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Sega's Restructuring Plans Resurface

Sega reiterates its corporate restructuring plans, as the company continues to face financial woes.

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Sega Enterprises officially confirmed its bold restructuring plans that the company had originally announced back in November 1999. As part of the move the company will separate its research and software development group into nine independent units in July. According to Sega Enterprises, this restructuring plan is aimed at providing hands-on micro-management solutions and at easing development of Internet related software. Accordingly, Sega also plans to split its amusement division into five units by October 2000, as the company pursues a similar strategy in its arcade business.

Despite the relative success of the Dreamcast console in Western territories, the company will post significant net losses for the third consecutive year, because of fewer-than-expected sales in Japan. According to the Japanese Kyodo news source, Sega is expected to report a net loss of approximately 45 billion-yen for 1999 - 2000, an increase from its 44.8 billion-yen loss for 1998-1999.

Sega Enterprises shares ended the day Tuesday down 4.79 percent at 1,590 yen, down 41 percent since the original November announce date.

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