This year alone we have seen several big name game companies layoff their employees and cancel projects in lieu of the economy. The next victim to join EA, THQ, and several others is now the house that Sonic built, which today announced that it expects to post an “extraordinary” loss of ¥7.1 billion ($85 million) for the financial year ending March 31, 2012.

Sega’s parent company Sega Sammy said, “Given this circumstance, the companies determined that in order to actualise earnings recovery of the Consumer Business in the following period and after and return to a growth path, it is essential to streamline organisations in the field of home video game software in the US and European markets while shifting to a structure that corresponds to change in environment, including strengthening development in the field of digital content.”

There is no word on what titles will be canceled, but Sega is relying on “strong IPs” such as Sonic the Hedgehog, Football Manager, Total War, and Aliens to support their goals.

Job losses are inevitable as Sega plans to “streamline organization in the US and Europe home video game software. This will create a smaller company positioned for sustained profitability.”

About The Author

Giancarlo Saldana is Blast's Gaming Editor. Follow him on Twitter @giansaldana to read his daily musings about the world of video games.

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