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STOP THE ELECTION: Sega Sammy selling its arcade division

Boaty McBoatface

Boaty McBoatface

Member
Due to Covid-19, Sega Sammy is selling off is Japan's arcade division:

Sega has announced a share transfer of its arcade business to Japanese company Genda, which will see Sega sell off its historic Japanese arcade business.

Sega Sammy, the parent company that owns Sega and other affiliated businesses, announced that it has agreed to sell 85.1% of its shares in Sega Entertainment, the group’s arcade and amusement center business in Japan. The deal does not impact its video game divisions at all.
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www.ign.com

Sega Drops Out of the Arcade Business (But It Will Still Make Arcade Games) - IGN

Sega has sold all of its remaining shares in its physical arcade businesses – but it will still make arcade games.
www.ign.com www.ign.com

Wonder how this effects Sega's arcade development.
 
M1chl

M1chl

Currently Gif and Meme Champion
Soon
1200px-Phil_Spencer_Xbox.jpg
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S

sn0man

Member
-Vyse- said:
SEGA Entertainment creates and operates the company's arcade locations, but SEGA itself still manufactures and sells arcade machines.
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Thank you. Something so ridiculous summed up so simply. All the reporting was just giving us a name SEGA and a sale but no details or context. Essentially nothing has changed except SEGA run Japanese arcade experiences.
 
The_Mike

The_Mike

I cry about SonyGaf from my chair in Redmond, WA
Microsoft playing the business game. Waiting until the right moment.

Can't wait till Wednesday. Christmas is early this year.
 
PhaseJump

PhaseJump

Banned
Soltype said:
This is just arcade locations right?
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Yeah. Sammy bought Sega for the arcades to begin with. They were a pachinko business. They ultimately restructured Sega multiple times. Hired outside management to push mobile gaming. Failed and lost money all over the place.

Gambling side of gaming is a volatile thing to be involved with in the first place, due to government shifts on policy or public opinion. It's a gold rush that can be regulated into oblivion quickly. The pandemic struck and completely destroyed tourism all over the world, giving governments more reason to hate public gatherings. SegaSammy is now cutting the arcade operations and asking people in the company to retire early.

IMO Sega is now just a brand being run by "Sammy" management that don't completely know what they're doing with any of it. Currently focused on a 60th anniversary campaign to hype things up for the fans. Many don't have the foresight to see that what was 'Sega' was being restructured, shrinking, losing money, now while being crushed by the bad circumstances of 2020. They keep making arcade games and software publishing in Asia. They want their western studios to thrive. I really think they should merge with Xbox. It's past fanboy joking bullshit for me. It actually makes sense.
 
Keihart

Keihart

Member
Why even live anymore...OTL....this is a kick in the nuts and i have just finished watching Hi Score Girl so the wound left from arcades disappearing almost it's really fresh.

 
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O

Ozzie666

Member
COVID-19 is another death blow for Arcades, even Japan can't survive it. This could be the end. I don't see a Street Fighter 2 on the horizon to save it this time.
 
Starfield

Starfield

Member
what does that have to do with the election? don't bring politics into the gaming channel. reported.
 
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Quasicat

Quasicat

Member
Team Andromeda said:
STOP THE THREAD !!! SEGA Is actually selling off its Arcade Centres, not its Arcade divisions. Not great news either way mind
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Thank you for the clarification. I was seriously curious how the games would be sold off. I was really hoping that whoever has the Ferrari license for games would buy Outrun for a modern release.
 
Evangelion Unit-01

Evangelion Unit-01

Master Chief
IbizaPocholo said:
www.nintendoenthusiast.com

Sega Sammy is asking 650 employees to voluntarily retire

In Japan, Sega Sammy has revealed significant losses for this financial year, and now it is asking 650 employees to voluntarily retire.
www.nintendoenthusiast.com www.nintendoenthusiast.com

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This is not too unusual. When companies are under financial pressure or undergoing a restructuring they’ll sometimes offer a voluntary retirement package. People will apply and if selected will typically receive a premium on what would be their usual severance. Good deal for those who are near retirement age. Usually helps free up seats for the reorganization and prevents them from having to let as many people go. The reason I say all of this is because I already saw an outlet portraying this as being characterized as “evil corporate”. They’re also cutting executive pay and eliminated their employee bonus for the year. Really trying to keep things afloat without a massive layoff.
 
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Team Andromeda

Team Andromeda

Member
Quasicat said:
Thank you for the clarification. I was seriously curious how the games would be sold off. I was really hoping that whoever has the Ferrari license for games would buy Outrun for a modern release.
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It's still not great mind. To me, SEGA is the Arcdads and an Arcade company 1st (it's why I fell in love with them). Still, those AM Teams are full of talent it is nice to have them again working on more home console games.

No Doubt MS will buy SEGA next Wednesday too LOL
 
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