I guess people really have no need for it anymore.
When the COVID-19 pandemic first hit, it damaged the economy of several nations as well as companies, even the big ones. Because people stayed home, entertainment centers like Arcade are hit hard by it, forcing them to close, some for even a year or two straight. Sega is one of many companies severely affected by the pandemic, and their arcade division was forced to close.
The company has sold 85% of its arcade stakes to a company called “Genda, Inc” otherwise known as “GiGO. This move is a sign that Sega is leaving the coin-op and arcade business forever, thus ending its reign for over 50 years in the industry.
Here’s a short history. Sega’s first arcade game was called Periscope and was launched in the 1960s in Japan. In the recent years, arcades have been on a decline thanks to the prominence of home consoles and personal computers. Nevertheless, it still has a strong following in Japan and even here in the Philippines, where many locals still enjoy going to arcades and some of them even have full lines.
GiGo will rename all of Sega’s arcade to their own brand, according to a tweet from the company’s Chief Executive, Takashi Kataoka. Sega will still continue to manufacture arcade cabinets though.