Affected by Covid-19, Sega Sells Arcade Business in Japan

Jakarta, CNN Indonesia –

Sega decided to sell his arcade game business due to the pandemic Covid-19. Sega parent company Sammy Holdings said it had sold most (85.1 percent) of Sega Entertainment to arcade company Genda in Japan.

Sega stated that his arcade business had dropped dramatically due to the Covid-19 pandemic. On the other hand, Sega admits the sale of the arcade business is a significant loss.

As the Entertainment Center Operations area in the Entertainment Content Business was heavily affected by Covid-19, facility utilization has dropped dramatically, and significant losses were recorded in the first quarter of the fiscal year ending March 2021, “said Sega.

Sega stated that although the trend of the Covid-19 recovery is promising, the entertainment business situation is still unpredictable. Therefore, Sega considered various options for restoring business.

Sega undertakes business changes aimed at increasing profitability and restoring early sales of the Entertainment Center Operations area.

“In this process, we have discussed the transfer of shares of Sega Entertainment to Genda, a company that has a strong desire to develop its Entertainment Center Operations business and has decided to complete the share transfer agreement at the Board of Directors meeting,” said Sega.

Reporting from EurogamerThis arcade sale came after Sega celebrated its 60th anniversary as one of Japan’s most famous gaming brands.

Reporting from Hypebeast, Under the umbrella of SEGA Entertainment, Sega Sammy Holdings covers more than 193 video arcade games in Japan and has suffered losses of 20 percent during the Covid-19 pandemic.

Scheduled to take place at the end of December, the agreement states that Genda will retain all of the Sega brands. However, being under new management, Genda will make the final decisions on 193 arcade locations in Japan.

(jnp / DAL)

[Gambas:Video CNN]

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