It seems that Sega’s forecasts for the fiscal year have been adjusted down and have revealed an expected net income that is down 47.4%. In the wake of that, it seems that Sega’s board of directors have decided to “streamline” the company’s operations in the US and Europe, and for those unfamiliar with buzzwords, that basically means that jobs will be cut and that games will be cancelled in an effort to “create a smaller company positioned for sustained profitability.” In a statement released to its investors:
“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 [...] In accordance with this, we are canceling the development of some game software titles.”
While no specific titles were mentioned, it was odd that Sega failed to mention games like Yakuza, Virtua Fighter and Bayonetta as being part of their “strong IPs”. In any case we will keep our eyes peeled on future announcements from Sega, so stay tuned.
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