Via ITMedia and SoraNews: Following the recent closure of the iconic SEGA Building 2 in Akihabara, SEGA Sammy has announced it will be exiting the game centre business with the sale of 85.1% of its arcade arm SEGA Entertaiment to GENDA — a company engaged in the business of renting arcade and amusement equipment.
GENDA will convert SEGA Entertainment into a subsidiary after 30th December 2021 and will continue to operate 193 arcades nationwide under the umbrella of SEGA Sammy. SEGA Sammy has officially stated that only the operating entity will change, and the look and branding of existing stores will not change.
The reason for SEGA’s exit is the decrease in profits due to COVID-19. According to SEGA Sammy, the COVID-19 lockdown led to the closure of many game centres, and massive losses were recorded. Although sales have recovered to about 80% of levels prior to the lockdowns, the company found the losses unsustainable, and began negotiations with GENDA in July 2020.