SEGA posts 7.1 Billion Yen Loss, Cancels Projects and Restructures
Sega Sammy Corporation has just announced that the organization's Board of Directors approved a plan to implement structural reform in Sega Corporation. This is following a loss of 7.1 billion yen ($85.7 million dollars) for the fiscal year of 2011. According to the report released on March 30, 2012 the organization blamed the financial downturn and "significant changes in the home video game software market environment in the U.S. and Europe." The organization will be taking four major measures to ensure future profitability: streamline operations, reduction of titles, book impairment loss on work in process assets, and streamline process of inventory. Sega will streamline operations in North America and Europe, which means that the organization will be downsized and redundant positions will be removed. The organization is taking quick action, since there have been rumors circulating about heavy personnel changes in Sega of America. The organization will be reducing tit...