Sega arcade
Sega

SEGA sells off its arcade business due to COVID-19

RIP SEGA arcades as arcades owned by SEGA.

SEGA’s parent company announced it had sold 85.1% of SEGA Entertainment, its Japanese amusement business, to amusement machine company Genda. They attributed the sale to the COVID-19 pandemic killing its business and projected “extraordinary losses” from the transition.

Interestingly, SEGA arcade centers will retain their names after the handover according to a SEGA interview with Famitsu. SEGA also confirmed they would continue to develop arcade games.

Q: Will the amusement facilities still retain the SEGA name after the stocks are transferred to GENDA?

A: The existing names of each store will be carried over even after the transfer of stocks. Although the stores will be managed under a new administration, customers will still be able to continue patronage as usual.

Q: It is assumed that SEGA’s arcade game production team still exists, but will this sale have any effects on the arcade development?

A: It’s as you recognized; our group will still continue doing the amusement device development business. Moreover, our group is also planning to optimize development resources to fit the market environment of each enterprise. For example, by shifting some of the amusement device development staff to the Consumer business which is a growing field.

(via Eurogamer)

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