Sega Sells Iconic Strategy Game Studio, Lays Off More Total War Developers

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Relic Entertainment is once more independent: Sega has left the legendary strategy game studio to fend for itself as part of its current campaign to get Sega Europe out of its performance slump.

Relic is a household name for anyone playing real-time strategy games, being the studio behind some of the genre’s greatest representatives – Company of Heroes, Warhammer 40,000: Dawn of War, Homeworld, and Impossible Creatures were all created by the Canadian studio. Recently it co-developed Age of Empires 4 with Microsoft’s World’s Edge Studio and shipped Company of Heroes 3, though the latter was not well received by the series’ fan base.

Sega acquired Relic Entertainment in 2013 for $26 million USD after previous owner THQ went insolvent. The Japanese company will transfer Sega’s shares to a UK-based investment group called Emona Capital. Details of the deal are being kept hidden “due to the request of the transferee,” according to Sega.

“Sega is working closely with Relic on this shift, and we wish them the best for the future,” wrote Sega Europe’s chief, Jurgen Post, in an email shared with staff. “I want to sincerely apologise for the worry and understandable distress this news will cause, particularly for those directly affected. These decisions have been incredibly tough to make, and they follow meticulous consideration and deliberation with leadership teams across the business. Change is necessary to secure the future of our games business, and to ensure that we are well placed to deliver the best possible experiences to our players going forward.”

He continued: “We need to streamline, focus on what we are good at, and position ourselves as best we can for the road ahead. In order to do that, we need to respond to the changing economic landscape and the challenges we’re facing in the way we develop our products and bring them to market.”

A statement by Relic Entertainment thanked Sega and ended on a positive note:

In addition to this divestment, Sega announced that 240 employees in Europe will be laid off – according to GamesIndustry, this affects Sega Europe, Sega Hardlight, and Total War developer Creative Assembly. This will be the second round of layoffs for Creative Assembly in a span of six months, since positions had already been made redundant after the last-minute cancellation of its live-service shooter Hyenas in 2023.