As the economy continues to flounder, it seems no one is immune from its bite. Sega of America and Microsoft are the latest video game maker to announce layoffs. Sega has let 30 people go in an effort to streamline its operations and reduce costs. Sega has issued an official statement about the move: “Sega of America has grown at pace with the booming videogame industry, but at this time of economic recession, harsh retail landscape, and the reality of business challenges to profitability, we must take steps to reduce our cost structure and ensure long-term success."
Sega joins a long and ever-growing list of video game and related companies that have announced layoffs. Some of the more notable firms to slice their staff numbers have included Midway, EA, Funcom and Sony. Microsoft also announced it will let up to 5,000 go across many of its departments.
Although I don’t have a crystal ball to predict what will happen tomorrow, next week or next year, it is interesting to note that Nintendo has been largely quiet in this economic downturn. In fact, some industry writers and analysts say that company is actually experiencing somewhat of a boom.
In Canada alone, the Wii sold nearly 700,000 units without Christmas season sales. About 10.2 million consoles sold in America.
If Nintendo is any indication, the companies that will do well in this recession are those that are lean, mean and offer products that provide not only entertainment, but also value. While it’s hard to find good news in the recession, if anything, maybe a return to good old fashion value for money invested will be witnessed more in the gaming world and outside of it, as well.
Related:
Sony Adds More Proof That Gaming Industry Isn’t Immune
Video Gamers Have A 1 Up On The Economy
Labels: microsoft, Nintendo, nintendo wii, sega, Wii
