SEGA USA and Europe to restructure and downsize, several games cancelled and layoffs incurred

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It was announced today parent company SEGA Sammy Holdings that SEGA’s USA and European divisions will undergo immediate reconstruction heading into this fiscal year, with an expected net loss of ¥7.1 billion ($86.4 million) as part of the reform. The reform also entails the cancellation of several as of yet unnamed titles and layoffs across both divisions, though it was noted that strong IPs such as Sonic the Hedgehog, Football Manager, Total War, the licensed Aliens film franchise, and possibly others will not be subject to any major changes or cancellations. These changes come as a result of the company’s desire to “create a smaller company positioned for sustained profitability”, by streamlining it’s current divisions and showing greater focus on digital content going forward.

After the jump, you can read the SEGA’s official statement on the matter.

“The Sega consumer business is expected to post operating loss due to the challenging economic climate and significant changes in the home video game software market environment in the US and Europe.

“It is essential to streamline [our] organisation in the field of home video game software, while shifting to a structure that corresponds to a change in environment, including strengthening development in the field of digital content.

“We decided to narrow down sales titles to strong IPs such as Sonic the Hedgehog, Football Manager, Total War and Aliens which are expected to continue posting solid earnings. In accordance with this, we are cancelling the development of some game software titles.”

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