Sega hasn't had it easy.  Recent company losses have forced Sega Sammy to lay-off 400 employees in order to cut costs.

Despite their momentary comeback in 2006, Sega lost ¥15.77 billion for the nine months to December - that's $210 million.  As a result, the company has been forced to dump 110 amusement arcades and reduced pay and bonuses for management positions. 

Hajime Satomi, CEO and president of Sega Sammy, stated that they will also be soliciting voluntary retirement of its employees in order to better "cost flexibility through optimum employment."  He reflects on the company's performance, explaining their currently poor financial state:

"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."

Voluntary redundancy is being offered to Sega staff members, and after the unfortunate 400 have been let go, Sega Sammy will be left with little more than 3,000 employees.