With the next-gen consoles slowly cornering the video game market over the past few years, arcade amusement centers in Japan have been going through some rough times keeping everything in the green.

The Sega Sammy Holdings merger was just one of the companies that were forced to cut their losses by laying off 400 employees as a response to their cost cutting initiative. The company has already closed 110 unprofitable arcade establishments, as well as reduced pay and bonuses for its managerial staff.

This leaves the company with staff levels of just 3,000 employees after the solicited voluntary retirement incentive pushed by Sega Sammy.

Here's the official statement released by Sega Sammy chairman and CEO Hajime Satomi:

Due to Sega failing to respond to changing business environment, the operating performance of its core businesses, including the amusement facilities business and domestic consumer business, has not been performing well.