Sega continues to be a major publisher in the video game industry. But many may not be aware that Sega also has another successful business, which is its thriving pachinko business. In Japan, pachinko exists as a sort of loophole in the country's strict gambling laws. And up until now, Sega's video game and pachinko efforts have been housed within the same organization. That's apparently changing, however, as Sega's video games and Sammy's pachinko games will now be housed in different companies.

The new corporate structure for Sega Sammy will include three different companies. Sega Sammy Holdings will become the consolidated holding company for the now split video game and pachinko divisions. Sega Group Corporation will be responsible for the management and operations of all things Sega. Lastly, Sammy Corporation will be responsible for the development, manufacturing, and sales of pachinko and jankyu arcade machines.

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While Sega's game publishing and development aren't likely to be impacted, that doesn't mean the company isn't going through a major shift. Some may recall that Sega recently called for over 600 voluntary retirements, a workforce reduction of almost 7%. Sega also recently shut down its Akihabara arcade and sold off its Genda arcade rental business. The Sega that exists now is dramatically different than it was one year ago.

One specific topic worth considering looking forward to is the rumor that Sega could be acquired by Microsoft or another western business. Sega being restructured so that its pachinko business efforts are no longer included in the video game subsidiary of the company will likely only reignite that rumor. The new split would make it simpler for a company like Microsoft to acquire this new Sega gaming company without also getting involved with the Japanese pachinko industry.

For fans of Sega's games, as well as their publishing efforts for small and medium-sized game developers, there's no clear reason to worry. Sega describes the process as a "simple" step being done to adapt to the "external environment." The change, Sega says, will create a "more efficient structure" and will "accelerate global business." What that means in terms of consumer-facing changes remains to be seen, but Sega fans can likely expect business as usual for the foreseeable future.

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Source: Sega