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.
Ads: Running a business? Create a company page to get more leads today.
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.