Sega Sammy Holdings

(also known as the Sega Sammy Group and generally Sega Sammy, stylized as SᴇɢᴀSammy) is a Japanese holding company formed from the merger of Sega and Sammy Corporation in 2004. Both companies are involved in the amusement industry (Sega with arcade and video games, Sammy with pachinko machines).

Corporate history

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 & Western Industries Inc. In 1983, Sega launched the Sega Computer Videogame SG-1000, the first 8-bit video game platform. In 1986, the CSK Group 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.

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.

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.

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". 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''.

Later years

According to the first Sega Sammy ''Annual Report'', the merger of the two companies happened due to the companies facing difficulties. According to chairman Hajime Satomi, Sega had been in the red for nearly 10 years 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.

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

Until 2015, the group was structured in four areas:
* 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.

On December 22, 2010, Sega Sammy Holdings acquired the remaining outstanding shares of TMS Entertainment, thus making TMS Entertainment a wholly owned subsidiary of Sega Sammy Holdings. In April 2017, Marza Animation Planet, Sega's CGI animation studio, was restructured into TMS Entertainment.

On November 4, 2020, it was announced that SEGA SAMMY will sell 85.1% of Sega Entertainment, its arcade 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 business as Sega Entertainment only creates and operates arcade locations while Sega itself manufactures and sells arcade machines.

In 2021, 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.

Structure

Pachislot and Pachinko machine business

These are the companies and subsidiaries affiliated with Sega Sammy Group's pachislot and pachinko machine business.
* Sammy Corporation
* Sammy NetWorks Co., Ltd.
* Ginza Corporation
* RODEO Co., Ltd.
* Taiyo Elec Co., Ltd.

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 Sega Sammy Group's entertainment contents business.
* Sega Group Corporation
** Atlus
*** Atlus USA
** Sega Corporation
*** Sega of America, Inc.
**** Ignited Artists
*** Sega Europe Ltd.
**** Amplitude Studios
**** Creative Assembly
***** Creative Assembly Sofia
**** Hardlight
**** Relic Entertainment
**** Sports Interactive
**** Two Point Studios
*** Sega Korea Co., Ltd.
*** Sega Shanghai Co., Ltd.
** Play Heart, Inc.
** Sega Logistics Service Co., Ltd.
*** Sega Amusements Europe Ltd.
*** Sega Amusements Taiwan Ltd.
** Dartslive Co., Ltd.
*** DARTSLIVE INTERNATIONAL Ltd
*** iDarts Group Ltd.
*** DARTSLIVE ASIA Ltd.
*** DARTSLIVE USA, INC
*** DARTSLIVE EUROPE LTD.
** TMS Entertainment Co., Ltd.
*** Jinni's Inc.
*** Marza Animation Planet, Inc.
*** Telecom Animation Film Co., Ltd.
*** TMS Entertainment USA, Inc.
*** TMS Music Co., Ltd.
**** TMS Music (HK) Ltd.
**** TMS Music (UK) Ltd.
*** TMS Photo Co., Ltd.
*** TOCSIS INC.
** Sega Toys
*** Sega Toys (Hk) Co., Ltd.

Resort business

These are companies charged with operating the Sega Sammy Group's resorts, hotels, golf courses, entertainment and commercial facilities, and casinos.
* PHOENIX RESORT CO., LTD.
* PARADISE SEGASAMMY Co., Ltd.
* Sega Sammy Golf Entertainment Inc.

Other Group Companies

* Music Publishing Label
** Wave Master Inc.
* Casino machines
** Sega Sammy Creation Inc.

Related companies

Current affiliates

* ENGI (Sammy owns 40% of the company, with Kadokawa Corporation owning 53% while making it a direct subsidiary and Ultra Super Pictures having 5%)
* Sanrio Co., Ltd. (formerly held 13.9%, now hold 10.6% of the company)
* Sega Entertainment Co., Ltd. (Majority stake sold in 2020; Still owns 14.9%)
** Oasis Park Co., Ltd.
* CA Sega Joypolis (14.9% minority ownership, the rest of the company is owned and operated by China Animations Character Co.)

Former affiliates and/or subsidiaries

* Sammy Studios (now High Moon Studios)
* 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.

See also

* List of conglomerates

Notes

References

External links

*

{{Portal bar, Tokyo, Japan, Companies, Video games

Companies listed on the Tokyo Stock Exchange
Conglomerate companies based in Tokyo
Japanese companies established in 2004
Holding companies based in Tokyo
Holding companies established in 2004
Keiretsu
Software companies based in Tokyo
Video game companies established in 2004
Video game companies of Japan