Games

Sega Shakes Up Studios and Sells Relic Entertainment

A shakeup at Sega as they announce layoffs across subsidiaries and sell off Relic Entertainment, the renowned developer behind Warhammer games.
Sega Shakes Up Studios and Sells Relic Entertainment

Highlights

  • Relic Entertainment, famous for real-time strategy games, has transitioned to an independent studio after being sold by Sega to an undisclosed investor.
  • Sega is implementing layoffs at various subsidiaries like Creative Assembly, known for the Total War series, due to financial difficulties.
  • Despite the uncertainty surrounding the changes, Relic commits to supporting its games, including the recently launched Company of Heroes 3.

Sega has revealed plans for workforce reductions at three of its companies while also finalizing the sale of Relic Entertainment, a prominent developer responsible for multiple hit franchises. Relic Entertainment, established in 1997, has a track record of successful games including various Warhammer 40,000 titles, Company of Heroes and its sequels, the initial two games in the Homeworld series, and Age of Empires 4. The studio is well-regarded for its expertise in real-time strategy games alongside ventures into other genres.

Back in 2013, during bankruptcy proceedings, the now-defunct THQ offloaded Relic Entertainment to Sega for $26.6 million. During this transition, Relic's Homeworld series was acquired by Gearbox Software, and Embracer-owned THQ Nordic secured the rights to Impossible Creatures, one of Relic's early releases.

Rumors of internal challenges surfaced in May 2023 when Relic announced a restructuring that included laying off 121 employees. This move coincided with industry-wide hardships affecting numerous game developers, leading to ongoing layoffs. Now, Relic confirms its sale by Sega to an anonymous investor, marking its independence from the parent company.

The long-term implications of this shift for Relic remain uncertain. However, the studio reassures fans of its commitment to maintaining support for titles like Company of Heroes 3, which debuted in February 2023 to critical acclaim. It's unclear if Relic has commenced work on a new project post the Company of Heroes 3 release.

Sega's Workforce Reductions Extend Beyond Relic

Alongside the sale of Relic, Sega confirms layoffs at other subsidiaries, affecting a total of 240 positions at Sega HARDLight, Sega Europe, and Creative Assembly, the studio behind the popular Total War series. The reasons behind the workforce adjustments at Creative Assembly remain undisclosed, although Sega had previously scrapped the studio's multiplayer shooter Hyenas in September 2023.

Sega attributed the layoffs and project cancellations in 2023 to challenging financial conditions. Jurgen Post, head of Sega Europe, stated in a March 28, 2024 email that the sale of Relic, studio restructurings, and resulting layoffs are responses to the evolving economic environment and the challenges in product development and market delivery.

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