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Sega Sammy Holdings

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This article is about the holding company. For separate articles on the two flagship brands, see Sega and Sammy Corporation.

Sega Sammy Holdings Inc.
Sega Sammy
Native name
セガサミーホールディングス株式会社
Sega Samī Hōrudingusu kabushikigaisha
Company typePublic
TYO: 6460
ISINJP3419050004 Edit this on Wikidata
IndustryMass media
Entertainment
Predecessors
FoundedOctober 1, 2004; 20 years ago (2004-10-01)
HeadquartersSumitomo Fudosan Osaki Garden Tower,
Shinagawa, Tokyo
,
Japan
Area served
Worldwide
Key people
Products
RevenueIncrease ¥467.896 billion (2024)[1]
Increase ¥56.836 billion (2024)
Increase ¥59.778 billion (2024)
OwnerHajime Satomi (11.97%)
Number of employees
7,535[2] (2021)
Subsidiaries
Websitewww.segasammy.co.jp

Sega Sammy Holdings Inc.[a] (also known as the Sega Sammy Group or simply as Sega Sammy) is a Japanese global holding company and conglomerate formed from the merger of Sega and Sammy Corporation in 2004. Both companies are involved in the amusement industry (Sega with arcade and home video games, Sammy with pachinko machines).[3]

Corporate history

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The Sega Sammy Holdings logo used from the incorporation of the company until 2018.

Sega

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Main article: Sega § History

Sega was founded on June 3, 1960, by American businessman Martin Bromley. The company started to distribute slot machines to U.S. bases in Japan. During the 1960s, Service Games was renamed to Sega Enterprises Ltd. Sega Enterprises sold their first product, the electro-mechanical game called Periscope which became a worldwide hit. In 1969, Sega Enterprises was acquired by U.S. conglomerate Gulf and Western Industries (which also owned the famed movie studio Paramount Pictures around this time). In 1983, Sega launched the Sega Computer Videogame SG-1000, the first 8-bit video game platform. In 1986, a management buyout, led by Computer Service acquired Sega Enterprises through capital participation. Sega Europe Ltd. was established in Europe, and in 1985, Sega Enterprises, Inc. was established in the United States. These regional subsidiaries served as a marketing base for amusement arcade machines.[4]

During 1985, Sega released Hang-On, the world's first force feedback game. Sega Enterprises was registered stock on over-the-counter (OTC) market. In 1988, Sega listed stock on the second section of Tokyo Stock Exchange. Within this year, Sega released the Sega Mega Drive/Genesis, a 16-bit home video game platform that solidified Sega's presence in the console market. During this year, Sega also launched the R-360, the world's first amusement arcade cabinet could rotate 360 degrees in all directions. In 1991, Sega released Sonic the Hedgehog as a competitor mascot to represent Sega against Nintendo's Mario, and with 15 million copies sold, Sonic the Hedgehog spawned multiple sequels over the years and became Sega's flagship franchise.[4]

In 1992, Sega released Virtua Racing in order to utilise polygonal 3D-graphics engines, and in 1993, Sega released Virtua Fighter, the world's first polygonal 3D fighting game. In 1994, Sega launched the Sega Saturn, a 32-bit home video game platform. In 1995, Sega launched Print Club Arcades in partnership with Atlus. In 1996, Sega released Sakura Wars, a Japan exclusive sim-based Strategy RPG that became a cultural phenomenon within Japan, spawning a multi-media franchise. In 1997, Sega attempted to merge with toy manufacturer Bandai with Sega as the surviving entity (which would be named Sega Bandai following the merger), but the deal eventually fell through. In 1998, Sega launched the Sega Dreamcast. In 2000, Sega Enterprises changed their name to Sega Corporation. During this year, Sega released Phantasy Star Online, the first networked role-playing game (RPG) for home video game platforms. In 2001, Sega discontinued the Dreamcast and withdrew from the console hardware industry to become a third-party video game developer and publisher.[4]

Sammy Corporation

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Main article: Sammy Corporation § History

Sammy Corporation was founded on November 1, 1975, as Sammy Industry Co., Ltd. by Japanese business magnate, Hajime Satomi. It was formed from Satomi Corporation's manufacturing and marketing divisions for amusement arcade machines. In the 1980s, Sammy marketed and sold Pachislot machines, and in the 1990s, Sammy expanded their portfolio by marketing and selling Pachinko machines. These two business ventures have been the primary pillar of Sammy Corporations revenue. During 1997, Sammy Industry Co., Ltd. changed its name to Sammy Corporation. By 2000, Sammy Corporation was listed in the Tokyo Stock Exchange's 1st section, indicating it as a "large company".[5] Outside of Pachinko and Pachislot industry, Sammy Corporation was also involved in the video game industry as a publisher for fighting games such as the Guilty Gear series (developed by Arc System Works), The Rumble Fish series (developed by Dimps) and Survival Arts.

