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Sega is set to cut 300 jobs as it aims to focus on its digital games business and move away from packaged retail.
The firm said it would offer voluntary retirement to employees in affected areas in February, as well as moving staff to its digital businesses.
The move will see a focus away from console and onto growth areas such as mobile and PC online gaming.
Sega of America’s San Francisco office will also be closed and moved to Southern California in the summer.
"Voluntary retirement will be solicited in the aforementioned businesses to be withdrawn or consolidated and downsized, while at the same time personnel will be repositioned in Digital Games and growth areas of Group mainly as development personnel, in order to establish a structure which can constantly generate profits. The purpose of these measures is to improve the business efficiency of the Group,” read a statement from Sega.
The news comes despite the recent success of Alien: Isolation, which was received positively by numerous critics and has also sold more than one million copies.
