A 7.1 billion yen loss pushes Sega to reshape the company, cutting down the number of retail games it creates and pushing more into digital. Layoffs are, unsurprisingly, a part of that formula. Sega will now focus on four key franchises: Sonic the Hedgehog, Football Manager, Total War, and Aliens.
Blaming an "unprecedented change in our industry" Sega president told Vox Games today that its plans to slim the company could result in a number of layoffs "within the publishing business across the Western organisation."
Early this morning, Sammy Sega Holdings reported that it expects Sega's operating loss for the previous year to reach7.1 billion yen and that they planned to slim down the company.
Reached for comment this afternoon, Sega of America president and COO Masanao Maeda tells Vox Games that the company is consolidating its publishing business to focus on "developing digital...
Citing the challenging economic climate and changes in the video game market in the U.S. and Europe, Sega Sammy this morning said it expects Sega's operating losses for the previous year to reach into the billions of yen and that they need to cancel game development and shrink the company.
Reeling from an expected 7.1 billion yen loss, Sega Sammy officials say they need to "streamline organizations in the field of video game software in the U.S. and Europe." That means a significant cut in games under development, shifting to the digital market and a high likelihood of layoffs.