Sega has unveiled a restructuring plan that entails the cancellation of Creative Assembly’s highly anticipated shooter, “Hyenas,” along with various other projects within the broader Sega organization. This strategic overhaul, spearheaded by Sega Sammy, the parent company, primarily targets the company’s European divisions. As a consequence of these actions, Sega anticipates incurring financial losses for the current fiscal year.
In an official statement, Sega noted, “The consumer landscape has been undergoing rapid transformations, marked by a downturn in demand stemming from COVID-19 stay-at-home measures and economic challenges linked to inflation in the European region, resulting in diminished profitability, especially in our European operations.”
In response, Sega is embarking on a series of measures to “implement structural reforms aimed at enhancing efficiency,” with a primary focus on its European operations.
Creative Assembly’s near-release title, “Hyenas,” has been abruptly canceled, alongside undisclosed unannounced projects. Sega elaborated, stating, “As a result, we will be writing off work-in-progress for titles currently in development.”
“Hyenas” had previously been described by Sega management as a “challenging” project. A closed beta for the game was conducted in late August of this year.
According to an insider speaking to IGN, the Creative Assembly team responsible for “Hyenas” received news of the cancellation on the same day as Sega’s official announcement. While concerns had been circulating within the team regarding the game’s potential performance, the proximity of the cancellation to its scheduled release came as a surprise to many, as reported by IGN.
IGN further reported that the entire “Hyenas” development team is now facing disbandment, with additional downsizing expected to impact various departments within Creative Assembly. The studio is renowned for its Total War series, with the latest installment, “Total War: Pharaoh,” slated for release in October.
“Hyenas” was described as a hero-based multiplayer extraction shooter, where players assumed the roles of “Hyenas” and collaborated with others to execute heists against four rival teams.
In a show of solidarity, Senior Brand Manager David Burroughs shared a photo of the team gathering for drinks after the news of “Hyenas” cancellation was made public.
Sega also indicated its intention to curtail fixed expenses across “several group companies” in Europe, with a primary focus on Creative Assembly. Among Sega’s other European studios are Relic, Two Point Studios, Amplitude Studios, and Hardlight.
Although Sega’s video game business is currently facing challenges in its European operations, the company reported continued success in its slot machine business. Nevertheless, due to the structural reforms, Sega anticipates recording a loss of 14.3 billion yen ($95.8 million) for the fiscal year ending March 31, 2024.
