31 Mar

With their net income projections for the financial year ending March 31st slashed by almost 50% (¥18 billion from ¥38 billion) – and a ¥7.1 billion loss overall – Sega has announced some stiff reductions across the board for its Western Operations. Both the company’s EU and US offices are expected to take heavy – if yet undetermined – losses, in efforts to “create a smaller company positioned for sustained profitability.”

Sega’s recently released press statement on the matter reads, in part, “Consumer Business centered on SEGA Corporation is expected to post operating loss in the year ending March 2012, due to the challenging economic climate…in the home video game software market environment in the U.S. and Europe…Given this circumstance, the companies determined that in order to…return to a growth path, it is essential to streamline organizations in the field of home video game software in the U.S. and European markets, while shifting to a structure that corresponds to change in environment, including strengthening development in the field of digital content.”

Only the Aliens, Football Manager, Total War, and Sonic franchises have been declared immune from cancellation, all other IP owned by Sega is reportedly at risk. Sega has released no specifics yet on its expected losses in both manpower and software.

(via GamesIndustry.biz)