SEGA Studios Australia Closing Down Later This Year

Sega's Australian development studio, once known as Creative Assembly Australia and responsible for games like Medieval II: Total War, is to be closed down. Sega confirmed the move with Kotaku today, saying the developer will be shut down "later this year".


Comments

    https://www.youtube.com/watch?v=rY0WxgSXdEE

    Oh yeah, hinder Australian video game development even more, Sega.

    Sega had an Australian developer? I know of Creative Assembly (Love Medieval 2) but i wasnt aware of the Australian connection. Huh, that sucks.

    Well that sux, but what do you expect with the current economic conditions and government.

      Business tax is to high in Australia, and for a games developer who might only put out 1-2 games every 18 months of so I can see why.

      Do you know how I know you get your 'facts' from the Liberal Party and their News Limited propaganda machine? You're so unbelievably wrong it's not funny. Unless you are running a sweatshop, or are in an industry where the strength of the dollar is an issue (and even then you should be able to mitigate it) then all international data indicates Australia is a great place to do business.

      But you believe the lies that clown Hockey puts out in order to turn our economy into a mirror of the US. And you should at least be able to work out how well THAT turned out.

        or are in an industry where the strength of the dollar is an issue

        Guess what?

        Game development is an industry where the strength of the dollar is an issue.

          Not entirely true. That's only really true if you're in work for hire. As a Sega internal studio the strength of the dollar would be less of an issue, even if it's an added pressure. But since Australia is seen as having some of the smartest people in the world, it's generally considered worth the cost. I am totally guessing but I suspect the decision was purely operational.

            It's ESPECIALLY true because they were a Sega Internal studio.

            Being in Australia meant that they needed to pay higher wages, and the cost of keeping the studio running was also higher (rent, electricity, etc). It's exactly the reason why THQ shut down their two Australian studios first, why Midway shut down Ratbag first, why EA and Atari have closed down or sold their Australian studios.

            I've had personal experience a number of times during my 10 or so years in the local game development industry here.

              Too true. If you need to save money. You close the most expensive studio. Unless that studio was making a hugely successful IP. Which it wasn't. Sega Australia was doing some work for hire. They did London Olympics. The only way for australian devs to stay in business with the dollar how it is, is to work on their own IP. And do it well.

        Lol discussing politics on the internet. Ok. Not that Australia is a bad place to do business, its that when looking at other places in terms of the games industry we get shit all benefits. Look at Canada for instance. The whole tax thing. Here in aus we get carbon tax on virtually every little thing. And people charging electric cars on electricity produced by a coal burning plant. And then there are companies such as Autodesk where we get charged double for the same thing you get in the US. those licenses are required if you want to publish anything to sell anything.

        And when youre selling to a global market, due to the strong dollar you lose a little overall if you dony develop else where. These things add up.

        if they really want to help the aus gaming industry then they should introduce some tax benefits as well as stimulus packages towards that market. Which they have done once, though not the tax part. Also there are no sides on this matter. Next election: whoever wins , we lose.

          electric cars charging from fossil fuel fed power is a valid concern but it is a first step. removing cars is far easier, quicker and cheaper before removing the larger, more expensive and much longer roi infrastructure investments like power plants.

            Yeah, but we already have the tech to produce power other ways. Its just that with all the coal lying around and how could any CEOs get any bonuses if a few million extra had to be spent on maintenance of green tech power plants. Just doesn't sound feasible. Btw i am bein sarcastic and I do agree with you. At this current state any sort towards better is a good step, no matter how small or big.

        Yep strength of our dollar is a massive issue. Why build a game here when you can do it in the US for half the price and twice the quality?

          yep lets all drop our wages and standard of living so we can compete with a job market 10 times our size. heck, lets just become the 51st state of the USA! developers living on tips - imagine how good the games will be!

          also twice the quality? like to to see your numbers supporting the quality of oz developed games vs overseas.

            You've been living under a rock if you need somebody else to tell you that US or British game studios as a whole have done better in quality or profits in the last, like 20 years. The only exception has been some mobile games developers like Firemint and Halfbrick, but AAA no we've been sucking at that forever.

