Sega cuts back in Europe

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Sega of Japan, marketer of games software, is closing subsidiary Sega Europe's London headquarters and Sega sales operations in the Netherlands, Belgium and Austria, writing off $238 million in the process. The implications for advertising were not immediately clear; McCann-Erickson handles Sega's advertising across Europe. Analysts say the move indicates that Sega will concentrate less on the shrinking European video games market, where the rival 32-bit Sony PlayStation is outselling the Sega Saturn, and more on operations like Segaworld, the family entertainment center it plans to open in London in the summer.

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