With the onset of the COVID-19 pandemic in 2020, outside entertainment venues such as arcades were set to take a large hit in revenue, with Sega being a major stakeholder in the business. That is no longer true, as after selling off its Japan-based arcade division in late 2020, it is now selling its western division arcade business.

The western division, known as Sega Amusements International, has been purchased in what is deemed a management buyout by the management team lead by Paul Williams, who has been with Sega for over 20 years. The buyout was announced on the Sega Arcade website on March 25, 2021.

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While the sale of its Japan-based arcade division in late 2020 to Genda meant that over 200 arcades across Japan would change ownership hands, this is not the same concept as the sale of Sega Amusements International. Sega Amusements International has been in the business of providing independent arcades with machines and parts to assist with their business, rather than controlling everything from the building up.

However, just like the sale to Genda where all the buildings and contents inside would retain the Sega branding, the same will be with Sega Amusements International. All arcade cabinets will still retain the Sega name and logo, providing the consumer with the charm that has existed for decades. Whereas Genda is operating solely in Japan, Sega Amusements International sells to arcades located in North America and Europe.

With Sega struggling and eventually selling off its arcade business in Japan, it only made sense that this would eventually have global consequences for the company. With the sales, the company declared that it was going to have a focus on the in-home gaming market, but even with that focus, release dates have consistently been pushed back. The sale of both arcade divisions seemed only inevitable.

Some may look at the news as dour, but it appears that the new owners have an incredibly positive look at the future for Sega Amusements International. Other executives have voiced their approval of Paul Williams, and believe that he has the ability to lead the team into a new era of success. There appears to be hope where there once was only doubt, with the advent of people going out in droves once herd immunity is acquired. With vaccines now being distributed worldwide, the outlook doesn't look as poorly as it once did for the arcade business, but it isn't out of the woods yet.

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Source: Sega Arcade