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SEGA Sammy announces huge loses, SEGA to restructure

Sega Sammy has announced that it’s set to cancel games and streamline operations as a result of underperforming sales.

The company has forecast a profit for the year of  ¥20 billion (£153m), half of the ¥40 billion it had forecast for the period.

Sega Sammy says that its consumer business is the main cause for concern “due to the challenging economic climate and significant changes in the home videogame software market environment in the US and Europe.”

In order to return to profit, Sega says it’s “essential to streamline organisations in the field of home videogame software in the US and European markets while shifting to a structure that corresponds to [this] change in environment, including strengthening development in the field of digital content.”

What this means for SEGA is both job losses and some refocusing, which will result in “a smaller company positioned for sustained profitability.” Part of this refocus will include concentrating on its stronger IP’s such as  Sonic The Hedgehog, Football Manager, Total War and Aliens. Other titles are to be cancelled entirely.

Sega Sammy’s planning to record “extraordinary” losses of ¥7.1 billion (£54.3m), of which ¥4.9 billion (£37.5m) will be associated to the restructure.

Thanks EDGE/Neogaf.

Edited On 30 Mar, 2012

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