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Sega Sammy sells 85% of its arcade and physical space division following coronavirus losses

The move does not affect Sega’s arcade and video games division.

Sega Sammy sells 85% of its arcade and physical space division following coronavirus losses

Sega Sammy Holdings, the parent company of Sega, has just announced the transfer of the 85.1% of Sega Entertainment shares to GENDA, a Japanese conglomerate of entertainment venues. Before anyone freaks out, the Sega Entertainment division encompasses only the management of physical premises and entertainment centers, that is, business centers such as arcade rooms, restaurants, bowling alleys … does not affect video game and arcade machine divisions from Sega.

Sega Sammy will retain control over 14.9% of the sharesIn an official statement, Sega Sammy explains the motives behind this movement which, as you can imagine, is caused by the coronavirus and its economic effects. With the confinement and social distancing measures, Sega’s physical premises division had recorded significant losses this year, something that we could see clearly in the fiscal report of its first quarter. And it is the main reason why the company carries out this restructuring.

Sega Sammy sells 85% of its arcade and physical space division following coronavirus losses

“Since operations in the area of ​​entertainment centers have been heavily affected by COVID-19, the use of the facilities has declined considerably, and there was a significant loss in the first quarter of the fiscal year ending in March 2021, “the company explains in its statement.” Furthermore, despite the recent upward trend, the situation remains uncertain“.

We will continue working on reforms to transform our business and organizational structure Sega SammyWith the move, Sega Sammy hopes to close the fiscal year with losses of 20 billion yen after the structural reform. “We are going to continue working on structural reforms to transform our business and organizational structure in order to adapt to the situation, and to quickly recover profits.” After the sale, which will go into effect in December 2020, Sega Sammy will retain control over 14.9% of Sega Entertainment’s shares, although this division will no longer be part of its corporate structure.

As we mentioned at the beginning, the movement will not affect the video game division, which also includes Sega’s arcade machine business, as well as the rest of Sega sections. A division that will surely publish great results for the coming quarters, pending the releases of Yakuza: Like a Dragon and Football Manager 2021.

More about: SEGA, Fiscal Results and Recreational Rooms.