<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0306</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2014-10-02</periodOfReport>

    <issuer>
        <issuerCik>0000790715</issuerCik>
        <issuerName>SIGMA DESIGNS INC</issuerName>
        <issuerTradingSymbol>SIGM</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001232607</rptOwnerCik>
            <rptOwnerName>BONNEY MARK J</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O SIGMA DESIGNS, INC.</rptOwnerStreet1>
            <rptOwnerStreet2>1778 MCCARTHY BLVD.</rptOwnerStreet2>
            <rptOwnerCity>MILPITAS</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>95035</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2014-10-02</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>S</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>22094</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>4.08</value>
                    <footnoteId id="F1"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>25089</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <footnotes>
        <footnote id="F1">The price represents the weighted average sales price for multiple transactions reported on this line.  The price of the transactions reported on this line range between $4.07 to $4.10 per share.  Upon request by Commission staff, the issuer or a security holder of the issuer, the reporting person will undertake to provide full information regarding the number of shares sold at each separate price within the range.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Elias Nader, as attorney-in-fact</signatureName>
        <signatureDate>2014-10-06</signatureDate>
    </ownerSignature>
</ownershipDocument>
