Sega sold its arcade business.
In a statement, Sega Sammy Holdings Inc announced that it sold the vast majority (81.5%) of Sega Entertainment, its Japanese arcade business, to Genda. The main reason is the impact of COVID-19, which completely devastated the arcade business.
The company reports significant losses in revenue this fiscal year and that despite a recent improvement, the future remains uncertain and had to consider several options to improve profit and recover.
“In the process, we discussed transferring the SE’s shares to GENDA, a company with a strong desire to expand its Entertainment Center Operation business and decided to complete the transfer of shares at a meeting of directors.”
The Siliconera further advances that the Sega Arcade centers will remain with that name, even after the transition to Genda.
In an interview with Famitsu, Sega confirms that it will continue to develop arcade games, but will no longer be responsible for running the business.