The SEGA saga continues, and the news worsens. Over the last two months, we reported heavy losses by SEGA‘s gaming division leading to a company restructure, including the loss of SEGA America’s QA department, and now we can report that SEGA Europe may shut down entirely.

The rumour comes from Gamekyo, who report that over the next few months SEGA Europe will be shutting down all European divisions. As with SEGA America, the decision apparently comes from continued losses by the games division, and as consequences of the global company restructure. According to the rumour, SEGA as a whole will cease developing expensive, high production ‘AAA’ titles, the very last of which will be the next game by The Creative Assembly (Total War series) which will be revealed at E3 2012. SEGA’s shift will see them making more mobile, tablet and digital games, cutting the cost of big budget AAA titles out of their portfolio.

Is it all true? We can’t say for sure. If it is, we’re sure to hear of SEGA’s further restructuring very soon.