IndustryGamers reports Sega has reorganized its western operations, and has "made the reluctant decision to reduce headcount by 36 employees in the San Francisco offices and 37 in London." Word is the European offices will continue to focus on "traditional goods" game development, while Sega's North American offices will refocus on digital distribution. "We've been going through the planning process the past 6 months, taking a look at the future of the market and where we think our investments need to be. It's no surprise that the share of digital is growing as an overall part of the video game business, so we decided we have to invest more in that specific area," says Sega West President Mike Hayes.