Thirty-six were let go from Sega of America's San Francisco offices while Sega Europe's London staff was trimmed by thirty-seven--reductions of 12% and 10%, respectively.

"We've been going through the planning process the past 6 months, taking a look at the future of the market and where we think our investments need to be," said president Mike Hayes. "It's no surprise that the share of digital is growing as an overall part of the video game business, so we decided we have to invest more in that specific area."

"We're finding increasingly that ESD [electronic software distribution] is taking a bigger share of our overall revenues, so that's an important growth area for us. The whole PC field in general [is doing well for us]," Hayes told the site. Sega is also working on a Facebook title in addition to more conventional XBLA, PSN, iPhone and iPad releases.

"What we decided to do is to make San Francisco the kind of hub for our digital efforts," Hayes explained, "and therefore make London the hub for the traditional packaged goods part." He stresses that this does not indicate a preference for one release medium over the other in either territory and is simply an administrative reorganisation.