After closing down the famous Akihabara Building 2 arcade in Tokyo last August, SEGA is now selling 85.1% of its stocks and ceasing all Sega arcade operations. On Wednesday, Sega Entertainment announced that they are selling 85,1% of their stock to GENDA (Global Entertainment Network for Dreams and Aspirations). They operated 193 video game arcades across Japan, while GENDA is a Tokyo-based arcade amusement machine rental company.
The sale was an effect of months of an economic struggle due to coronavirus pandemic. Sega already had to close down one of their buildings, the famous Sega Akihabara Building 2 arcade in Tokyo, back on August 30, 2020. Furthermore, decreased customer traffic rates and temporary closures of objects resulted in an economic collapse for the entire arcade industry in Japan. It caused Sega Enterprise’s arcade earnings to go down about 20 percent compared to their pre-corona levels. The negotiations with Genda began in July, and the official shares transfer will happen on December 30.
Even though Sega ceases all arcade operations, according to what Sega Games Holdings told Famitsu, the existing Sega arcades will retain the Sega name. What’s more Sega will still produce and manufacture arcade game machines use in arcades owned by other arcades. Sadly, it’s possible that some individual locations may close down!
Hopefully next year will be better for Sega!
Source: GENDA, Jiji Press, IT Media