Other Sega Selling Its Arcade Business Due To Heavy Losses Caused By Covid-19

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Read from Dualshockers:

On November 4, Sega Sammy Holdings announced that the Sega Group subsidiary company, Sega Entertainment, will sell 85.1% of its shares to Genda. With this, Sega Entertainment will not be owned by Sega Sammy Holdings anymore. Sega will sell pretty much all of its Game Centers, Amusement Centers, around 200 all over Japan, and will leave the arcades management business 0n December 30, 2020. This is mainly due to the Coronavirus pandemic.

Sega Sammy Holdings did not make public how much the shares were sold for.

Sega Entertainment is the Sega Group subsidiary managing its Amusement facilities, as in game centers, arcades, but also cafés, etc. It’s the third largest Amusement Centers manager in Japan. Famitsu explained how a few years ago, Sega Entertainment started selling taiyaki in cafés near its game centers. Expanding its business possibilities. However, with the Covid-19 pandemic, Sega Entertainment reported heavy losses.

When the 2020 fiscal year ended in March 2020, Sega Entertainment reported 900 million Yen in losses. Compared to a 600 million Yen gain the previous year. Due to the temporary shutdown of its facilities with the Coronavirus state of emergency, and the sanitary regulations with less people going out. Sega Sammy Holdings considered various options, and ultimately decided on selling the shares of Sega Entertainment to Genda, which has expressed desire to expand its Amusement facility management business.
 
This is sad news for Arcade fans.

Hopefully, the Arcade machines will be bought by Arcade fans, or given to fans instead of being thrown away.
 
Huh Covid not surprised by loss of the companies but i feel sad when it comes to game companies like in covid they sales were increased due to more gaming they when loss :persevere:
 
Read more on it, translated by dualshockers:

https://twitter.com/x/status/1324239554195283968

Famitsu: “Following the shares transfer to Genda, will the name Sega remain on Amusement facilities?”

Sega Sammy Holdings: “The stores’ names will be inherited with the shares transfer. The stores will be operated by a new management, but we ask our customers to keep supporting them.”

Famitsu: “We already know Sega will keep making arcade games and amusement machines, but how will this sale affect their development?”

Sega Sammy Holdings: “As you already know, Sega Group will keep developing Amusement machines. Sega Group will now shift part of its Amusement machines developing personnel to console games development, which is a growing market. We will continue to optimize the resources used on each sector according to the markets’ changes.”
 
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