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Breaking news! Sega Sammy withdraws from the arcade market

Japan’s Sega Sammy Holdings has announced it will sell 85.1% of its subsidiary Sega Entertainment's shares to Genda Inc. As the amusement centre operations area in entertainment contents business is strongly affected by Covid-19, its stores have been closed for a long time, utilization of facilities has declined remarkably, and a significant loss was recorded at the first quarter of the fiscal year ending March 2021. Despite its amusement centre operations had shown signs of recovery recently, uncertainty remains over its future and sales have been struggling for some time at the entertainment company. The group established a structural reform committee to adapt to the new business environment and reduce costs. After considering various options, the transference of assets to GENDA was decided. Sega Entertainment is currently the third largest video game playground equipment operator in Japan. This transaction means that Sega Entertainment will leave the Sega Group, and Sega will withdraw from the arcade operation business. As for Genda Inc., a Japanese company specializing in the rental of entertainment games, it hopes to enter the arcade operation field and expand the arcade business. (2020/11/18)

 
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