"Consumer Business centered on SEGA Corporation is expected to post operating loss in the year ending March 2012, due to the challenging economic climate and significant changes in the home video game software market environment in the U.S. and Europe," reads a SEGA press release.
"Given this circumstance, the companies determined that in order to actualize earnings recovery of the Consumer Business in the following period and after and 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."
"We conducted detailed reviews of earnings projections for titles targeted toward the U.S. and European markets and decided to narrow down sales titles from the following period and after to strong IPs, such as 'Sonic the Hedgehog,' 'Football Manager', 'Total War' and 'Aliens' which are expected to continue posting solid earnings," continues the release.
"In accordance with this, we are canceling the development of some game software titles."
"Given this circumstance, the companies determined that in order to actualize earnings recovery of the Consumer Business in the following period and after and 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."
"We conducted detailed reviews of earnings projections for titles targeted toward the U.S. and European markets and decided to narrow down sales titles from the following period and after to strong IPs, such as 'Sonic the Hedgehog,' 'Football Manager', 'Total War' and 'Aliens' which are expected to continue posting solid earnings," continues the release.
"In accordance with this, we are canceling the development of some game software titles."
At this time, there is no word on just how many jobs will be affected nor what titles have been cancelled.