Sega Sammy Holdings is taking a bold step forward by announcing the formation of “SEGA Fave,” a new business unit that will consolidate its toy and amusement machine sectors. This strategic move aims to streamline operations and capitalize on the combined strengths of Sega’s consumer business and Sega Toys. SEGA Fave will operate under the supervision of the consumer business sector, marking a significant shift in the company’s organizational structure.
Previously, Sega Toys was categorized under the video and toy business alongside animation and video entities like TMS Entertainment. This reorganization leaves the video business standing on its own, highlighting a focused approach to each segment. In the fiscal year ending March 2023, the video and toy business reported sales of 29.3 billion yen, with Sega Toys contributing 13.1 billion yen to this total. Meanwhile, the amusement equipment sector, known for its UFO catchers and prizes, boasted sales of 64.9 billion yen.
SEGA Fave is poised to become a powerhouse, uniting toys, prizes, and character products to deliver new experiential values. This initiative not only aims to enhance Sega Sammy’s market presence but also to bolster Sega Toys’ performance, which has seen a downturn from its 2009 peak sales of 19 billion yen to approximately 70% of that figure in recent years. Weak toy sales during the last year-end sales season and anticipated inventory devaluation underscore the urgency for revitalization.
By leveraging the synergy between its toy and amusement machine businesses, Sega Sammy is setting the stage for a resurgence in growth and innovation. This restructuring reflects a strategic pivot towards enhancing operational efficiency and creating a more robust platform for future expansion.
