Just a few weeks back, we reported on SEGA closing up shop at it’s iconic Akihabara SEGA Arcade #2 (GIGO) and then a couple of weeks after that Karaoke Adores in Akihabara closed up shop, and today during a shareholder meeting, SEGA SAMMY made the bone-chilling announcement that due to the recent impacts caused by COVID-19, they will be selling their Game Center business as well as all of its assets to GENDA for an unreported amount of money. This is a staggering blow to the industry as SEGA SAMMY was the 3rd largest arcade operator throughout the country of Japan.
During the shareholder meeting, SEGA SAMMY stated that the closure of the Akihabara SEGA Arcade #2 was part of this impact that COVID-19 caused and where there has been an uptick in patronage to their game centers, the situation is still unpredictable and uncertain. They announced that GENDA will be purchasing 85.1% of the Game Center subsidiary from SEGA SAMMY while SEGA SAMMY retains 14.9% of the business. GENDA purchased a total of 17,882 shares from SEGA SAMMY, giving them complete operational control of the company. The contract for the purchase was signed today on November 4th but is not expected to go into effect until December 30th, 2020, as stated in the press announcement that GENDA posted on their homepage this morning.
It is worth to note that where SEGA closed the doors at it’s Akihabara #2 arcade, there has been ZERO mention or any notion regarding this purchase of assets to contribute to further closures. Neither company has made an announcement stating that they plan to close any further locations and any reports that they have should be taken with a grain of salt. Where of course due to the nature of COVID-19 and what it’s done to businesses worldwide, it certainly is a possibility, but nothing has been announced as of yet.