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Sega Cuts Jobs and Cancels Games, Trying a More Focused Approach Going Forward

March 30, 2012Written by Alex Osborn

Sega is in a sticky situation. Business has not been going well for the company, so a lot of restructuring has begun to take place.

As such, it looks like Sega will be canceling a number of games they were working on, which means many of their employees will be let go as well. Parent company Sega Sammy has already begun warning investors that because of its struggling games division, earnings are not where they hoped they’d be.

The company attributed the losses “to the challenging economic climate and significant changes in the home videogame software market environment in the US and Europe.” In an effort to turn things around, Sega will be undergoing some major changes that involve a much more “streamlined” and focused approach.

Additionally, Sega Sammy spoke to the importance of “strengthening development in the field of digital content” going forward. I find this a bit ironic, considering the fact that the company no longer plans to make future episodes of Sonic 4, a move that appears to directly contradict their new strategy.

Will Sega be able to pull itself out of the mess it has created? Share your thoughts in the comments below.