Relic Entertainment is officially an indie studio, as the developer behind Company of Heroes 3 has parted ways with Sega. The studio says that it will become an independently run studio in partnership with an external investor and it plans to continue supporting the games it developed at Sega.
Founded in 1997, Relic was acquired by THQ for $10 million in 2004. Following the collapse of THQ, Relic was auctioned off and was almost purchased by Bethesda’s parent company, ZeniMax. Sega acquired the studio with a winning bid of $26.6 million in 2013, and Relic continued work on sequels to Warhammer 40,000: Dawn of War, Age of Empires, and Company of Heroes. Relic joins a handful of studios that managed to regain their independence throughout the industry, like Toys for Bob and IO Interactive.
Meanwhile, Sega has joined the list of video game publishers who have instituted mass layoffs across the industry. It has cut 240 roles across Sega Europe, Creative Assembly, and Sega Hardlight, while Sega UK studios like Two Point Studios and Sports Interactive appear to be unaffected for now. Following the cancellation of the multiplayer extraction-shooter Hyenas last year, Creative Assembly was hit with layoffs, and now even more employees are being let go this year.
Last year saw several cuts at Sega as well, as the company laid off 121 staff from Relic and 61 employees were let go from Sega of America. Members of the Sega of America union AEGIS-CWA have recently ratified their first contract with Sega. several months after they were formerly recognized as a legal union.
“Sega is working closely with Relic on this shift, and we wish them the best for the future,” Jurgen Post, the new head of Sega Europe, explained in an internal email (via GamesIndustry.Biz). “I want to sincerely apologize for the worry and understandable distress this news will cause, particularly for those directly affected. These decisions have been incredibly tough to make, and they follow meticulous consideration and deliberation with leadership teams across the business. Change is necessary to secure the future of our games business, and to ensure that we are well placed to deliver the best possible experiences to our players going forward.”
Post added that Sega will be streamlining its operations and that the cuts were necessary “to secure the future of our games business” as the company focuses on developing new games based on well-known IPs. Sega has committed to providing support for affected employees with severance pay, career support, and access to independent and internal guidance where possible. Post also apologized to staff who heard the news via social media or the trade press, as Sega was obligated to notify the Tokyo Stock Exchange first.
