In a significant shift within the gaming industry, Japanese powerhouse Sega has officially divested from Amplitude Studios, marking a pivotal moment in the developer’s journey. This move was confirmed in Sega’s recent financial release, which detailed the company’s performance for the six months ending September 30th. The report revealed that Amplitude Studios underwent a management buyout, allowing the team to reclaim their independence.
Financial Impact and Restructuring Efforts
The sale has not come without its consequences. Sega reported an extraordinary loss of approximately ¥5.9 billion (.7 million) for the second quarter of the current fiscal year, primarily attributed to the divestiture of Amplitude Studios. This decision is part of a broader restructuring initiative within Sega’s European operations, which has also resulted in layoffs, particularly at Creative Assembly, the studio behind the Total War franchise. In addition to Amplitude, Sega has recently parted ways with Canadian developer Relic, further indicating a strategic shift in its business model.
In a heartfelt message shared on Twitter, Amplitude Studios expressed its enthusiasm about returning to its independent roots. The studio, which was acquired by Sega in 2016, conveyed gratitude for the experiences gained during their time as part of the Sega family. “Amplitude is now owned by members of the internal team, meaning that the future of our studio and games is staying in the hands of those who know them best,” the post stated. The studio emphasized the incredible journey they had with Sega, highlighting the growth and friendships forged over the past eight years.
As Amplitude embarks on this new chapter, they reaffirm their commitment to the core values that have defined their identity: creativity, innovation, and a collaborative spirit with their community. “By returning to our indie roots, we’re getting back to the heart of what drives us,” they noted, signaling a renewed focus on the principles that have shaped their success from the beginning.
Meanwhile, Sega’s financial outlook reflects the challenges faced during this transitional period. For the six months ending September 30th, 2024, the company reported a 4.5 percent decline in net sales, totaling ¥211.7 billion (.4 billion). Operating income also saw a notable dip, decreasing by 18.1 percent to ¥32.8 billion (4.9 million), underscoring the impact of recent strategic decisions on the company’s overall performance.
