Sega invests in mobile game developers
Sega is expanding its stake in a number of mobile game developers. The publisher buys the American Demiurge Studios and invests in the English Space Ape Games and the American Ignited Artists. The investments coincide with a layoff.
Sega acquires Demiurge Studios, a Boston-based studio best known for Marvel Puzzle Quest. At the same time, Sega takes a majority stake in San Francisco-based Ignited Artists, a new studio working on its first project. Sega also invests in Space Ape Games, an English studio known for Rival Kingdoms. The investments were made by Sega Networks, the mobile arm of the Japanese publisher.
The investments follow shortly after the announcement that Sega has to reorganize. At the end of January, the publisher announced that 300 employees will be laid off. Sega is trying to get rid of employees through early retirement, but layoffs will also fall. Especially in the US, the publisher is going to cut. For example, there are 120 layoffs at the publisher’s office in San Francisco. At that round of layoffs, Sega already announced that it wanted to focus more on mobile games.