SEGA to Lay Off Staff, Cancel Games in Light of Financial Losses
Written Friday, March 30, 2012 By Lee BradleyView author's profile
SEGA has announced its intention to execute stringent job cuts across its European and US businesses. The redundancies mean several game currently in production will be axed.
The news comes as the company reports that its net income will be around half of what it expected, recording a ¥7.1 (£54.3) million loss, with a further ¥4.9 billion (£37.5 million) earmarked for the restructure.
It is not known which studios and divisions have been targeted for cutbacks. Neither is it clear what games will be ditched as a result. A statement from the company merely said, "We are cancelling the development of some game software titles."
“It is essential to streamline organisations in the field of home video game software in the US and European markets, while shifting to a structure that corresponds to change in environment, including strengthening development in the field of digital content.”