Formation

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In February 2003, Sega and Sammy announced their intentions to merge. Sammy president Hajime Satomi would head the new company.[6] However, this deal ultimately fell apart. In the year following, Sammy purchased 22.4% of Sega, forced out several Sega executives, and installed Satomi as chairman. By May 2004, the two companies announced a new merger, though this was essentially a takeover of Sega by Sammy. Sega president Hisao Oguchi was named vice president of the new company.[7]

According to the first Sega Sammy Annual Report, the merger happened due to the companies facing financial difficulties. According to chairman Hajime Satomi, Sega had been in the red for nearly 10 years[8] and lacked a clear financial base. Sammy, on the other hand, feared stagnation and overreliance of its highly profitable pachislot and pachinko machine business, and wanted to diversify its business in new fields, using Sega's broader range of involvement in different entertainment fields.[9][6]

Beginning of operations

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In 2005, Sega Europe acquired British studio The Creative Assembly.[10] That same year, Sega Sammy acquired 50.2% voting shares of animation studio and entertainment company TMS Entertainment, converting the company into a consolidated subsidiary. Sega Sammy previously held a minority stake in TMS, which was inherited from Sega.[11] In 2006, Sega Europe purchased Sports Interactive.[12]

On December 22, 2010, Sega Sammy Holdings acquired the remaining outstanding shares of TMS Entertainment, Sammy NetWorks, and Sega Toys, thus making all three companies, wholly owned subsidiaries of Sega Sammy Holdings.[13] In April 2017, Marza Animation Planet, Sega's CGI animation studio, was restructured into TMS Entertainment.[14]

Together, as the Sega Sammy group, the company has grown and acquired and founded multiple companies.[15]

Restructuring

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Until 2015, the group was structured in four areas:[16]

  • The "Consumer Business", which contained video games, toys and animation.
  • The "Amusement Machine Business" which contained Sega's arcade business.
  • The "Amusement Center Business" which contained Sega's amusement centers and theme parks.
  • The "Pachislot and Pachinko Business" is the Sammy Corporation and is the main pillar of the group's revenue.

For the better half of the first decade of the holding's existence it has sought the arcade machine sales of Sega and the pachinko sales of Sammy, as its biggest financial incentive. A shift happened in the 2010s, leading to the "Group Structure Reform" in 2015. Casinos, resorts and digital games became the biggest financial incentives. Arcade sales and packaged games from Sega has softened, while growth in pachinko sales is not anticipated.[17] By this point, Sega Sammy restructured into three business units: Entertainment Contents (which compromises of the company's video game, animation, amusement and toy companies, all under Sega Holdings), Pachinko & Pachislot (compromising of the company's gambling business, under Sammy) and Resort (compromising of the company's resort and casino assets).

Post-restructuring

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On November 4, 2020, it was announced that Sega Sammy would sell 85.1% of Sega Entertainment, its arcade operating business, to Genda Inc., an amusement equipment rental business, due to the effects of the COVID-19 pandemic on its arcade and amusement facilities businesses. Sega will still be involved in the arcade machine manufacturing business.[18][19]

On January 29, 2021, Sega Sammy announced that it would restructure and split its corporate functions for their businesses which occurred at the beginning of the 2022 fiscal year.[20] That same year, it was announced that Sega Sammy would be a kit sponsor for J2 League club Tokyo Verdy, and their women's team, Nippon TV Tokyo Verdy Beleza, and also sponsored a Tokyo Classic match on September 26, 2021, between Verdy and crosstown rival FC Machida Zelvia.[21]

Sega Sammy Holdings announced in April that they have made a €706 million ($776 million USD) offer to acquire Rovio Entertainment.[22] Rovio rejected an earlier acquisition bid from Israeli mobile company Playtika for $800 million.[23] The deal closed on 17 August 2023, making the latter company a wholly owned subsidiary of Sega.[24]

In November 2023, Sega Sammy Creation announced that it would acquire sports betting company, GAN Limited, for the price of $1.97 per share pending regulatory approval.[25]

In January 2024, Sega Sammy announced that it would transfer the Amusement Machine business of Sega to Sega Toys, while also changing the name of Sega Toys to Sega Fave Corporation, which is scheduled to take effect during April of 2024.[26] In order for the company to focus more on its core businesses, the company's board has elected that it would sell Phoenix Segaia Resort to Fortress Investment Group on May 10 that same year pending regulatory approval.[27]

In July 2024, Sega Sammy announced it would acquire Dutch online gambling platform Stakelogic for $141 million, pending regulatory approval with the transaction set to close by the 2026 fiscal year.[28]

Business structure

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Sega Sammy's business consists of three segments, which covers entertainment contents (including video games, animation and toys), pachinko & pachislot and casino & resort.

