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The story went viral on the web this morning, and I’ve come across a number of comments on this that are inaccurate or spreading the myth that arcades are done in Japan and that Sega has done with arcades all over the world. Let’s get the facts straight! To give some background information, GENDA is a Japanese company that operates many arcade equipment in the US. Kiddleton is a Chuck E. Cheeses-like division situated in Texas. The latest news this morning, which isn’t properly reported across all sources is that GENDA is buying all SEGA Entertainment Co., Ltd.’s shares. SEGA Entertainment Co., Ltd. What it means is that locations are changing ownership. It does not mean that the locations will be shutting down (see the statement of the company below). They’ll probably be unable to carry the Sega name to whatever GENDA decides to do, this is a tragic thing for anyone wanting to go to the «real Sega arcade.» Yes, it is possible that some of them will shut down in the event that GENDA decides to shut down poor facilities but will all of them? UPDATE: Famitsu weighs in, detailing that a lot of the funds Sega has devoted to the operation will be shifted towards their console game development business (not creating a brand new console, just shifting money and employees into the home department for game arcade development). IT further states that the locations will maintain their Sega branding, meaning that you’ll still be able go to a «Sega arcade» when the day arrives when tourists are able to return to Japan in the future. Here’s a revamped Google Translation of their explanation of what they’re doing in the last few days. Through the creation of an entertainment network that is global our goal is to make people’s lives more enjoyable. Our goal is to boost the «total amount of entertainment» in the world. At present, we are building and expanding the amusement machine rental business, our online crane game business, our sales promotions company, China business, and US business. SEGA Entertainment was founded with the aim of bringing smiles to people and create positive emotions through providing «fun places». It operates 199 entertainment facilities (including 193 amusement centers) throughout the nation. As an amusement facility operating company, we’re pleased to hold the position of the third largest company in Japan. In collaboration with SEGA Entertainment, we will rejuvenate the industry, both for manufacturers and operators. For everyone in the industry, such as the end user there is a feeling that «the fun will increase». We aim to create such an amusement business. I’ll need to conduct some research to find out whether this is also encompassing Joypolis facilities, or not. I’m not sure therefore I’m not making speculations on the subject. Update: Xavier above mentions that Joypolis operations have been transferred to a different person This new information only confirms that. This does not mean that Sega has stopped creating arcade machines. They just made a deal to sell their stakes within one of their divisions. What will they do with the money they received from this deal? I don’t know. But, I haven’t found anything to suggest that Sega is leaving the arcade business , as many are saying. However, Sega continues forward in developing and creating new games. We tend to overlook the fact that arcades in Japan are run on a different business model from the rest of the world. It also has been unsuccessful. Most new equipment runs off of revenue sharing to the manufacturer/developer — even when you buy the game cabinet. This means that the margins for operating the business for the company razor-thin when you have to take into account all of the other costs the location is faced with such as rent, insurance, taxes and wages, maintenance electrical, and so on. There’s only one system that is in Japan right now that is bucking this trend. It’s the commonly mentioned exA-Arcadia. Its lack of rev sharing is one of the reasons why the platform has performed very well in Japan. GENDA seems to be looking to alter the direction of the places. People who are willing change and adapt are often the ones who prosper. The situation will be monitored and we’ll watch what happens. However, we shouldn’t get caught up in all the negativity. In general, there’s lots of potential to develop Japanese arcades. My love for video games has been aspect of my life since the age of. Since 2008, Arcade Galactic, located in West Valley City, Utah I’ve been the operator of my own arcade. My heart is warm for Sega, Nintendo, and Atari. Newsbytes: CAX 2022; firestone ceases Lending; TekyGo! It doesn’t comes unexpected. There’s no big announcement for the 60th anniversary, rare new games designed for the consumer market, and Corona offers the rest of the arcade section. Actually it’s a wonder that SEGA remains alive. Yes, I’ve read many misconceptions about this story. Reliable news sources such as ours and yours were right about it (as normal) but many social media posts were totally wrong. Joypolis is not included in the deal because Sega contracted the management of Joypolis to China Animations Character in 2016 following the exact trick as today. Joypolis is still around and hasn’t changed much other than Initial D 4 Limeted being replaced by Spicy Taxi; which is an absolute pity. This should calm people. I’m sure games centers will be Sega brand. Maybe the new management will come up with new ideas to rejuvenate the arcade video game industry.