Sega Sammy Holdings

Last updated

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
Romanized name
Sega Samī Hōrudingusu kabushikigaisha
Company type Public
TYO: 6460
ISIN JP3419050004  OOjs UI icon edit-ltr-progressive.svg
Industry Mass 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
RevenueIncrease2.svg ¥467.896 billion (2024) [1]
Increase2.svg¥56.836 billion (2024)
Increase2.svg¥59.778 billion (2024)
OwnerHajime Satomi (11.97%)
Number of employees
7,535 [2]  (2021)
Subsidiaries
Website www.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]

Contents

Corporate history

The Sega Sammy Holdings logo used from the incorporation of the company until 2018. SEGA SAMMY GROUP logo.svg
The Sega Sammy Holdings logo used from the incorporation of the company until 2018.

Sega

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

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

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

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

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

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

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

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

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

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

Gaming business

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

Other Group Companies

Current affiliates

Former affiliates and/or subsidiaries

See also

Notes

  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

Related Research Articles

<span class="mw-page-title-main">Capcom</span> Japanese video game company

Capcom Co., Ltd. is a Japanese video game company. It has created a number of critically acclaimed and multi-million-selling game franchises, with its most commercially successful being Resident Evil, Monster Hunter, Street Fighter, Mega Man, Devil May Cry, Sengoku Basara, Dead Rising, Dragon's Dogma, Ace Attorney, and Marvel vs. Capcom. Established in 1979, it has become an international enterprise with subsidiaries in East Asia, Europe, and North America.

<span class="mw-page-title-main">Taito</span> Japanese toy and video game company

Taito Corporation is a Japanese company that specializes in video games, toys, arcade cabinets, and game centers, based in Shinjuku, Tokyo. The company was founded by Michael Kogan in 1953 as the Taito Trading Company, importing vodka, vending machines, and jukeboxes into Japan. It began production of video games in 1973. In 2005, Taito was purchased by Square Enix, becoming a wholly owned subsidiary by 2006.

<span class="mw-page-title-main">SNK</span> Japanese video game company

SNK Corporation is a Japanese video gaming and interactive entertainment company. It was founded in 1978 as Shin Nihon Kikaku by Eikichi Kawasaki and began by developing coin-op games. SNK is known for its Neo Geo arcade system on which the company produced many in-house games and now-classic franchises during the 1990s, including Aggressors of Dark Kombat, Art of Fighting, Fatal Fury, King of the Monsters, Metal Slug, Samurai Shodown, The King of Fighters, The Last Blade, Twinkle Star Sprites, and World Heroes; they continue to develop and publish new titles in some of these franchises on contemporary arcade and home platforms. Since the 2000s, SNK have diversified from their traditional arcade focus into pachislot machines, mobile game development and more recently character licensing.

<span class="mw-page-title-main">Konami</span> Japanese entertainment and video game company

Konami Group Corporation, commonly known as Konami, is a Japanese multinational entertainment company and video game developer and publisher headquartered in Chūō, Tokyo. The company also produces and distributes trading cards, anime, tokusatsu, pachinko machines, slot machines, and arcade cabinets. It has casinos around the world, and operates health and physical fitness clubs across Japan.

<span class="mw-page-title-main">Atlus</span> Japanese video game company

Atlus Co., Ltd. is a Japanese video game developer, publisher, arcade manufacturer and distribution company based in Tokyo. A subsidiary of Sega, the company is known for video game series such as Megami Tensei, Persona, Etrian Odyssey, and Trauma Center, as well as Print Club (purikura) arcade machines. Its corporate mascot is Jack Frost, a snowman-like character from their Shin Megami Tensei series. Outside of video games, the company is known for their Purikura arcade machines, which are selfie photo sticker booths popular in East Asia.

Midway Games Inc. was an American video game company that existed from 1958 to 2010. Midway's franchises included Mortal Kombat, Rampage, Spy Hunter, NBA Jam, Cruis'n and NFL Blitz. Midway also acquired the rights to video games that were originally developed by WMS Industries and Atari Games, such as Defender, Joust, Robotron: 2084, Gauntlet and the Rush series.

<span class="mw-page-title-main">Bandai Visual</span> Defunct Japanese anime and distribution company

Bandai Visual Co., Ltd. was a Japanese anime, film production, and distribution company, established by Bandai and a subsidiary of Bandai Namco Holdings. They focused mainly in international distribution of anime properties in North America.

<span class="mw-page-title-main">Banpresto</span> Japanese toy company and video game developer

Banpresto Co., Ltd. was a Japanese video game developer and publisher headquartered in Shinagawa, Tokyo. It had a branch in Hong Kong named Banpresto H.K., which was headquartered in the New Territories. Banpresto was a partly-owned subsidiary of toymaker Bandai from 1989 to 2006, and a wholly-owned subsidiary of Bandai Namco Holdings from 2006 to 2008. In addition to video games, Banpresto produced toys, keyrings, apparel, and plastic models.