Entertainment contents business

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The entertainment contents business provides a diverse range of entertainment from digital content to toys. These are the companies and subsidiaries affiliated with the Sega Sammy Group's entertainment contents business.[29]

Pachislot and Pachinko machine business

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These are the companies and subsidiaries affiliated with Sega Sammy Group's pachislot and pachinko machine business.[30]

  • Sammy Corporation
    • Sammy Networks Co., Ltd.
      • Artic Arcade
    • Sammy Digital Security
    • Ginza Corporation
    • RODEO Co., Ltd.
    • Taiyo Elec Co., Ltd.
    • m2R Co., Ltd.

Gaming business

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These are companies charged with operating the Sega Sammy Group's resorts and casinos, including the development and sale of casino machines.[31]

  • PHOENIX RESORT CO., LTD.
  • PARADISE SEGASAMMY Co., Ltd.
  • Sega Sammy Golf Entertainment Inc.
  • Sega Sammy Creation Inc.

Other Group Companies

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Current affiliates

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Former affiliates and/or subsidiaries

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  • Sammy Studios (now High Moon Studios)
  • Sega Entertainment Co., Ltd. (Sega's former arcade business; majority stake sold in 2020 to Genda, with remainder sold January 2022)
    • Oasis Park Co., Ltd.
  • SI Electronics Ltd.
  • SIMS Co., Ltd.
  • Index Corporation
    • Index Asia Co, Ltd.
  • Technosoft
  • Visual Concepts (Sold to Take-Two Interactive)
  • Dimps Corporation (Sega and Sammy were major shareholders at one point, along with Bandai Namco Entertainment and Sony Interactive Entertainment)
  • Japan Multimedia Services Corporation
  • HONEST Co., Ltd.
  • InfiniTalk Co., Ltd.
  • patina Co., Ltd.
  • D×L CREATION Co., Ltd.
  • Butterfly Corporation
  • f4samurai, Inc.
  • Sega Sammy BUSAN INC.
  • Relic Entertainment (Became independent)
  • Sega Games Co., Ltd. (Merged with Sega Interactive in April 1, 2020)
  • Sega Interactive Co., Ltd. (Merged with Sega Games in April 1, 2020)
  • Sega Networks Co., Ltd. (Absorbed into Sega Games in April 1, 2015)
  • AG Square (merged into Sega Entertainment on October 1, 2012)
  • Red Entertainment
  • Spike
  • Sega Sammy Investment and Partners (merged with Marza Animation Planet in March 2011)
  • Sega Amusements International (transferred to Kaizen Entertainment Limited on March 30, 2021. The company will continue to use the Sega brand after the transfer.)[33]
  • Sega Group Corporation (previously known as Sega Holdings Co., Ltd. before being renamed in April 1, 2020. It was absorbed into Sega in April 1, 2021)
  • Sega Music Networks Co., Ltd.

See also

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Notes

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  1. ^ Japanese: セガサミーホールディングス株式会社, Hepburn: Sega Samī Hōrudingusu kabushiki gaisha

