Sega closing multiple offices to focus on digital, stronger IPs

Sega will close down a number of its offices globally this weekend, in a bid to switch its business to digital content while focusing on select, stronger IPs. The company said it will shut down offices in France, Germany, Spain, Australia and the Netherlands from July 1, with outside distributors taking over sales in those areas. The company's UK headquarters will remain open. Koch Media and Level03 Distribution will deal with Sega's distribution in Germany, Switzerland, Austria and other European countries, while 5 Star Games will help with distribution in Australia. London 2012: The Official Video Game of the Olympic Games will be the last retail game that Sega has direct distribution duties over in those areas. Jurgen Post, COO of Sega Europe, said that the company will be focusing on strong IPs like Sonic the Hedgehog, Total War, Football Manager and the Aliens franchise in the future. Last month, the company posted declined revenues and profits for the full 2011 fiscal year, and said that it plans to combat this decline with further focus on digital and mobile games. As a result, Sega said that it would initiate layoffs within its U.S. and European home video game business, with a reduction in future video game releases on the cards.