Sega Cancels Creative Assembly's Hyenas as Part of Restructuring Efforts

In a recent announcement, Sega revealed the cancellation of Hyenas, an upcoming title from Creative Assembly, citing 'structural reforms' as the primary reason. This decision is attributed to a rapidly shifting business landscape, marked by declining demand for stay-at-home entertainment following the COVID-19 pandemic and the ongoing economic downturn in Europe fueled by inflation. The cancellation of Hyenas is part of a broader restructuring effort that also involves the termination of other unannounced games, although the specific studios affected have not been disclosed. Sega anticipates recording a significant loss of approximately ¥14.3 billion ($95.7 million) for the fiscal year concluding on March 31, 2024. The company's statement highlighted the need to reassess its title portfolio in response to lower profitability in the European region, leading to the cancellation of Hyenas and other projects. This move will result in a write-down of work-in-progress for the affected titles. According to reports by Eurogamer, layoffs are expected, prompting GamesIndustry.biz to reach out to Creative Assembly for comment. Hyenas, a sci-fi first-person shooter announced in June 2022, had recently completed its closed beta and received largely positive reviews before its planned release this year. In an update, Creative Assembly confirmed the initiation of a redundancy consultation process, acknowledging the potential for job losses. The studio expressed its commitment to prioritizing support for its employees throughout this challenging process, aiming to minimize job losses by relocating affected staff to other available roles within the company whenever possible. Despite this setback, Creative Assembly reaffirmed its dedication to its existing projects and player base, looking forward to sharing future plans.