Sega Sammy splits gaming and pachinko into two separate businesses

Sega Sammy is separating its gaming and pachinko divisions into two separate subsidiaries, the Japanese developer and publisher has revealed.

The company revealed that it has been “working on structural reform to transform its business structure to adapt to the external environment.”

The restructuring will divide the organisation into Sega Group Corporation and Sammy Corporation. Sammy will focus on pachinko, pachislot, and other gambling machines, while Sega Group Corporation will cover the company’s video game operations.

The change will take place on April 1st of this year, and will streamline Sega Sammy’s oversight of both new companies.

While both are wholly-owned subsidiaries of Sega Sammy, they will operate as separate companies. The change is intended to streamline the group’s  structure and accelerate decision-making.

The restructuring comes after a troubled year for the company. While Sega’s gaming division was boosted by the COVID-19 pandemic, these gains were undercut by losses elsewhere – namely in its amusement and resorts divisions. Last November, the company asked 650 of its employees to retire in order to reduce operational costs.