Sega Studios Australia shutting this year

Sega Studios Australia will be shut "later this year" as part of the Japanese publisher’s ongoing restructuring efforts.

A Sega representative confirmed the news to Kotaku, which reports that the studio was once known as Creative Assembly Australia due to its work on Medieval II: Total War and Medieval II: Total War - Kingdoms. It also made Stormrise and, most recently, London 2012: The official video game of the Olympic Games.

Gamasutra reports that the studio suffered layoffs around a year ago when parent Sega announced plans to restructure in order to “create a smaller company positioned for sustained profitability”. A representative said they couldn’t yet provide specifics on the studio’s closure, such as how many employees will be affected, as the move is still "under consultation”.

While it has shrunk its business over the past year, mainly across its publishing and distribution divisions, Sega recently acquired Company of Heroes developer Relic Entertainment from THQ for $26 million.