Sega Sammy is giving tons of studios in the US and Europe the axe as they make plans to restructure the company, in an attempt to adapt to the rapid changes in the industry as of late, for more sustained profits. As a result, lots of projects that were being worked on under the company are being cancelled (though games based on popular IPs such as Sonic the Hedgehog and the like will not be cancelled), and we should expect to see less Sega titles in the future than previously anticipated. Sega Sammy has estimated that it will record total losses of ¥7.1 billion ($86.4 million) as a result of this.

This news doesn’t rub me the right way. I don’t really care much for Sega’s most popular franchises in the first place, and hearing about this sudden shrinking of the company doesn’t give me much hope for seeing the conclusion to the Shenmue series anytime in the near eternity. Furthermore, lots of people will be out of jobs in an instant even though they didn’t do anything to deserve it. Sega might have their eyes set on making social networking games that are cheap to produce and distribute but rake in tons of money. Heck if I know… I just think this is rather rash decision making for a company of this scale.

Source: Gamasutra