            I agree that we can't and shouldn't compete on low wages, but for the meantime with a remote location and strong dollar those business are giving us no chances.

            really? I didn't know game developers live on tips in the US and some how they have managed to make the best games in the world.
            If that is true, doesnt that mean Aussie developers are crap considering they get paid better yet most of the games they made are not as good?
            I don't know about you but if I have to choose between everyone dropping their wages to keep the industry going or keep asking for the same amount of pay and get the whole industry killed, I think I will take the pay cut.

            Zen don't bite my head off for what's true.
            I like Australia's high standard of living however it does result in a certain undeniable fact that it is expensive to manufacture here. In economics they say you should produce goods you have a comparative advantage in and let other countries produce the goods you don't have one in. 2 classic examples of sectors we don't have a comparative advantage in are car manufacturing and video game making.

      conditions in australia are FAVORABLE to business - we are seeing lots of foreign investment.
      the carbon tax that everyone harps on about, isnt stopping companies from pumping their dollars in over here.

        All the foreign investment is going to our mines and farms, not to other businesses.

        erm.....I am not sure where you got your info (or world view) from.... but Australia is definitely not good for business operations. Tax, wages, benefits and overhead costs are alot higher compared to other countries and infrastucture is much worse. If by foreign investments, you are talking about carry trade and mining investments, thats a whole other story.

          foreign investment is foreign investment. i am making no distinction on the market being invested in.

    Was is the Australian branch that was primarily responsible for the Spartan Total War game?
    Shame anyway, hopefully it doesn't impact the Total War series (the REAL ones, not like the new spin-off coming out on touch). Absolutely love the Total War games, though admittedly I much prefer the swords and spears and arrows of the Rome/Medieval era than the boring boring boring musket / canon stand-offs of Napolean and Empire.

      It wont affect total war they just helped make it they weren't the main dev's

      Last edited 05/04/13 10:49 am

      They made Medieval 2, which is THE BEST.

        Agreed, I still play M2TW all the time, like even when playing a different game (Hitman Absolution at the moment) I always have a M2TW campaign running, using either Stainless Steel mod or Third Age, depending whether I am feeling LOTR or Medieval Europe. Such a great looking game still. Interested to see how Rome2 will end up.

      The Brisbane studio is the studio that created the higher rated, higher selling games of the Total War series and were consistently less buggy than what the other studio pulled off so I have no idea why Sega is doing this.

    You know how I know you get your 'facts' from the Liberal Party and their News Limited propaganda machine?

    'Here in aus we get carbon tax on virtually every little thing.'

    No, we don't. And it's a miniscule effect that at this point in time is subsidised to the hilt. And it's not a 'tax'.

      Yeah we do. Why would all people on the doll get a few bucks increase on income specificly stating to cover for the carbon tax? Don't get me wrong I'm working and getting taxed 30%, which to me feels quiet a lot.

        /facepalm

          Facepalm all you want. But it all adds. Just cause something doesn't get affected directly does not mean its not affected at all.

        double facepalm.

        Please don't vote until you educate yourself with something other than obvious conservative propaganda.

        The carbon price affects a very small number of businesses (who are being subsidised) and the flow on from them is realistically limited.

        However, you have a lot of Liberal-voting business owners who use this opportunity (as they did with the GST) to artificially hike prices and blame the 'carbon tax' as they know people as uneducated and gullible as yourself will believe them and blame the government while they profit.

        The government has systems in place to try and punish people who do it but that relies on people being smart enough to report it - and you are proof of the large number of Australians who rely on Liberal Party propaganda for their knowledge and therefore aren't capable of telling when they are being scammed.

        Don't worry if Abbott gets in you won't need to worry about losing money indirectly through a mythical 'carbon tax', he'll make sure you lose the money directly and clearly to the pockets of his corporate sponsors.

          Like I said in the previous comment on this article. Don't care what side wins, whoever wins we lose. I do hope you get the reference. Not hard to get.

          As for the carbon tax never really payed much attention t it untill I had to translate a letter for some people about their income incraseing from the government due to something to do with carbon stuff and all.

          then it got me thinking about the whole combination of gst super and hex. So yeah any idea why people on the doll would be getting the incrase specoficaly stating that its to cover the cost of green energy living?

          by any chance you are an accountant or study accounting?

            Learn to bloody spell.

    Yet more evidence that the game industry is crashing

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