Sega leaves Japanese Amusement Arcade Industry after 5 decades

After five decades in the Japanese amusement arcade industry, Sega decides to exit due to the pandemic's impact on their business.

The company's 3rd Building at Akihabara, Japan, Photo from Google Maps

Sega bids farewell to amusement arcade business

During the first year of the Coronavirus outbreak, Sega's arcade division was hit largely which then has led to the company selling 85 percent of its arcade and amusement center business to Genda Inc.

Sega's assets, such as amusement equipment and prizes, were included, and Genda Inc. purchased the remaining arcades from Sega earlier this week.

While Sega was not the only arcade operator to suffer a sharp decline, they are considered as one of the most popular. Sega's Akihabara Building 2 arcade was forced to close in September 2020 due to the end of the fixed-term building lease under which it operated and the uncertainty surrounding the future of such companies in the aftermath of the COVID-19 epidemic.

Sega Entertainment will be rebranded to Genda GiGO Entertainment and all Sega branding at these locations will be changed to GiGO once the remaining of Sega's arcade shares are completely offloaded to Genda.

Looking at the bright side, the company will continue to produce and sell arcade machines for the time being, despite the fact that the market for Japanese arcades has plummeted since its glory days in the 1980s.

Source: GameSpot