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Sega Sammy splits video games and pachinko machines into separate companies

New structure follows a year in which COVID-19 severely disrupted Sega Sammy's operations

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 organisation 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.

The organisation has also announced a change to its management, with Haruki Satomi stepping into the role of group CEO.

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