Sega sells the rest of the palace grounds, leaving good business

Sega is leaving behind the temples in Japan. The company announced that it is sell its remaining palaces to a company called Genda, Inc. (also known as GiGO), and left the coin-op business where the company first made a name for itself.

Sega’s first arcade game was Periscope, launched in the late 1960s and the company has been a major player in the arcade industry ever since. Although video games around the world have been on a steady decline over the past 20 years, due to the popularity of console and PC games, they still hold a fairly important place in Japan’s gaming culture.

However, in 2020 with the COVID-19 pandemic, even Japan’s lake areas are starting to level off. At the end of 2020, Sega sold its 85% stake in the company’s supply chains, run by the Sega Entertainment division, to Genda. Now, as new variants of COVID-19 emerge and arcade business continues to struggleSega also sold the remaining shares to Genda, according to Eurogamer and Tojodojo.

Sega’s palaces will be renamed GiGO across Japan, according to a tweet from Genda CEO Takashi Kataoka.