Sega Canceling Games, Cutting Jobs
Due to an expected net income drop of 47.4% by Sony’s fiscal year end, Sega Sammy’s board of directors have set in motion a plan to reduce operating costs in the future, which involves canceling games and cutting jobs.
Sega’s operations in the US and Europe will be “streamlined” to “create a smaller company positioned for sustained profitability.” There is currently no word on how many jobs are being cut to create this smaller company.
The other casualty of this plan is to have Sega focus on franchises the company expects to be profitable in the US and Europe, including Sonic, Football Manager, Total War, and Aliens. That refocusing means some games have been canceled, though specific titles were not announced.
Sega’s expected profits have dropped from 38 billion yen ($462 million) to 20 billion yen ($243 million,) with sales revenue decreasing by about a half-billion dollars. The reform plan is estimated to cost 7.1 billion yen ($86.5 million).