Sega announces restructuring of subsidiaries, projects $125M loss for fiscal 2015

Sega Sammy Holdings today announced a corporate restructuring that will lead to the loss of 300 jobs in Japan. The firm, created by the 2004 merger of gaming giant Sega and pachinko machine (a combination of pinball and a slot machine that’s popular for gambling in Japan) maker Sammy, also lowered its projected sales figures for the fiscal year.

From April 1, Sega Sammy Holdings will conduct its operations through three independent business groups: Sega Holdings (video games), Sega Interactive (pachinko and pachislot machines), and Sega Live Creation (amusement parks). Sega Corporation and Sega Networks, the entities that were previously responsible for PC/console games and mobile titles, respectively, have been consolidated into “Sega Games.” The gaming arm now falls under the newly-created Sega Holdings, as mentioned above.

For the fiscal year ending March 31, Sega Sammy Holdings anticipates an extraordinary loss of JPY 15 billion (US$125 million) due to the restructuring. Last October, the firm had projected a JPY 4 billion (US$33 million) profit.

Sega Sammy Holdings will also ask 300 employees to retire early in order to salvage an estimated JPY 2.8 billion (US$23 million) in labor costs. While the company didn’t specify what countries those workers will hail from, it did state that downsizing will affect unprofitable divisions such as toy sales and CGI film production.

Just last month, Sega of America announced that 120 jobs would be cut from its San Francisco office as the embattled gaming company cuts back on its arcade business and shifts toward PC and mobile.

Adding insult to injury for Sega is a recent indication that decades-old rival Nintendo is expected to return to profitability this year after facing woes of its own.

See: Gumi Asia is publishing Sega’s Chain Chronicle for English-speaking markets