SEGA Sees Massive ¥7.1 Billion Loss

SEGA hasn't been struggling in the gaming market lately, and now SEGA Sammy has announced its latest financials. Most notably, last year's operating losses are so huge that planned games will need to be cancelled, as well as a restructuring of the company. Total losses are said to reach as high as ¥7.1 billion (~$86.5 million).

SEGA Sammy blame the losses on "the severe economic environment in the U.S. and Europe and rapid change in market environment of home video game software." As a result of the loss, the company plans to cancel games currently in development, and noted that "it is essential to streamline organizations in the field of home video game software in the U.S. and European markets."

The document accompanying the financials doesn't go into detail about the exact plan SEGA hope to undertake, but it does mention "creat[ing] a smaller company positioned for sustained profitability." SEGA also hope to rely on their existing game IPs, like Sonic, Football Manager, and Aliens, in order to weather the storm.

SEGA Sammy project net income to be ¥20 billion (~$244 million) for the financial year, down on their previous projection of ¥38 billion (~$463 million) as well as results from last year, ¥41.5 billion (~$506 million).