Sega Falls on Tough Times, Scraps Development of Some Games

Sonic the Hedgehog could use a big hug right about now, and so could everyone else at Sega. After holding a meeting with the company's Board of Directors, Sega this weekend decided it was time to restructure its operations in order to cope with a "challenging economic climate" and adapt to "significant changes in the home videogame software market environment in the U.S. and Europe."

If you're a fan of Sonic, you can breathe a sigh of relief knowing that Sega's most popular franchise is safe. Sega said it will also continue to focus on Football Manager, Total War, and Aliens, all of which "are expected to continue posting solid earnings." At the same time, Sega said it's cancelling the development of some games, though the company didn't specify which ones.

Image Source: Flickr (midiman)

In addition to scrapping several games, Sega's restructuring plans include streamlining its U.S. and European operations, ultimately creating a smaller company through layoffs. Once again, Sega was short on specifics, though the company did said it expects "a number of redundancies."