Sammy CEO Hajime Satomi's first significant connection with Sega developed through Sega's provision of software for one of Sammy’s pachislot machines. Through this collaboration, Satomi established relationships with several Sega employees. One of the earliest was Hisashi Suzuki, Sega’s vice president of development, whom Satomi respected for maintaining an interest in lower-end machines despite Sega’s reputation for producing high-end arcade titles such as Virtua Fighter.
During a period when Sammy faced financial difficulties, Satomi approached Sega chairman Isao Okawa for a loan. Satomi repaid the loan significantly faster than Okawa had anticipated. Following this, Okawa began consulting Satomi on various matters concerning Sega and at one point asked him to consider becoming the company’s CEO, though Satomi declined at the time, stating that the timing was not appropriate.
Satomi also developed a relationship with Hisao Oguchi, the head of Sega’s AM3 division. Suzuki held Oguchi in high regard, and Satomi and Oguchi later attended a gaming trade show in the United States together, which further strengthened their professional relationship. Satomi viewed Oguchi positively as a relatively young executive who had only recently assumed his position, in contrast to several other executives whom Satomi reportedly viewed less favorably after speaking alone with around 150 Sega staff members for 30 minutes at a time. According to Satomi, executives at Sega had contradictory visions for the company, which strained staff on the ground.[7]
In February 2003, Sega and Sammy announced their intentions to merge. Satomi would head the new company.[8][9] 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.
The combined company was named Sega Sammy Holdings rather than “Sammy Sega,” despite Sammy providing much of the capital. The naming decision was intended to help maintain morale among Sega employees.[7]
According to the first Sega Sammy Annual Report, the merger happened due to the companies facing financial difficulties. According to Satomi, Sega had been in the red for nearly 10 years[10] 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.[11][8] Because there is not much overlap in culture between Sega and Sammy, this was done to have a more synergy among the group.[12]
Beginning of operations
In 2005, Sega Europe acquired British studio The Creative Assembly.[13] 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.[14] In 2006, Sega Europe purchased Sports Interactive.[15]
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.[16] In April 2017, Marza Animation Planet
Restructuring
Until 2015, the group was structured in four areas:[19]
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.[20] 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).
- 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.
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.[21][22]
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.[23] 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.[24]
Sega Sammy Holdings announced in April that it has made a €706 million ($776 million USD) offer to acquire
