Sega has revealed that it is to further focus on smartphone and online PC games in future as it aims to make its operations more profitable. Regardless of the critical and sales success it had with Alien: Isolation - a Pocket-lint Gadget Awards winner - the company will be cutting 300 jobs worldwide and undergoing a "structure reform" in the immediate future.
In a notice of the "implementation of structure reform", Sega explains that it has identified smartphone and PC online gaming as the biggest growth area for the company. And to enhance the newly formed digital games department to work within those fields, it will be making significant cuts in others.
Sega of America is likely to be worse hit, with the headquarters downsizing from its San Francisco base to another location in Southern California.
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Voluntary retirement will also be offered across the board, including in its coin-op arm. The product line-up will be narrowed down and it will withdraw some services entirely.
This all comes as the profit forecast for the end of the financial year in March is expected to be dramatically down year-on-year. Sega expects to post a net income of 17 billion yen (£95 million), down from 40.53 billion yen last year.