalling 240 positions, will primarily impact Creative Assembly and Sega Europe, both located in the UK. Additionally, a smaller number of job reductions will also occur at Sega Hardlight.

As part of a comprehensive review of its European studio’s mid-term lineup, Sega has opted to implement write-downs of work-in-progress for certain titles currently in development. Consequently, the company anticipates incurring a loss of 5.6 billion yen ($31 million) as a cost of sales.

According to GamesIndustry.biz, Jurgen Post, the newly appointed head of Sega Europe, expressed the company’s stance on these changes, stating, “Sega is working closely with Relic on this shift, and we wish them the best for the future.” He acknowledged the distress these decisions may cause and emphasised the meticulous consideration behind them.

Post continued, “Change is necessary to secure the future of our games business and to ensure that we are well placed to deliver the best possible experiences to our players going forward.” He stressed the need for streamlining operations, focusing on core strengths, and adapting to evolving market dynamics.

This announcement follows previous restructuring efforts by Sega Europe, including the layoff of 121 employees at Relic Entertainment in May 2023 and a further reduction of 250 jobs in September of the same year, prompted by project cancellations from European studios, such as Creative Assembly’s Hyenas.

As Sega navigates these changes, it aims to position itself strategically in the gaming industry landscape, fostering resilience and innovation for the road ahead.