Sega axing staff and games in US and UK due to poor fiscal forecast

Sega is undergoing major restructuring within its US and European operations after informing investors of a 47.7% decrease in expected net sales for the fiscal year ending March 31.

According to documents posted by Sega Sammy today, the longtime game company expects to post lower-than-expected net sales for the last fiscal year, which ran April 1, 2011 to March 31, 2012. Specifically, the company predicts it will fail to meet its previous estimation of 38 billion yen ($460 million) by a large margin, and instead end the year at $20 billion yen ($240 million). As a result, its board of directors has decided to pursue “streamlining” actions within its western operations; actions that will take even more coin out of Sega's pocket.

“We will streamline organization in the US and Europe home video game software,” reads the statement. “This will create a smaller company positioned for sustained profitability.”

In addition to slimming staff, Sega announced it will be canceling the development of a number of games, while focusing on proven franchises like Sonic the Hedgehog, Aliens, Total War, and Football Manager. It did not say which of its upcoming titles were on the chopping block, but we expect we'll know which games to pay our respects to in the coming months.

UPDATE: Reports are hitting the net that the San Francisco offices of Sega of America have been shuttered. Is this the end of Sega's committed American offices? Just how severe are these cuts?