Earlier today at ResetERA, Null Pointer (a member who has been verified by Era site staff as a senior localization producer at Atlus) had this to say in a thread about Sega's [current] development studios: To quickly summarize for those who don't want to check the link or can't see the quoted reply: assuming what Null says is true, CS3 is gone, with its staff folded into the remaining CS1 and CS2 groups, both of which also have new studio overheads (Daisuke Sato for CS1, Eigo Kasahara for CS2). (Sega's Online division also has a new lead (Sagawa) and may not be strictly concerned with mobile projects.) Recall that as of late... - CS1 was/is the "Yakuza" division (Yakuza series by internal Yakuza group, the Fist of the North Star and [upcoming] Judgement spinoffs) and was/is overseen by Toshihiro Nagoshi. - CS2 was/is the "Sonic" division (Sonic series by Sonic Team group, Mario and Sonic Olympics, Puyo Puyo) and was/is [generally] overseen by Takashi Iizuka. - CS3 was/is the "Miscellaneous"group that handled other projects (including but not limited to Project DIVA, Valkyria Chronicles, Shining, and M2's 3D Classics re-releases) and/is was overseen by Akira Nishino. (Please correct me if I'm wrong with any of the information above.) In addition, 4gamer yesterday also released a article about Sega Games, talking about the hiring process and the available job positions the company had. The article also included this notable bit (English translation by Google translate and original Japanese text included below), which says CS2 may be at work on a original property: The article also mentions Sega Games relocated to a new office in Osaki, Tokyo, back in August; which was done to consolidate various groups working in the Tokyo metropolitan area into one location. (4gamer linked to an article where they covered the new office's opening exhibition in September.) A more precise translation is appreciated, although at least one poster at Era says the "new IP" translation is accurate. Taking both reports into account and assuming they are both correct; this signals a significant change in in paradigm shift of Sega's focus with their games. With CS3 as a division dissolved and CS1 firmly established in Yakuza games, this points to CS2 taking CS3's mantle of working on general projects, especially with the report of that division working on a new IP. This also raises some pretty important questions as to the importance and management of the Sonic series as a whole, but I'm saving that response for another thread in the Sonic subforum. Moreover, it might also explain the numerous amount of classic Sega IP revivals --either through sequels or remakes-- outsourced to different companies, rather than production being handled by Sega in-house (such as Shenmue III, the Wonder Boy: Dragon's Trap remake, Streets of Rage 4, and the announced remakes of Panzer Dragoon 1 and 2, among others).