Sega Studios Australia has confirmed the loss of 37 jobs at its Brisbane studio.
"The rise of digital gaming provides an opportunity to align the studio with a rapidly growing market at a time when the games industry is undergoing a significant transition," said Sega Australia.
"As part of this focus on digital avenues, there is a requirement to re-structure the studio resources accordingly and regrettably, we are announcing the loss of 37 staff."
The studios most recent project was London 2012: The Official Video Game of the Olympic Games, but was previously The Creative Assembly Australia and worked on Rome: Total War, Medieval II: Total War and Stormrise.
"The decision to downsize was not taken lightly but this strategic re-structure will ensure we have a more effective and agile team that will enable us to quickly adapt to consumer needs and deliver strong content across multiple digital platforms," continued the statement.
"We can confirm that SSA has signed a multi-product deal focusing across the digital marketplace. We have commenced development on these titles and will announce more details in the near future."
Last week SEGA Sammy released its nine month financial report, which showed a 6.6 per cent year on year decrease in profits.