<span class="mw-page-title-main">Sammy Corporation</span> Developer and retailer of pachinko machines

Sammy Corporation is a Japanese developer and retailer of pachinko and pachislot machines, headquartered in Shinagawa, Tokyo. Its South Korean office, Sammy Amusement Service, is headquartered in Seoul, South Korea. Sammy is a subsidiary of the entertainment conglomerate Sega Sammy Holdings.

<span class="mw-page-title-main">Bandai Namco Holdings</span> Japanese entertainment holding company

Bandai Namco Holdings Inc., commonly known as Bandai Namco and formerly Namco Bandai until 2015, also known as Bandai Namco Group, is a Japanese entertainment holding company founded in 2005 by the merger of Namco and Bandai. The company specializes in toys, video games, arcades, anime, restaurants, and amusement parks. They are also unofficially nicknamed as "Bamco" by some. The conglomerate is made up of:

<span class="mw-page-title-main">Sega AM1</span> Japanese development team within Sega

Sega AM Research & Development No. 1 is a development department within Japanese toy and amusement game company Sega Fave that also previously existed as Wow Entertainment and Sega Wow Inc. AM1 spent most of its early existence under the leadership of Rikiya Nakagawa and developed a number of arcade games for Sega.

<span class="mw-page-title-main">Sega Fave</span> Japanese toy and video game company

Sega Fave Corporation, previously known as Sega Toys Co., Ltd. until 2024, is a Japanese toy and arcade company which is a wholly owned subsidiary of Sega Sammy Holdings. The company was founded when Yonezawa Toys, Japan's largest post-war toy manufacturer, was absorbed into Sega in 1991 as Sega-Yonezawa.

<span class="mw-page-title-main">Hajime Satomi</span> Japanese businessman (born 1942)

Hajime Satomi is a Japanese businessman. Satomi is known as the founder of Sammy Corporation, which merged with the Japan-based video game and arcade game producer Sega to form the holding company Sega Sammy Holdings.

iXIT Corporation Japanese technology company

iXIT Corporation, formerly known as Index Corporation, is a Japanese corporate information and communications technology company owned by Sawada Holdings.

Hisao Oguchi is a Japanese business executive. He was director, vice chairman, and chief creative officer of Sega Sammy Holdings Inc. Oguchi originally was President and CEO of Sega. He was president and CEO of Sega Sammy Creation. He is currently a director of UDream, a content production company.

<span class="mw-page-title-main">Rovio Entertainment</span> Finnish video game developer

Rovio Entertainment Oyj is a Finnish-American video game developer based in Espoo. Founded in 2003 by Helsinki University of Technology students Niklas Hed, Jarno Väkeväinen and Kim Dikert, the company is best known for the Angry Birds franchise. The company currently operates studios in Barcelona, Toronto, Montreal, Espoo, Stockholm, and Copenhagen. The company's success has helped to establish Finland as a leading player in the mobile game industry and has helped to create a thriving ecosystem for game development in the country. In August 2023, Sega bought Rovio for US$776 million and was made a subsidiary of the Sega Europe division.

<span class="mw-page-title-main">Sega</span> Japanese video game company

Sega Corporation is a Japanese multinational video game company and subsidiary of Sega Sammy Holdings headquartered in Shinagawa, Tokyo. It produces several multi-million-selling game franchises for arcades and consoles, including Sonic the Hedgehog, Angry Birds, Phantasy Star, Puyo Puyo, Super Monkey Ball, Total War, Virtua Fighter, Megami Tensei, Sakura Wars, Persona, and Yakuza. From 1983 until 2001, Sega also developed its own consoles.

<span class="mw-page-title-main">TMS Entertainment</span> Japanese animation studio

TMS Entertainment Co., Ltd., formerly known as Kyokuichi is a Japanese animation studio owned by Sega Corporation.

<span class="mw-page-title-main">CA Sega Joypolis</span> Amusement park company

CA Sega Joypolis Ltd. is a subsidiary of the Chinese company CA Cultural Technology Group Limited, which controls Sega-branded Amusement Parks in Asia, such as Joypolis.

<span class="mw-page-title-main">History of Sega</span> History of Japanese video game company

The history of Sega, a Japanese multinational video game and entertainment company, has roots tracing back to American Standard Games in 1940 and Service Games of Japan in the 1950s. The formation of the company known today as Sega is traced back to the founding of Nihon Goraku Bussan, which became known as Sega Enterprises, Ltd. following the acquisition of Rosen Enterprises in 1965. Originally an importer of coin-operated arcade games to Japan and manufacturer of slot machines and jukeboxes, Sega began developing its own arcade games in 1966 with Periscope, which became a surprise success and led to more arcade machine development. In 1969, Gulf and Western Industries bought Sega, which continued its arcade game business through the 1970s.

References

  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. 1 2 3 "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. 1 2 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).
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.