Collapse of Sega

Sega is heading into a downward spiral once again, from the collapse of dream cast and the arcade scene slowly depleting, Sega reports financial results for the nine months ending in December 2008. And they're not the best of reading, The company is losing money, and as a result, will be losing staff and arcades as well.

Across Sega Sammy Holdings as a whole - which includes Sammy's pachinko/pachislot machines, along with Sega's arcade machines and home video games - a downturn in revenue has led to the company revising its forecast for the financial year, with Sega now bracing for a USD$235,424,993 loss come March.

a Business can't survive with that kind of leakage, Now Sega plans to crack down on the big spending issues and developmental process of their games to make the companies revenues sore instead of deplete.

Plans as follows

Firstly, 110 of Sega's Japanese arcade centres (presumably those in the 'burbs, not downtown Shinjuku) are to be closed or sold off.
Next, Sega will look to cut loose 560 of its 3100 employees. At the moment, this is being done via a policy of voluntary redundancies, with the first of these "volunteers" to cease employment in March 2009.
Finally, across both Sega and Sammy there will be a 20% reduction in research & development, "by consolidating titles to be developed". That means we'll likely see some upcoming Sega games canned.
There once was a time it was probably good to be a Sega employee. Especially one in Japan. Now does not seem to be one of those times.