Sega Announces Sale of Relic Entertainment and Restructuring Plans

In a significant move, Sega has announced the sale of Relic Entertainment and plans to reduce its workforce by 240 positions across Sega Europe, Creative Assembly, and Sega HARDlight. Relic Entertainment, renowned for its work on the Company of Heroes and Dawn of War series, as well as the recent Age of Empires title for Microsoft, will transition into an independent studio, ceasing to be part of the Sega studio group. The majority of job cuts will impact Creative Assembly and Sega Europe, with a smaller number affecting Sega HARDlight. Notably, other Sega UK studios, including Two Point Studios and Sports Interactive, were not mentioned in the announcement. This development follows Creative Assembly's previous redundancies after the cancellation of its Hyenas project last year. Jurgen Post, the newly appointed head of Sega Europe, expressed the company's close collaboration with Relic during this transition and wished them success in their future endeavors. Post apologized for the distress this news may cause, particularly for those directly affected, emphasizing that these decisions were made after thorough consideration and deliberation to secure the future of the games business. The goal, Post explained, is to streamline operations, focus on core strengths, and position the company for success in a changing economic landscape and the challenges of game development and market delivery. Post also apologized if staff learned about the news through social media or trade press, citing Sega's legal obligation to first notify the Tokyo Stock Exchange. This move is the latest in a series of layoffs across the gaming industry over the past year, with many major companies reducing their workforce due to slow growth and increasing costs.