SEGA set to record operating loss in excess of 7.1 billion Yen
SEGA is set to record an operating loss in excess of 7.1 billion yen ($86.5 million USD) in the year finishing March 2012. This loss will hit the company hard, and as a result not only will SEGA be pruning their workforce, they are also going to be cancelling work on certain games currently under development with the company. According to the company, the loss is a result of the “severe economic environment in the US and Europe and rapid change in market environment of home video game software.”
According to the company, in order to counter this loss, they “will streamline organisation in the US and Europe home video game software. This will create a smaller company positioned for sustained profitability.”
After announcing they would be cancelling the development of some games, whilst not providing details regarding which games have been canned, they did provide a statement listing games which are safe:
“We conducted detailed reviews of earnings projections for titles targeted toward the US 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.”
We’ll keep you updated on developments as they occur. Here’s hoping Bayonetta, which is noticeably absent from the list of ‘safe’ games, will not suffer a cancellation mid-development.