SEGA Sammy has announced that it’s set to not only cancel future games but also streamline operations as a result of under performing sales.

Surely the blue hedgehog can fight back

The company has predicted a profit for the year of  ¥20 billion (£153m), half of the ¥40 billion it had forecast for the period.

So why the poor performance? SEGA say it’s “due to the challenging economic climate and significant changes in the home videogame software market environment in the US and Europe.”

SEGA have stated that in order to turn things around it’s “essential to streamline organisations in the field of home videogame software in the US and European markets while shifting to a structure that corresponds to [this] change in environment, including strengthening development in the field of digital content.”

SEGA have reported that there will be both job losses as well as a shift in focus meaning it will concentrate more on it’s stronger IP’s such as Sonic, Football Manager and Aliens. Lesser titles are set to be cancelled entirely.

Looking to the future, SEGA Sammy’s planning to record huge losses of ¥7.1 billion (£54.3m), of which ¥4.9 billion (£37.5m) will be associated to the restructure.