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

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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?

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11 comments

  • Octaviux - March 30, 2012 6:33 p.m.

    It is quite sad, I have great memories from playing on the SEGA Genesis growing up. Unfortunately they haven't put out any games in the last couple years that I've had any interest in.
  • OohWiiUILookJustLikeBuddyHolly - March 30, 2012 3:58 p.m.

    Sega brought us the best action game of this generation, arguably the best horror game of this generation, the most ambitious kinect game of this generation and in my opinion the best kart racer this generation... Now that I think about it Sega must be one of my favourite developers... This is sad.. I hope JSR is safe.
  • WTeen8 - March 30, 2012 12:59 p.m.

    lets hope they can release jsr, the collab with capcom and namco and project hell yeah still.
  • MetroidPrimeRib - March 30, 2012 12:25 p.m.

    I fucking quit games
  • shawksta - March 30, 2012 11:17 a.m.

    Poor sega, they were getting back on track, they need to work harder to have more brighter days! I just hope their mystery 3DS collab with Capcom and Namco doesnt get axed
  • Ded - March 30, 2012 10:52 a.m.

    Hope this doesn't mess up the release of Anarchy Reigns.. Or Jet Set Radio HD. :/
  • Genericide - March 30, 2012 10:12 a.m.

    That's a shame. Obviously Sega has had some missteps but I quite liked Sonic Generations and it's never a good thing when so many people lose jobs.
  • SouthTippBass - March 30, 2012 9:58 a.m.

    Final nail in the coffin for Shenmue 3?
  • Scuffles - March 30, 2012 9:47 a.m.

    So sales are projected to dip and instead of taking a risk they slap some HD paint on decades old franchises. Oh well who am I to complain the only thing SEGA has announced that has peaked my interests has been PSO2 and that hasn't even been released in beta in Japan :P
  • onetimebuster - March 30, 2012 9:36 a.m.

    I hope they will still make yakuza games.
  • thochaos - April 9, 2012 1:39 a.m.

    You and me both.

Showing 1-11 of 11 comments

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