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This story was going viral across the web this morning, and I’ve been seeing a lot of posts on it that aren’t true or spread the false idea that arcades are done in Japan and that Sega has done with arcades all over the world. Let’s make sure we know the facts! For some background, GENDA is a Japanese firm that is focused on operating hundreds of pieces of arcade equipment across the United States. Kiddleton is a Chuck E. Cheeses-like division which is located in Texas. The news that came out today , but is not accurately reported by all media outlets is that GENDA is buying all of SEGA Entertainment Co., Ltd.’s shares. SEGA Entertainment Co., Ltd. What is this means is that locations are changing ownership. This doesn’t mean these locations are shutting down (see the below statement from the company). They’ll likely be unable to carry the Sega name, if GENDA decides, which is a pity for anyone wanting to go to an «real Sega arcade.» It is certainly possible that some may close when GENDA decides to shutter poor locations but are they all? UPDATE: Famitsu weighs in, explaining that the majority of the funds Sega invested in the business will now be directed towards their console game development business (not developing a new console, but shifting resources and personnel into the home department for game development). IT states that the Sega branding will remain on the sites, which means tourists will still be able to visit on their return to Japan. Here’s an article from Google Translation that explains what they’re 1 up game (Capitalguidance.co) (Capitalguidance.co) to. Through the creation of an entertainment network that is global We aim to make life more enjoyable. Our goal is to create a world that is more enjoyable. We are currently building and expanding the amusement machine rental service and our online game business, our sales promotion company, China business, and US business. SEGA Entertainment’s purpose is to make people smile and experience positive emotions by providing «fun places». It is home to 199 entertainment locations (including 193 amusement parks) across the country. As an amusement-related company, we are happy to be the third largest business scale in Japan. We intend to revitalize the industry for both manufacturers and operators by partnering with SEGA Entertainment. We can tell that the fun will rise for all involved, including the end users. That’s our aim. I’ll need to do some research to find out whether this will also include Joypolis facilities, or not. I’m not sure, so I’ll refrain from making any speculations about it. UPDATE: Xavier above mentions that Joypolis operations were acquired by a third party This new information only adds to that. This doesn’t mean that Sega has stopped making arcade machines. They recently transferred their stake to one of their divisions. What are they planning to do with the proceeds from this transaction? I’m not certain. However, there is nothing I’ve read to suggest that Sega is «exiting the arcade market» like some are proclaiming. On the contrary, Sega continues forward in building and creating new games. We often forget that arcades in Japan operate on a different model from the rest of the world. They also have had a failure. Most new equipment runs off of revenue sharing to the manufacturer/developer — even when you buy the game cabinet. This leaves the margins of running the business for the player very slim when you take into account all of the other expenses a location faces like rent and insurance, taxes wage, maintenance electrical, and so on. The only one that is not in the current trend in Japan is exA-Arcadia. This platform’s lack of rev-sharing is one of the reasons why it has been able to perform so well. GENDA seems to be looking to alter the direction of their locations. The ones who are willing to adjust and change are often those who succeed. We’ll keep an eye on the situation and watch how it plays out, but let’s not get bogged down in the negativity and doom — overall , this holds a lot of potential for growth for Japanese arcades. I’ve always been a avid gamer and I’ve run my own arcade, Arcade Galactic located in West Valley City, Utah since 2008. My heart is soft for Sega, Nintendo, and Atari. Newsbytes: CAX 2022; firestone ceases Lending; TekyGo! It doesn’t comes unexpected. There’s no major release to celebrate the 60th anniversary. Corona provides the rest for the arcade section. It’s incredible that SEGA is still around. Yes, there was an abundance of incorrect information regarding this incident. Reliable news sources such as our site and yours were right about it (as normal) but a large portion of social media posts got it completely wrong. Sega didn’t include Joypolis in the deal. Sega transferred the Joypolis management to China Animations Characters later in 2016 with the same technique that’s used today. Joypolis is still in operation and hasn’t been changed in a significant way, except for Initial D 4 Limeted being replaced by Spicy Taxi; which is a complete shame. This should be reassuring to people. Sega will continue to be the brand for the game centers, I am certain. Perhaps the new management will have fresh ideas to revitalize the business of arcade video games.