Sega has announced that it will reduce the number of its Japanese development studios from nine to seven, effective October 1st. In a first step, the nine current studios Sega AM2, Sonic Team, Overworks, United Game Artists, Smilebit, WOW Entertainment, Sega Rosso, Amusement Vision and Hitmaker will be re-organized into five new studios. In a second phase, two new companies will be founded. While the company earlier spoke of a reduction of its workforce by 10 to 20%, it made clear today that as a general principle none of the 1000 staffers employed by its nine sister companies will be laid off in the process.

• Bloomberg Japan