Sega announces major layoffs across UK studios, sells Company of Heroes maker Relic

Sega has revealed significant modifications to its Western gaming divisions. The company will be eliminating 240 positions throughout its Sega Europe, Creative Assembly, and Sega HARDlight game development studios, and selling off developer Relic Entertainment entirely.

Sega has announced that the majority of job reductions will come from the Creative Assembly and Sega Europe departments. Creative Assembly is the team behind the popular strategy series Total War on PC, and they recently launched Total War: Pharaoh, set in Ancient Egypt. The studio was also working on a high-profile multiplayer game called Hyenas, which was cancelled by Sega last year during its open beta testing. It is uncertain how many of the 240 positions being eliminated are from Creative Assembly.

“According to Sega, Creative Assembly remains busy with various projects, including new developments for Total War and an undisclosed project.”

At the same time, Sega has announced the sale of Relic Entertainment, which will result in the developer of Company of Heroes and Dawn of War becoming an independent studio. According to Relic, this transition has been facilitated by an “external investor,”although their identity remains unknown. Sega has stated that they are collaborating closely with Relic during this transition and wishes them success in the future.

In addition, Relic has played a key role in creating Microsoft’s newest installment of Age of Empires for both PC and Xbox, and continues to provide support for the strategy game.

“In a social media post addressing the move, Relic assures our fans that we will continue to provide support for our titles, including Company of Heroes 3. We express our gratitude to SEGA for their support and guidance throughout the years, which have greatly contributed to our success. Although we are no longer under SEGA, we maintain a positive relationship with them as friends and colleagues.”

Important Update from Relic Entertainment pic.twitter.com/nCcF8olDaC

— Relic Entertainment (@relicgames) March 28, 2024

Today saw another significant change in ownership, as Take-Two Interactive revealed their acquisition of Gearbox Entertainment for $460 million earlier in the day.