Issue Date: Vol. 52, No. 4, April 2012, Posted On: 4/4/2012
Sega Says Home Video Loses $86M, Plans U.S. And European Cuts
amusement business, video game, arcade video game, home video game, Sega Corp., Sega Sammy, Hajime Satomi, Sega loss, Sega video game
TOKYO -- Sega Sammy chairman and chief executive Hajime Satomi said on March 30 that Sega Corp.'s consumer game division will be downsized and restructured in the U.S. and Europe, triggering an unknown number of layoffs. The move is in response to an $86.4 million loss for the financial year, ended March 31.
Satomi blamed the company's setbacks on a "challenging economic climate and significant changes in the home videogame software market environment."
Consumer videogame sales have declined 20% to 30% over the past year as the global recession finally took its toll on a market the previously appeared impervious.