Sega pays dearly for increased investment in console development, advertising

Photo from the Sega annual financial review meeting.

A new report by Gamespot on Sega’s expected financial results helps put into perspective some of the dramatic corporate restructuring they’ve undergone in recent weeks.

Sega had, according to the report, dramatically increased their spend on both development and marketing by 27% and 53% respectively, resulting in some $210 million being pumped into development and $73 million into advertising. This is in-line with Sega’s apparent gamble on the console market, betting big on multi-platform titles.

While the increased development spend will see, at the end of March, a total of 50 games released under Sega’s banner, the estimated number of units to be sold for all of them is somewhere in the region of 5.4 million units. Consider, if you will, that Assassin’s Creed: Unity alone has sold more games than Sega’s entire 2014 catalogue combined. Ouch.

Alien: Isolation was the saviour in Sega’s Sales Isolation with 1.76 million units sold, but ultimately after expenses Sega will bank a paltry $18 million in profit. As such, Sega is looking at dramatically restructuring their business, cutting 300 redundant positions and shifting their focus to the mobile (eh.) and PC (More Valkyria Chronicles, please) market.

Source: Gamespot