References

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  1. ^ "FLASH REPORT CONSOLIDATED FINANCIAL STATEMENTS [Japanese GAAP] Year Ended March 31, 2024". Archived from the original (PDF) on August 5, 2024. Retrieved May 10, 2024.
  2. ^ INTEGRATED Report 2021 (PDF). Sega Sammy Holdings. January 11, 2022. Retrieved October 4, 2022.
  3. ^ "Sega Sammy Holdings Background - After Integration". Sega Sammy Holdings. Retrieved February 9, 2014.
  4. ^ a b c "History of SEGA SAMMY Group/SEGA before Business Integration". Sega Sammy Holdings Inc. Archived from the original on December 20, 2016. Retrieved December 11, 2016.
  5. ^ "History of SEGA SAMMY Group/Sammy before Business Integration". Sega Sammy Holdings Inc. Archived from the original on July 23, 2018. Retrieved December 11, 2016.
  6. ^ a b Belson, Ken (February 13, 2003). "Game's Over: Troubled Sega Agrees to Merge With Sammy". The New York Times. ISSN 0362-4331. Retrieved July 28, 2024.
  7. ^ Niizumi, Hirohiko; Thorsen, Tor (May 26, 2004). "Sammy merging with Sega". GameSpot. Retrieved July 28, 2024.
  8. ^ Hirohiko Niizumi (June 1, 2004). "Sammy reveals new logo, changes at Sega". GameSpot. Retrieved November 16, 2016.
  9. ^ "Annual Report 2005" (PDF). Sega Sammy Holdings Inc. September 5, 2005. Archived from the original (PDF) on March 4, 2016. Retrieved November 16, 2016.
  10. ^ Jenkins, David (March 8, 2005). "Sega Acquires The Creative Assembly". Game Developer. Retrieved July 31, 2024.
  11. ^ Macdonald, Christopher (October 9, 2005). "Sega Sammy Acquire TMS". Anime News Network. Retrieved July 31, 2024.
  12. ^ Stuart, Keith (April 4, 2006). "Sega buys Sports Interactive". The Guardian. Retrieved July 31, 2024.
  13. ^ "Notice Concerning Exchange of Shares to Convert Sammy NetWorks Co., Ltd., SEGA TOYS CO., LTD. and TMS ENTERTAINMENT, LTD. into Wholly Owned Subsidiaries of SEGA SAMMY HOLDINGS INC" (PDF). Sega Sammy Holdings. August 27, 2010. Archived (PDF) from the original on October 12, 2013. Retrieved January 9, 2017.
  14. ^ "ABOUT". Marza.com. Marza Animation Planet. Archived from the original on December 22, 2017. Retrieved December 20, 2017.
  15. ^ "Sega Sammy Group - the FACTS" (PDF). www.segasammy.co.jp. Sega Sammy Co., Ltd. 2014.
  16. ^ "Earnings information". Sega Sammy Holdings. Archived from the original on June 1, 2016. Retrieved November 16, 2016.
  17. ^ "2014 Winter Sega Sammy Report" (PDF). Sega Sammy Holdings Inc. November 27, 2004. Retrieved November 16, 2016.
  18. ^ "セガサミーホールディングス＜6460＞、アミューズメント施設運営子会社のセガエンタテイ - M＆A Online - M&Aをもっと身近に。".
  19. ^ Valentine, Rebekah (November 4, 2020). "Sega Sammy sells arcade business Sega Entertainment to Genda Inc". GamesIndustry.biz. Retrieved November 4, 2020.
  20. ^ "Notice regarding the Organizational Restructure of Our Group (company split and absorption-type merger)" (PDF). Sega Sammy Holdings. January 29, 2021. Retrieved May 27, 2024.
  21. ^ "Tokyo Verdy "SEGA SAMMY Group presents Tokyo Classic-From Tokyo to the World-" will be held at FC Machida Zelvia on 9/26 (Sun) - Japan NEWS". October 3, 2021. Archived from the original on October 3, 2021. Retrieved May 25, 2022.
  22. ^ Reid, Jenni (April 17, 2023). "Sega to acquire Angry Birds maker Rovio for $776 million". CNBC. Retrieved April 17, 2023.
  23. ^ Yang, George (April 15, 2023). "Sega is Reportedly Close to Acquiring Angry Birds Developer Rovio for $1 Billion". IGN. Retrieved April 16, 2023.
  24. ^ Scullion, Chris (August 18, 2023). "Sega has completed its acquisition of Rovio". Video Games Chronicle. Retrieved August 18, 2023.
  25. ^ "GAN Announces Definitive Agreement to be Acquired by SEGA SAMMY CREATION". Yahoo Finance. November 8, 2023. Retrieved November 8, 2023.
  26. ^ "Notice regarding the Organizational Restructure in the Entertainment Contents Business (Absorption-type Demerger between consolidated subsidiaries and change of trade name of subsidiary)｜News Release｜SEGA SAMMY HOLDINGS". Notice regarding the Organizational Restructure in the Entertainment Contents Business (Absorption-type Demerger between consolidated subsidiaries and change of trade name of subsidiary)｜News Release｜SEGA SAMMY HOLDINGS. Retrieved January 9, 2024.
  27. ^ Kageyama, Yuri (May 10, 2024). "Japanese game maker Sega Sammy sells resort to US fund". Associated Press.
  28. ^ Bošnjak, Dominik (July 27, 2024). "Sega Acquires Another Company For About $141 Million". Game Rant. Retrieved July 28, 2024.
  29. ^ "Entertainment Contents Business｜Business Summary｜SEGA SAMMY HOLDINGS". Sega Sammy Holdings Inc. December 1, 1994. Retrieved December 11, 2016.
  30. ^ "Pachislot and Pachinko Machines｜Business Summary｜SEGA SAMMY HOLDINGS". Segasammy.co.jp. December 1, 1994. Retrieved December 11, 2016.
  31. ^ "Business Areas｜SEGA SAMMY HOLDINGS".
  32. ^ 4-traders (August 10, 1960). "Sanrio Company, Ltd. company : Shareholders, managers and business summary | Tokyo: 8136". 4-Traders. Retrieved August 13, 2015.{{cite web}}: CS1 maint: numeric names: authors list (link)
  33. ^ "連結子会社の異動（株式譲渡）に関するお知らせ (in Japanese)" (PDF).
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