On Friday, Sega Enterprises said that it may take steps to reorganize three of its affiliates in the US -Sega of America, SegaSoft Networks, and Sega Entertainment - to rebuild both its operations and reputation here in the States

　　The company announced that it expects to post a parent net loss of 39 billion yen (US$302 million) for the fiscal year ending March 31. This compares with a forecast made previously of a 15 billion yen profit.

　　The biggest news, however, is that Sega's greatest losses came from its American operations - a loss of about 47 billion yen ($363.7 million), 40 billion ($309.6 million) of which is solely from Sega of America.

　　A report from Japan's Nihon Keizai Shinbun paints an ominous picture for the future of the Saturn, saying that Sega will stop selling the Saturn in the US by the end of March. The report is unclear as to whether game titles scheduled for release after March will still make an appearance.

　　As a result of the rather dismal reports out of Japan, Moody's Investors Service placed Sega Enterprises' rating under review for a possible downgrade, stating that the firm is concerned about Sega's inability to maintain its competitive position overseas.

　　Sega of America and its PR firm were both unavailable for comment at press time.