Sad news in the world of SEGA today; SEGA Sammy have reported significant losses for the end of their financial year, resulting in job cuts and game cancellations as they focus on 'streamlining' their business model in the US and Europe.
SEGA expect their revenue for the fiscal year ending on the 31st of March to be half of what they previously estimated, down to 20 billion Yen. The company believes that this is due to "the challenging economic climate and significant changes in the home videogame software market environment in the US and Europe."
Unfortunately, this means that there will be some job losses, as SEGA have decided to immediately begin restructuring the company to focus on their core franchises, including Sonic the Hedgehog, Total War, Aliens and Football Manager, as well as focusing on releasing digital content.
SEGA have not named what these cancelled projects were or what they could have been, but it may well affect the western localisation of certain games, and may prevent SEGA from taking risks on unique IP's in the future.
What do you think of this news? Are there any new games or current franchises that you're worried about? Let us know your thoughts in the comments below or in the SEGA News Thread on the RadioSEGA.net Message Board.
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