All is not well in castle Sega. Today, announced via two reports, parent company Sega Sammy has revealed expectations for the business to loose a whopping 7.1 billion yen at their next fiscal report, throwing the company into turmoil.

To combat this projected loss, Sega Sammy also confirmed plans to restructure and refocus their Sega games division, an overhaul that will ‘cost’ the company 4.9 billion yen alone. Specifically, the company has confirmed cancellations of numerous unannounced titles, and though they’re yet to elaborate on how this ties into the restructure cost, we’re fairly confident that a significant portion of that 4.9 billion yen is, in fact, the existing spent budget of now cancelled games.

The restructure intends to shape their gaming division to put more emphasis on the Western market, avoiding titles and franchises that are too difficult to localise outside of Japan, and are unlikely to appeal to another other than a niche, Japanese audience. As an example, the company cited franchises such as Sonic the Hedgehog, Football Manager, Total War, and Alien as globally successful properties to remain a major focus for the game division.

Sega’s cancellation of titles is a curious point as though many may speculate, we may never truly know what these titles are, or how far they were in development. For example, rumours of Bayonetta 2 have been circulating for some time now, and though never formally confirmed, Sega’s reluctance to comment on the predicted sequel may imply cancellation.

For the time being, Sega’s next big games include Aliens: Colonial Marines and Anarchy Reigns, which will release later this year. Rocket Chainsaw will have a review of their most recent game, Total War: Shogun 2 – Fall of the Samurai very soon.