Sega Sammy have announced that due to under performing sales, it needs to streamline the business.
The company has lowered it’s forecast by half from just over £300m to £153m, “due to the challenging economic climate and significant changes in the home videogame software market environment in the US and Europe.”
Sega are planning “to streamline organizations in the field of home video game 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.”
Unfortunately this means job losses, and the loss of projects are described as “refocusing”, with this resulting in “smaller company positions for sustained profitability”, meaning Sega will drop under performing I.P’s instead, milking Sonic, Total War, and Football Manager while developing the Aliens game.
Sega Sammy are expected to report losses of £54.3m, with £37.5m due to the restructuring of the business.