
According to an announcement by Sega Sammy Holdings, the company will merge its two subsidiaries Sega Games Co. (SGC) and Sega Interactive Co. (SIC), with SGC becoming the surviving company.
Effective April 1st, Sega Games Co. will be renamed Sega Corporation.
As seen on the press release, the Packaged Games area in the Entertainment Contents Business has performed positively. Its focus is on “expanding overseas markets,” and it has built “a structure capable of generating stable profits”.
The same can’t be said about the Digital Games area focused on mobile games in Japan. It has performed below expectations and has been unable to achieve targets the company had set up back in May 2017 under its “Road to 2020” management plan.
Sega Games has focused on “planning, development, and sales of game-related contents for mobile phones, PCs, smart devices, and home video game consoles.” After the merger, Sega Games (soon-to-be Sega Corporation) will add “development and sales of amusement machines” to its business responsibilities.
Sega Holdings Co. will also change its name after the merge. It will be called Sega Group Corporation.
The business reorganization will help the new Sega “with the aim of expanding corporate value over the medium to long term.”
Hakuri Satomi will be President and CEO at Sega Group and Chairman and CEO at Sega Corporation.

[Source]: Anime News Network: Sega Sammy Merges Sega Games, Sega Interactive Companies.
[Via]: Sega Sammy Group: Notice of mergers between consolidated subsidiaries and changes in trade names of certain consolidated subsidiaries due to organizational restructuring in Entertainment Contents Business.