Following on the heels of its announcement of plans to join with Sammy Corporation as subsidiaries of a single holding company, Sega today announced that it will reintegrate seven of its independent development subsidiaries back into the company proper. The seven studios affected are Sega WOW, Sega-AM2, Hitmaker, Amusement Vision, Smilebit, Sonic Team, and Yu Suzuki's new DigitalRex studio. The audio-focused Wavemaster studio seems to be unaffected by the move.
Sega's future software development efforts remain a question mark, however -- the company seems to have far fewer titles announced than it has the resources to produce. Of the above-mentioned studios, Hitmaker, Sonic Team, and DigitalRex have no original console titles on Sega's Japanese release list, while Amusement Vision has only one, and Sega-AM2's one announced console project, Virtua Quest, is near completion. Whatever comes out in the wash of Sega's ongoing reorganization, we'll be sure to pass on all the details as they arise.
News source: 1UP