Sega's long term game plan for a leaner, meaner portfolio will entail renewed focus on its digital business, but the publisher will also continue to downsize global operations as a result. Unfortunately, Sega today confirms that its latest round of casualties will occur this weekend.
Starting July 1st, Sega will be closing its territorial offices in France, Germany, Spain, the Netherlands and Australia. Sega will instead form partnerships with Koch Media, Level03 Distribution and 5 Star Games to handle distribution of its boxed retail titles in these markets. Only Sega Europe's base of operations in London will remain. Incidentally this development marks London 2012: The Official Video Game of the Olympic Games as the last title Sega will directly distribute in the aforementioned regions.
Sega Europe's COO Jurgen Post explains that while the decision was not an easy one to make, it was unfortunately both "logical" and inevitable given the nature of an industry which now favors stronger and more reliably-performing IP. For Sega, those key IP are its Sonic the Hedgehog, Total War, Football Manager and Aliens franchises which generate 65 percent of its business.