Hard times have fallen on publisher Sega Sammy, who has announced the closing of a subsidiary office based in Korea, as part of a "global business optimization" in the wake of massive financial losses.

The "global business optimization" will also affect Sega Sammy in Japan, where plans for a $330m arcade in Yokohama have been canceled, after an initial $227m investment in the purchase of land. At fault is the coin-operated amusement side of the company's business, which is suffering in Japan at the hands of the home console market. At least Sega Sammy continues to hold its head up high, denying any potential for buy-out.

This article was originally published on Joystiq.