SEGA's main Japanese branch has announced plans to make significant cut backs this year.The company stated plans to close 110 of its 450 arcades throughout Japan, and will cancel multiple titles that are currently in development. SEGA also has plans to cut their workforce by 18%. The company also has plans to develop more games in-house, rather than outsourcing.
Also, 20 percent of the research and development budget for arcade and consumer games will be cut.
Last month, SEGA's San Francisco branch reportedly laid of 30 employees.
Source: Wired
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