Sega Sammy, the Japanese game maker behind “Sonic the Hedgehog,” has announced the sale of its Seagaia resort complex to U.S.-based Fortress Investment Group, as reported by AP News.
This move involves selling all shares in Phoenix Resort Co., the operator of Seagaia in Miyazaki, Japan. The financial details of the transaction were not disclosed. The decision, approved by Sega Sammy’s board of directors, is expected to generate an extraordinary income of approximately 8.5 billion yen ($55 million) for the fiscal year ending in March 2025. New York-based Fortress was selected due to its extensive experience in hotel acquisitions, having acquired 176 hotels since 2011. Following the sale, Sega Sammy will retain a 20% stake in Phoenix through newly issued shares.
Additionally, Sega Sammy reported a decrease in profit for the fiscal year ending in March, with sales increasing by 20%. The company’s entertainment operations include video games such as “Persona 3 Reload,” which saw 1 million downloads within its first week of launch in February. It also produces toys, pachinko, and “pachislot” machines, and holds intellectual property in animation.
While the resort operations have returned to profitability, they faced challenges during the pandemic. By entrusting the management of Seagaia to Fortress, Sega Sammy aims to refocus on its core business of video games. Fortress, predominantly owned by SoftBank Group Corp., awaits regulatory approval for the majority stake acquisition by Mubadala, an Abu Dhabi investment fund, as announced in May 2023.
