Sega has revealed that their consumer business will post an operating loss due to “due to the challenging economic climate and significant changes in the home videogame software market environment in the US and Europe.” Sega had been on the up a few years ago but recently they have released several games that didn’t turn out to be commercially successful including Binary Domain and Vanquish. In a move that they hope will stem the tide of a bad performance, Sega said that is now “essential to streamline organizations in the field of home videogame software in the US and European markets while shifting to a structure that corresponds to [this] change in environment, including strengthening development in the field of digital content.” This is code for they are about to lay people off, though at this point it’s not known how many or exactly when they will come. On another note, Sega says it plans to focus on more established properties including Sonic, Football Manager, Total War and Aliens. Several as yet unannounced games will be cancelled as well.
This is tough to see because it seems like this is happening much too often in the gaming industry these days.