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SEGA acquires casino provider for $100 million, also fires a bunch of developers

2023 has been an interesting year for the video games industry. We have seen a whole host of publishers spending millions or even billions on acquiring various companies, all the while making 1000s of game developers redundant. SEGA is the latest company to take part in this confusing trend – announcing that they have spent $100 million on a casino provider while simultaneously implementing a “headcount reduction” at its studios.

As part of the company’s FY2024/3 Q2 Results / Forecast, SEGA Sammy announced that they will be conducting a structural reform in order to increase profitability. Alongside the previous announcement of the cancellation of HYENAS, SEGA has revealed that they will “implement rationalization measures including headcount reductions, centered on Creative Assembly.”

For the uninitiated, Creative Assembly was in charge of the development of the recently-cancelled HYENAS – though they are known best for having developed the much loved Alien: Isolation.

Adding further insult to injury, the company then announced that they would be spending $107.6 million to acquire casino provider and B2C online gaming operator GAN Limited, saying:

“Sports betting, which has been legalized in many states, is a high-profile market with increasing competition, a growing user base, high customer acquisition costs, and diverse needs. While the U.S. iGaming market is still limited to six states, there are ongoing discussions around legalizing iGaming in additional states. If we can enter the U.S. iGaming market before broad legalization, it could provide a promising opportunity to grow our presence in the U.S. iGaming market.”

The juxtaposition of these two announcements is certainly ironic, and lends further proof to the notion that many of the issues seen within gaming companies currently is due to the decision-making of those at the top – wanting to pursue potential ‘profit’ at the expense of all else.

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KitGuru says: What do you think of these announcements? Has 2023 been one of the worst years for the games industry? Let us know your thoughts down below.

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