Sega Sammy Holdings Inc announced that it will pull out of game arcade operations in Japan by the end of 2020.
The Covid-19 pandemic has hit hard on the arcade industry. The sale comes as the third-largest arcade facility operator in Japan has been struggling due to closures caused by the pandemic.
Following the closure of its of Akihabara giant SEGA arcade, the company will sell 85.1% stake in Sega Entertainment Co., a subsidiary that operates arcade facilities.
A game rental firm, Genda Inc., will take over the company on 31 Dec 2020 for an undisclosed amount and take over 200 arcades across the country.