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    SEGA is leaving the Japanese Arcade business

    SEGA's existing arcades will be rebranded as GiGO arcades.

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    Following the closure of several locations over the past two years, SEGA has announced that it is exiting the arcade business in Japan by selling its remaining locations to Genda, Inc. (aka GiGO).

    As spotted by Tojo Dojo, SEGA is selling its remaining 14.9% shares in arcades to Genda, Inc. This means Genda will soon be the full owner of the arcade business, with existing SEGA locations to be rebranded as GiGO Arcades.

    SEGA exiting the business is due to a variety of factors, the biggest of which is the ongoing COVID-19 pandemic. Since the pandemic started last year, SEGA arcades have struggled, leading to closures of several locations, as well as the sale of over 85% of SEGA’s business to Genda back in 2020.

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    While arcades aren’t that popular anymore in most countries (owing to PC, console, and mobile games), large arcades have managed to stay in business in Japan, even in the past decade. Given this, it’s sad to see SEGA leave the business given that the company is an icon for its arcades. Here’s hoping that the GiGO arcade won’t close down anytime soon so that overseas fans may still be able to visit them when pandemic restrictions are lifted.

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    Source: Tojo Dojo via Eurogamer

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    Nicolo Manaloto
    Nicolo Manaloto
    UnGeek's resident editor who is obsessed with anything and everything Death Stranding. He is also a big fan of the Yakuza series, and is a weaboo in denial.

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