Sega announce they are doing worse than ever thought possible, stuff could get cancelled

It seems things are not going good for Sega businesswise (PDF link here), with the company announcing they are expecting to record “extraordinary loss” totaling around 7.1 billion yen in the coming days.

They cite reasons for the loss to be “the severe economic environment in the U.S. and Europe and rapid change in market environment of home video game software.”

Because of the severity of the loss, Sega say there will be a need to streamline organizations and cancel of development of some games going forward.

Reporting on the loss, Sega comment “We conducted detailed reviews of earnings projections for titles targeted toward the U.S. and European markets and decided to narrow down sales titles from the following period and after to strong IPs, such as “Sonic the Hedgehog,”, “Football Manager”, “Total War” and “Aliens” which are expected to continue posting solid earnings. In accordance with this, we are canceling the development of some game software titles.

They did not give details on the cancellation – although odds are most of them will be titles still in the planning stage, that are not even revealed to the public as of yet – so nothing huge should go MIA.

In other words, Shenmue 3 will now never come out.

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