Sega announced on Wednesday to transfer shares of its historic arcade and amusement center business in Tokyo to the Japanese group Genda.
Seeing a remarkable decline of the use of arcade facilities due to COVID-19, the result recorded by Sega Sammy Holdings was that of significant financial loss in its first quarter fiscal year.
“Despite the recent recovery trend, the situation remains uncertain,” said Sega Sammy in a statement.
The board of directors of Sega Sammy, the parent company of Sega and other affiliated businesses, moved to withdraw from the domestic arcade operation and announced that it will transfer 85.1% shares of Sega Entertainment to the Japanese group. The company notes that it will report the sale as an extraordinary loss for this fiscal year ending March 2021.
The sale does not impact Sega’s video game division, but the company’s exit from its historic gaming den marks an end of an era.