Sega Sammy to lay-off 400 as company sinks into red

[vbt]

Sega Sammy is laying off 400 employees as part of cost cutting measures following further company losses.


The company has already axed 110 unprofitable amusement arcades and reduced pay and bonuses for managerial staff. The latest move, says the company, is to offer voluntary redundancy to approximately 400, bringing staff levels to just above 3,000 employees.

Source : http://www.gamesindustry.biz

 

[mtxblau]

Interesting... did Sega or Sammy acquire any other businesses that they can attribute to the (major) decline in profits? That's a pretty significant drop over a year.


Could Sammy as an entity be looking to spin off Sega?

 

[mtxblau]

It turns out the Nintendo Wii is responsible; Namco is being financial hurt as well.


http://www.reuters.com/article/idUST21027320080207

 

[vbt]

It turns out the Nintendo Wii is responsible; Namco is being financial hurt as well.


http://www.reuters.com/article/idUST21027320080207

I'm not sure it's the real reason. Wii can't beat an arcade game. Maybe there is just less big title in the arcades, and less new ideas.

 

[Kuta]

I thought it had already been determined that modern gaming consoles were to blame for failing arcades. No arcade can compete with what they can do these days.