The corporation issued a notice to investors on Friday explaining that it expects to make just $34 million in net profit by the end of the financial year; a nosedive in performance compared to the $260 million it made the year prior.
The struggling publisher, which formed in the 1940s and shifted its business into video games by the late '80s, will also reposition its business to center it around "smartphone and PC online gaming."
Although drastic measures, Sega has been planning this shift in business since May 2014. To what extent this will further narrow its games console business is unclear. Sega's key releases of 2014 were Alien: Isolation, Rome 2 Total War, and Sonic Boom.
Unfortunately, this likely means more free-to-play style games on Steam, the App Store, and Google Play, rather than the stand alone single player Sega games many of us enjoyed in the past.
I expect we'll still see some big console games (Sonic, etc), but it doesn't look good for Sega's less well known IPs.