Sega Sammy splits video games

Sega Sammy will split apart its video games and amusement divisions as part of a new company structure.

In a statement released last week, the Japanese firm said it has “been working on structural reform to transform its business structure to adapt to the external environment.”

Going forward, the organization will be divided into Sega Group Corporation, which covers its video games operations, and Sammy Corporation, which encompasses its “pachinko, pachislot, arrange-ball, and jankyu machines”

Both will be wholly owned subsidiaries of Sega Sammy, but will operate as separate companies rather than divisions of a single entity. This will take effect in April this year.

In explaining the decision, Sega Sammy said that the new structure would be “more efficient” and “[accelerate] decision-making.”

This decision has been taken following a difficult year for certain parts of Sega Sammy Holdings’ business. While video games boomed during the COVID-19 pandemic, those gains were erased by the collapse of its amusements and resorts divisions.

In November last year, Sega Sammy called for the voluntary redundancy of as many as 650 full-time employees.

Japan’s Sega Sammy Holdings has reported a profit attributable to owners of the parent of JPY37.03 billion (US$286.4 million) in the 12 months to 31 March 2022, up from a profit of JPY1.27 billion (US$9.9 million) a year earlier thanks to gains in its three core business segments pachinko, computer gaming and resort operations.

Having seen pachinko parlors across the country reopen following COVID-19 enforced closures throughout much of the 2021 financial year, Sega Sammy’s pachislot and pachinko machine business recorded the largest gains, with sales rising 42.6% year-on-year to JPY75.87 billion (US$586.6 million) and income of JPY10.28 billion (US$79.5 million) reversing a prior year loss of JPY11.22 billion (US$86.7 million). The company said this was achieved by reviewing the product line-up including the revival of successful past products and “improving development efficiency”

In the Amusement Contents Business, where it develops new computer games titles, arcade machines and free-to-play online games, net sales grew 8.3% to JPY235.94 billion (US$1.82 billion) while income increased by 32.0% to JPY36.86 billion (US$285.0 million).파칭코

And in the resort segment, comprising non-gaming Phoenix Sea Gaia Resort in Japan plus casino resort Paradise City in Incheon, South Korea of which Sega Sammy holds a 45% stake net sales grew 37.1% year-on-year to JPY8.66 billion (US$67.0 million), with the resort’s loss narrowing from JPY8.98 billion (US$69.4 million) to JPY6.74 billion (US$52.1 million). The company noted that drop was up by 48.5% and the number of guests by 56.9% year-on-year, however, “travel demand has been sluggish due to the impact from the spread of COVID-19.”