Sega sells its arcade business due to the COVID-19 pandemic

The arcade industry has unsurprisingly taken a steep hit during the COVID-19 pandemic, and that’s leading Sega to bow out. Eurogamer reports that Sega Sammy Holdings has sold 85.1 percent of its Japanese arcade business, Sega Entertaiment, to the amusement machine company Genda. Sega isn’t shy about the reasoning. Its amusement unit has been “greatly affected” by the coronavirus, and it wants a company that can change with the times and reduce its fixed costs.

The company still expected to record “extraordinary losses” as part of the transfer. While there had been some recovery after the initial blow from the pandemic, the situation was still uncertain enough to prompt the selloff.