Sega dissolves Korean subsidiary, nixing $330m Yokohama arcade complex

Aside from planning to axe 400 jobs as part of Sega Sammy's most recent "turnaround efforts," the outfit will also be closing the doors to its Korean subsidiary. Currently, Sega Korea is "handling the domestic distribution and sales of video game software, as well as the operation / sales of amusement facilities and machines," and reportedly, the closure will be executed in the name of "global business optimization." As it stands, there's no set date for the branch's dissolution, but just in case your smile wasn't turned upside-down already, the company also stated that it would discontinue the development of a ginormous $330m arcade complex slated for construction in Yokohama, Japan -- if you couldn't guess, that one's being shuttered so the firm can "focus its efforts on its core business to improve its performance" in short order. Seriously though, what the hell kind of company would spend $330m on arcade, anyway?

[Via Joystiq, image courtesy of USMC]

[mike @ Apr 1st 2008 1:37AM]

ummm... an awesome company?

[Ty @ Apr 1st 2008 10:05AM]

Winner!

[ByronGman @ Apr 1st 2008 1:38AM]

Arcades are soooo old school, you can't really blame them... although there is some pain in the lost nostalgia.

[pika @ Apr 2nd 2008 1:55AM]

>>ByronGman
May be it is old school for you, but not for me. I used to live in Hong Kong and I love arcades. Unlike the US, the cities in Asia have higher population density comparing to those in US. You can find many arcades around the street and they are awesome and pretty new. You can play shooting and even card game online in the arcades store.
I do admit that I miss arcades since Ive been moving to NY for 5 yrs. The real fun is you can compete with your friend and other people face to face and we all give whatever we've got, with real skills, no hacks.

[pika @ Apr 2nd 2008 2:01AM]

Also, I've fortgot to mention that eveytime I pay a visit in Hong Kong, I usually spend around $40USD within 3 weeks in those arcades machines. And I have to WAIT to get my turn to play. So I do think there is obviously a market and worth putting $ in.
*sorry for using addition comment.

[thelittleleaguecoach.com @ Apr 1st 2008 1:39AM]

could they make their money back though?

[Jordan @ Apr 1st 2008 1:46AM]

Thats a lot of quarters.

[navydavid @ Apr 1st 2008 3:33AM]

I play at the arcade in Yokoham all the time. It's friggin' awesome.

[Russ @ Apr 1st 2008 1:46AM]

I just went to the Sega Joypolis arcade here in Tokyo, and should mention that it's much more than just an "arcade". It's basically a large indoor amusement park complete with rides (indoor coasters and half-pipe rides) and physical movement games (i.e. bobsledding and racing sims). You wouldn't be able to recreate those games in your home, even with a Wii. I think there's definitely a market for these kind of parks in big cities (not much room for full-scale outdoor roller coasters).

[Laron @ Apr 1st 2008 2:25AM]

I bet half of the complex will be full of UFO Catchers.

[CB17 @ Apr 1st 2008 2:27AM]

"dissolves" not "disolves". I'd make some kinda witty remark about what that the latter makes the title mean, but I'm pretty sure it's not a real word. Oh well...

[jingles @ Apr 1st 2008 2:29AM]

That second kid in looks alot like Spock Jr.

[Jordan @ Apr 1st 2008 2:35AM]

MY GOD! He's right!

[K_G @ Apr 1st 2008 2:42AM]

Jeez, you could have at least picked a photo of Sega game, such as house of the dead...Wartran troopers is Konami machine.

[Miguel @ Apr 1st 2008 3:08AM]

"Seriously though, what the hell kind of company would spend $330m on arcade, anyway?"

My kind of company.

[jj @ Apr 1st 2008 4:52AM]

Just because arcade aren't popular around where you are, it doesn't mean it is not popular at all. a lot of new games in Japan do comes out on arcade first before it hit consoles. Do some research man.

[jncojoke @ Apr 1st 2008 6:24AM]

um you must not have ever been to japan the arcade is very much not old school, not here some of the ideas for console games come from these arcades, the arcades are not what American arcades are and were, Sega closing down arcades in Japan is like the NFL getting rid of half of its teams in America. Whole malls are dedicated to arcades they are called Amusements or Musements. A 330 million dollar arcade would be a Musement.

[Fusion @ Apr 1st 2008 6:48AM]

if they spend 330 million on building the arcade, imagine how much it would cost to play the games, probably $50 (£25)! lol

[Fusion @ Apr 1st 2008 6:52AM]

then again maybe less as i know the arcade scene in japan, and south korea
is far bigger and better than the usa and europe

[Mike @ Apr 1st 2008 7:25AM]

Um, is it just me or do these guys look like they're in training for something?

[Koitenshin @ Apr 2nd 2008 10:57PM]

Yes they are, it's called Battle Royale 3: Take over Tokyo.

[Greek in China @ Apr 1st 2008 7:37AM]

Considering Sammy makes a couple hundred million in "arcades" and Pachinko machines a year in Japan alone I don't think $330m is that large. Besides Arcades in Asia aren't crap like they are in the US and Europe.

[Nick @ Apr 1st 2008 8:10AM]

japanese arcades are soo much better than american ones! i goto WaiWai's here in Iwakuni all the time and there are tons of people there all the time. arcades here are huge(in popularity and sometimes in size), arcades with karaoke, bowling or pachinko(or all three) are all over the place, its a big business here. the most amazing arcade games ive ever seen are here. the new tekken games have been out here for awhile and they have them on really high quality lcd screens, they have the new house of the dead and time crisis games on HUGE screens(they almost swallow you, seriously). it's going to make me really sad when i have to move back to the states cause ill miss those places soo badly..

[andrew @ Apr 1st 2008 8:27AM]

"Seriously though, what the hell kind of company would spend $330m on arcade, anyway?"
A really Fu**ing cool one.

[AdamY @ Apr 1st 2008 8:51AM]

I feel a great disturbance in the Force, as if millions of voices cried in terror and were suddenly silenced.

[Jhongerkong @ Apr 1st 2008 6:04PM]

spot on, spot on.

[The Future @ Apr 1st 2008 6:21PM]

Just look at the expressions on those dud's faces.

It is like all their life's meaning is just gone