Sega will sacrifice operations in Europe and Australia to laser-focus on four key brands: Aliens, Sonic, Total War, Football Manager.
Sports Interactive boss Miles Jacobson has said on Twitter that rumours Sega Europe is to close are "false".
Sega will cut jobs and cancel titles as it attempts to "streamline" the home video games business in Europe and the US.
Parent company Sega Sammy released a statement announcing the "structural reform" today. It comes as Sega braces investors for an "extraordinary loss" for the full financial year ending 31st March 2012.
"The Consumer Business centred on Sega Corporation is expected to post operating loss in the year ending March 2012, due to the challenging economic climate and significant changes in the home video game software market environment in the US and Europe.
Tablet technology in two years will be as powerful as PC tech was last year, Football Manager boss Miles Jacobson believes.
In an effort to prevent rampant piracy, Sega and Sports Interactive required Steam authentication to play Football Manager 2012.
Batman: Arkham City has glided to the top spot in this week's UK all-formats chart.
This week two very different pencil-drawn heroes of the comic book world each star in their own video games.
Pre-purchasing Football Manager 2012 from Steam gets you a handful of exclusive in-game Team Fortress 2 extras, Valve has announced.
Football Manager 2011 was the most pirated PC game in the series, Sports Interactive has told Eurogamer.
The Football Manager 2012 PC and Mac demo is available to download now from Steam, Sega has announced.
The Football Manager 2012 minimum system requirements for PC and Mac have been confirmed.
Piracy is "ruining" PC games and "forcing" them online, Michael Pacther has told Eurogamer.
Football Manager 2012 fans have reacted angrily to the news that the PC game requires Steam to play.
Football Manager 2012 will be released for PC and Mac on 21st October 2011, Sega and Sports Interactive have announced.
A demo, which allows progress to be carried into the full game, will be released at an unspecified point in the run up to launch.
Sports Interactive hasn't got a version of Football Manager in development - or in the pipeline - for PlayStation Vita, Eurogamer can reveal.
Football Manager 2012 has been announced and will be released "before Christmas".
Sega and developer Sports Interactive highlighted the key improvements.
Loyalty bonuses have been added to the transfer and contracts part of the game. The amateur and youth contracts have been smartened up, and you can lock variables in negotiations where you aren't prepared to budge.