It’s been a rough year for Sega Sammy, and as a result of some “extraordinary losses” due to the impacts of coronavirus, it will sell the majority of its shares in Sega Entertainment to Japanese amusement rental firm, Genda – a company with a “strong desire” to expand the arcade sector in Japan.
Speaking to shareholders earlier today, Sega said it would transfer approximately 85.1% of its shares in Sega Entertainment while retaining just 14.9%. As highlighted by GameIndustry.biz, Sega Entertainment “creates and operates” the company’s arcade locations, while “Sega itself still manufactures and sells arcade machines”.
It’s been obvious for a while now that this part of the business hasn’t been going so well for Sega Sammy – especially when news surfaced earlier this year about Sega shutting down its famous Akihabara arcade in Japan. The extent of the damage is expected to be detailed in the company’s quarterly earnings and the deal will go through on 30th December.