Sega To Lose Gobs Of Yen, 5% Of Staff; Wii Partly To Blame

Game maker Sega's holding company, Sega Sammy Holdings, announced that the group's pachinko and arcade business were suffering, warning of a 26 billion yen (almost $US 244 million) loss for the year. That near quarter billion dollar loss, Reuters reports, is a result of tighter industry restrictions on the pachinko business in Japan and the Wii's impact on arcades overseas.

The company also said it's planning to lay off 400 employees at Sega's games division. The arcade division saw a profit of 132 million yen the year before, but plans to post a loss of 11.4 billion yen in the coming year. In times like these, when many people are about to find themselves without a job, we can always place blame on Shadow the Hedgehog. He must be responsible for at least some of this.

Sega Sammy sees loss in 2007/08, to cut 400 jobs [Reuters]


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