February 12, 2009

Sega cutting back to save cash

The games maker Sega are feeling the global credit crisis so hard that they have had to revise almost everything that makes the company what it is, one of the most popular games companies in the world.

But in a market like this, the industry is struggling Sega had lost around £200 million last year, and as such they have had to close 110 of their famous arcades throughout Japan, lay of staff in Japan and in the US, and do something that could affect the company’s future, cancel the development of new games.

As a result, Sega will be shaving around twenty per cent off the budget from research and development for arcade and home games, as this is their core business this move is likely to cost them in years to come, although they will save money in the immediate future.

Source [Wired]