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New Sega president Hisao Oguchi is set to restructure the company's nine game development subsidiaries, with four of the nine studios being consolidated into two new companies.

This reshuffle is designed to cut costs and manage Sega's development assets more effectively, and full details will be revealed to shareholders later this month, with the changes taking effect from October.

Sega has also named a new president for its famous AM2 studio, the development house responsible for games such as Virtua Fighter and Shenmue. Hiroshi Kataoka has been the head of AM2's R&D division since last year, and worked in the past on games ranging from Space Harrier to Virtua Fighter 4 Evolution.

If Kataoka-san is taking over at AM2, what's happening to previous boss Yu Suzuki, then? Not to worry, Suzuki fans - the legendary developer has been promoted, and will be taking over the organisation of the two new in-house development studios at Sega.

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Source: GameIndustry