Today Sega presented it's upcoming flagship titles to the public in Japan. Executive Officer of SEGA Japan, Kawagoe Takayuki, said that "overall it [2008] was a difficult year [for Sega]" and that they were definitely affected by the global economic recession.

However he also mentioned that Sega were encouraged by the sales of PlayStation 3 exclusive, Yakuza 3, and PSP exclusive, Phantasy Star Portable. Both of which achieved half a million units in Japan alone.

Takayuki went on to say that "due to the success of these titles, Sega wish to bring excitement to gamers with more quality titles." He then went on to announce Bayonetta and End Of Eternity for PS3 and Xbox 360 and Puyo Puyo 7 for the DS (releasing July 30), Wii and PSP (releasing Winter 2009).

Source