Tokyo - Struggling video game and pachinko machine company Sega Sammy Holdings announced this week that it will lay off 400 employees at its game software division, or about 5% of its workforce, after stating that it expects to report a $242 million loss for its fiscal year.

"Due to Sega failing to respond to changing business environment, the operating performance of its core businesses, including the amusement facilities business and domestic consumer business, has not been performing well," said Sega Sammy chairman and CEO Hajime Satomi.

The company has already shuttered 110 unprofitable amusement arcade locations.

Sega Sammy said it also intends to "substantially enhance price competitiveness of its North American business, specifically and supply products to meet market needs," adding that the layoffs are expected to reduce annual costs by an estimated $32.6 million.

Related Links:
http://snipurl.com/1za9r (PDF: Sega Sammy statement)

http://snipurl.com/1za9u (Reuters)

http://www.segasammy.co.jp/english/index.jsp