Sega Sammy has announced it will sell the majority of its shares in its Sega Entertainment division to Japanese amusement rental business Genda Inc.
In an announcement to shareholders today, Sega stated that it would transfer 85.1% of its shares in the subsidiary to Genda, retaining 14.9%, and that the company expected to record "extraordinary losses" in connection with the transfer of ¥20 billion ($191 million) by the end of the fiscal year.
The company goes on to say that the decision comes due to the hefty impacts of COVID-19 on its arcade and amusement facilities businesses, saying that "despite the recent recovery trend, the situation remains uncertain."
These struggles included the closure of Sega's famous Akihabara arcade back in September.
The company filing of the transfer specifies that Genda is purchasing amusement machines and associated prizes and items from Sega as a part of the business transfer.
However, it's worth noting that while Sega Entertainment creates and operates the company's arcade locations, Sega itself still manufactures and sells arcade machines.
GamesIndustry.biz has reached out to Sega for further comment on what this entails for the company's future involvement in the arcade business.