Sega is to cancel games and streamline its operations after parent company Sega Sammy warned investors that earnings and profits for the year ending March 31 will be hit by its underperforming games business.
The company said (via Edge) that its consumer business will post an operating loss "due to the challenging economic climate and significant changes in the home videogame software market environment in the US and Europe."
In a bid to turn the situation around, Sega Sammy said it's "essential to streamline organisations in the field of home videogame software in the US and European markets while shifting to a structure that corresponds to [this] change in environment, including strengthening development in the field of digital content."
Sega also plans to focus on reliable, long-running properties such as Sonic, Football Manager, Total War and Aliens. A number of unnamed games will be cancelled and there will be job losses, creating "a smaller company positioned for sustained profitability."