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The Consumer Business centered on SEGA CORPORATION is expected to post operating loss in the year ending March 2012, given the severe economic environment in the U.S. and Europe and rapid change in market environment of home video game software. Amid such business environment, the Company decided to implement structural reform of the Consumer Business at SEGA CORPORATION to strive for a shift to a structure corresponding to the market environment for the purpose of earnings recovery in the following period and after.
In accordance with the decision, the Company is expected to record extraordinary loss totaling around 7.1 billion yen, including costs in line with the streamlining of organizations and the canceling of development of some game software and costs for processing inventory. As for the Consumer Business in the following period and after, the Company projects decreases in operating expenses due to the reform.
Please refer to “Concerning Structural Reform of Consumer Business at SEGA CORPORATION” announced on the same day for details of the reform.
We conducted detailed reviews of earnings projections for titles targeted toward the U.S. and European markets and decided to narrow down sales titles from the following period and after to strong IPs, such as “Sonic the Hedgehog,”, “Football Manager”, “Total War” and “Aliens” which are expected to continue posting solid earnings. In accordance with this, we are canceling the development of some game software titles.
Hope this doesnt mean only sonic games and football manager games in the future......
The company we love doesn't really even exist at this point (And I'd argue it hasn't for many years). Further troubles won't cause too much trouble I suspect. It's not like we have to fear about classic Sega content never being rereleased or new entries of things like Sonic the Hedgehog. Even if the worst case happens, these IP's would live on elsewhere. The Sega of today is essentially the same as Atari. It's Sega in name only.
I think the only thing any good to come from Sega America was Sega Racing Classic and we thank them for that hence Daytona USA 2011. Other than that not much to shout about. They took the Mickey with their claim to fame for Sega Rally Online Arcade when it was in fact dear old Sumo that did it! Yes Sega A had to be seen as doing something... Not surprised to be honest.
yep, for SROA, the press release didn't say 'who' was working on the title. The day I found out SumoDigital did SROA was the day i downloaded and played the game first time, you see the logo on the intro screens and wow!! ashame SumODigital didn't get more recognition for SROA in the publicity/marketing side.