SEGA has released a statement today, announcing a restructuring of its subsidiaries:
It is hereby notified that SEGA SAMMY HOLDINGS INC. (the “Company”) has determined, at its Board of Directors meeting held today, to implement organizational restructuring within the Group (business reorganization such as: divestiture which sets the wholly owned subsidiary as the company involved (incorporation-type demerger), merger (absorption-type merger), and contribution in kind) and to change some of the names of subsidiaries as described below. As the organizational restructuring is an organizational restructuring within the Group occurring at the Company’s wholly-owned subsidiaries, disclosure items and contents are partially omitted.
The restructuring will lead to the loss of 300 jobs in its global workforce. In order to get the company back on its feet, SEGA will divide the company into three divisions: SEGA Holdings (video games), SEGA Interactive (pachinko and pachislot machines), and SEGA Live Creation (amusement parks). SEGA Networks and SEGA Corporation, the divisions that were previously responsible for PC as well as console games and mobile titles, have merged under the SEGA Holdings banner.
As for SEGA’s financial report, which was also released today, SEGA anticipates a loss of $125 million due to the restructuring. The publisher also revealed that a 27% increase in game development costs and 53% increase in advertising did not help increase sales. SEGA does mention that Alien: Isolation performed the best during that nine month fiscal period, seeing about 1.76 million sales.
Perhaps the biggest disappointment for the company is that Sonic Boom for the Wii U and 3DS only managed to sell 490,000 units combined; the lowest in the franchises history. SEGA initially believed to sell about 300,000 units of its four latest Wii U games, but SEGA revised it down to 230,000, making it the weakest platform in terms of unit sales.