Bad news for SEGA of America today as the company has announced that they will begin downsizing effective immediately and lasting until June. This will include the relocation of the game studio's offices from San Francisco to Southern California.

“This move was crucial to keep SEGA operations moving forward throughout North America and to provide our millions of fans a strong pipeline of content across gaming, TV, merchandising, and more,” said SOA president and COO, John Cheng. “We are confident that by relocating to Southern California we will be able to thrive, grow and become a stronger company because of it.”

Relocation packages are being offered to many employee while others will be laid-off entirely. The total number of employees affected will be finalized in the months to come.

SEGA had a light 2014, with the banner releases being the hugely disappointing Sonic Boom and the franchise-redeeming Alien: Isolation.

No reason was given for the downsizing and sudden move, but given that the company was previously based in San Francisco, the relocation is likely an effort to save money by heading to a cheaper location.

SEGA's release schedule will not be affected by the move.