Sega has always been known for its arcades. From Sega's GameWorks, to numerous iconic arcade locations in Japan, the company's had a hand or two with running arcades through numerous parts of its history. Unfortunately, that history has come to an end as Sega leaves the arcade business behind and sells off most of its remaining locations.
What many fans know as Sega began as "Service Games" back in 1940, aiming to provide coin-operated machines to military bases in order to give the troops something to do in their off-time. While the company had started off distributing these machines to those locations, Service Games would eventually re-brand as simply "Sega Inc," and start making its own arcade machines with Periscope in 1965. Since then, Sega became a well-known arcade giant, even as the company shifted to making consoles later on.
It seems that the Covid-19 pandemic has forced Sega's history in the arcade industry to end. Last year, Sega announced that most of its major Japanese arcade locations would go to Genda Inc, yet remain under the Sega label, while Sega also sold off its western arcade division. Now, Genda has announced it's rebranding the rest of Sega's former arcades under its own "Get into the Gaming Oasis" Gigo label.
Genda has announced that this branding will be put in place with its Ikebukuro, Akihabara, and Shinjuku locations first before being spread out to the remaining arcades in the rest of the country. On Twitter, the chairman of Genda Inc thanks Sega for its 56 year service in the industry.
The move to leave the arcade industry behind is understandable, especially as the coronavirus pandemic is still leaving its mark on Japan, making business for arcades in particular highly difficult. However, it's still terribly sad to watch as a famous arcade name is slowly fazed out, especially with how Sega's own locations were considered landmarks in the country. When Sega's famous Ikebukuro location closed in September, many fans of the arcade came in droves to watch as it closed shop for the night one last time, giving it a sentimental send-off.
Thankfully, this doesn't mean Sega is going anywhere anytime soon. In Japan, the company will still manufacture its toys and crane games under the Sega Amusements label, and will still create home console games. As Sega leaves the arcade industry behind, this gives the company ample opportunity to move its resources elsewhere, meaning more exciting products for fans to enjoy will most likely come soon enough once the dust settles.