“This move was crucial to keep SEGA operations moving forward throughout North America and to provide our millions of fans a strong pipeline of content across gaming, TV, merchandising, and more,” said Cheng. “We are confident that by relocating to Southern California we will be able to thrive, grow and become a stronger company because of it,” said SOA president and COO John Cheng.

Relocation packages are being offered to a number of employees, but there will be positions reduced from the company to streamline operations. The total number of employees affected by this move will be realized after the complete transition is finalized in early summer.

Cheng added, “We are sad to say goodbye to some of the best people in the business and are indebted to them for their hard work and dedication through the years.”

SEGA’s game release schedule will not be affected by the move. The Sonic Boom television series, currently airing on Cartoon Network in the U.S., will also continue its run through 2015.