Despite successful titles like Valkyria Chronicles and the hotly anticipated titles like MadWorld, The Conduit, and Bayonetta, things aren’t looking too hot over at Sega. The company has been slowly losing money over the last 9 months, is closing 110 Japanese arcades, and is preparing to layoff 560 of 3100 employees.
Sega is expecting a total $235,424,993 loss by March, and therefore is preparing to hunker down and weather the storm with the appropriate cost cuts. According to Kotaku, these layoffs include employees volunteering to give up their jobs, and a 20% R&D reduction, which means certain titles in development will be scrapped.
This news comes as a bit of a surprise considering the seemingly smart moves that Sega has been making as a company recently. Perhaps they’ve put too much stock into their little blue hedgehog and the poorly received titles he’s bee featured in. Here’s hoping the best for Sega and all those affected by the company changes.
Anybody think any of the impending Sega releases can save them from the red?