Sega Sammy, the holding company that owns Sega, has today revealed losses of ¥7.1 billion (£54.3m).
The company revealed to Edge that the "extraordinary" losses were "due to the challenging economic climate and significant changes in the home videogame software market environment in the US and Europe."
Sales were down for the year, and the company will be some way short of their predicted income of ¥40 billion, after Sega revealed their overall net income will be ¥20 billion (£153m).
To turn the tide, Sega said that it is "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."
This restructuring will likely mean the cancellation of less profitable games as well as job losses as Sega seeks to create "a smaller company positioned for sustained profitability."