SEGA to record “extraordinary loss” of 7.1 billion yen
SEGA are preparing to record an “extraordinary loss”, to total around 7.1 billion yen.
Such situation is partly blamed on a “severe economic environment” in Europe and North America, SEGA Sammy report, yet the company recognises the poor sales performance of its software.
Due to this, a restructuring process will take place, and SEGA will focus upon popular IP including Sonic the Hedgehog, Football Manager, Total War and Aliens. Several projects will also be cancelled, with job losses as a result.
“Amid such business environment, the Company decided to implement structural reform of the Consumer Business at SEGA Corporation to strive for a shift to a structure corresponding to the market environment for the purpose of earnings recovery in the following period and after”, SEGA Sammy shared.
“In accordance with the decision, the Company is expected to record extraordinary loss totaling around 7.1 billion yen, including costs in line with the streamlining of organizations and the canceling of development of some game software and costs for processing inventory.
“As for the Consumer Business in the following period and after, the Company projects decreases in operating expenses due to the reform”.