News Sega Restructures Consumer Division, Projects 7-Billion-Yen Loss
posted on 2012-03-30 23:25 EDT
Sega Sammy Holdings Incorporated announced a restructuring plan for Sega Corporation's consumer division on Friday. According to the press release posted on the company's website, the reform is being implemented due to "challenging economic climate" and changes in the U.S. and European video game market. The company also projects a 7.1-billion-yen (about US$86 million) loss for the current fiscal year, and has made the decision to cut its losses.
The reform measures will consist of streamlining Sega's consumer organizations in the United States and Europe, reducing the number of titles by canceling the development of some games, booking impairment losses, and processing inventory. Sega Sammy Holdings Incorporated expects operating expenses for the consumer division to decrease with the reform.
In 2005, Sega Sammy Holdings Incorporated acquired 50.2% of TMS Entertainment's voting shares and made the anime producer a consolidated subsidiary. TMS Entertainment is not listed as part of the restructuring.