Sega canceling games, restructuring business

Sega is going through tough times. This morning, the Japanese game company announced it was halving its financial forecast for the fiscal year, canceling games, and restructuring due to the "rapid change" in the game market.

Part of the process is canceling upcoming titles. Sega did not specify which games have been axed, and as of press time, Sega had not responded to GameSpot's request for comment.

Sega made clear that forthcoming games from the Sonic the Hedgehog, Football Manager, Total War, and Aliens franchises have not been canceled.

As a result of the changes and market conditions, Sega is predicting an extraordinary loss of ¥7.1 billion ($86.4 million) for the year ending tomorrow, March 31, 2012, with ¥4.9 billion ($59.7 million) directly related to the restructuring.

Additionally, Sega said it plans to streamline its organization in the United States and Europe. The company said this move will better position the firm for "sustained profitability." Sega did not say if jobs were cut as a result. Further, Sega said it plans to increase its involvement in the digital market, but did not map out anything specific.

For its fiscal year, Sega now expects revenue to come in at ¥394 billion ($4.8 billion), down from the ¥440 billion ($5.4 billion) it expected previously. Additionally, profits are expected to dip nearly 50 percent, from an originally estimated ¥38 billion ($462.6 million) to ¥20 billion ($243.5 million).