Sega of Japan have stated that they wish to report profits by March 2002, and have announced a number of measures which they feel will make this possible.

There will be a cut in the worforce at the Tokyo headquarters, to around 700 from a high earlier this year of nearly 1100. It is reported that there have already been a number of people leave though, so the figure at the moment is already nearer to 900 staff.

They also plan to sell up to half of their affiliated groups, who are either not directly related to Sega's main strategy, or who are loosing larger amounts of money. This is hoped to generate some cash to help boost the flagging funds, and to help the drive towards profit.

Sega say that they are also to focus on the Arcade business, where they wish to increase the number of arcade centres that they run. This is expected to happen worldwide, and not just in Japan.

On a brighter note for gamers, Tetsu Kayama, the co-CEO of Sega, confirmed that Sega are working on games for the Nintendo GameCube, and although no firm details of specific games will be available until E3 next month, it is thought that both the Sonic Team and Amusement Vision are working on titles, which could point to games such as Sonic, NiGHTS, Daytona and Virtua Fighter all being GameCube bound.

We'll bring you further information about the business strategy, and GameCube games when they are known, which is likely to be at the E3 Expo in Los Angeles, which takes place from May 17th.