Hard times in the video game industry are catching up with Sega.
The publisher has slashed its financial forecast for the current fiscal year, announced plans to cut its staff in the U.S. and Europe and canceled an unknown number of games.
Sega said it expects to report a 7.1 billion yen (approximately $85 million) loss for the fiscal year, which ends on March 31. Calling the current economic climate "challenging" and noting its expected loss was "extraordinary," the company said it plans to move more into the digital content development space.
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