Although the recession was slow to hit the games industry, causing some to claim that gaming is recession proof, it’s hitting hard now. Sega has just announced layoffs of 30 of its Sega of America employees. The San Francisco-based branch of Sega confirmed the news saying, “At this time of economic recession, harsh retail landscape, and the reality of business challenges to profitability, we must take steps to reduce our cost structure and ensure long-term success.”

This announcement follows various other layoffs affecting developers, publishers, and critics alike. It’s been a tough few weeks to be in the games industry in San Francisco. It’s easy to wonder if the constant critical panning of Sega’s spiky blue mascot’s games (and the corresponding quality issues) might be related to Sega’s woes at large, although it’s worth noting that speculation along those lines has never panned out.