There’s been a lot of celebration around SEGA lately, what with their 60th Anniversary and all; but sadly, it’s not all been cause for partying. SEGA has published extraordinary losses from its amusements division (thanks to COVID-19), leading them to outright sell off the majority of their arcade business to Genda Inc (formerly Midas Entertainment). SEGA will still be producing arcade games, and their arcade centres will still be plastered with the SEGA logo, but those centres are Genda’s now.
That’s not all though, as it’s now emerged that SEGA have asked 650 employees to “voluntarily retire”. Supposedly those who accept the offer to retire by February 2021 will receive a “payment of extraordinary retirement allowances and reemployment support”. SEGA’s executives are also getting hit by the changes, though not nearly as severely as those losing their jobs; instead, the company’s Senior Executive Vice President and Senior Vice President will have 20% and 10% taken out of their monthly salaries respectively… which isn’t exactly much for the salaries they’re probably on. The Representative Director will see a slightly more substantial cut of 30%.
It’s been a rough year for businesses across the world this year, and given their presence in Japan’s arcade scene, it’s not surprising that SEGA got hit hard; but the layoffs are disappointing news all the same. It’s also very likely that SEGA’s mooted ‘Fog Gaming’ concept may not be going ahead anymore, but time will tell if Genda choose to adopt that instead.
When Tracker isn’t playing SEGA games, he’s talking about SEGA games. Or drawing about SEGA games. Or all of the above. You can also catch him over on Twitter.
