Sega Sammy Holdings Inc. has announced that it will begin streamlining its American and European operations after posting an 7.1 billion Yen ($86 million dollar) extraordinary loss for the 2011 year. The move is expected to create a "smaller company positioned for sustained profitability" with the company planning a shift to a new "digital content" strategy. It'll cancel work on new, forthcoming titles and just concentrate on key earners like the Sonic, Football Manager and Total War franchises. There's no official word on if it'll involve job losses, but the company is setting aside 4.9 billion yen ($59.7 million) of that loss figure in order to cover the costs of the corporate reorganization. In the meantime, we're off to pour one out for one of our childhood staples.