With its declining arcade activity, Gulf & Western executives are turning to the president of Sega of Japan, Hayao Nakayama, for advice on how to Procéder.
The company retains the management of Sega's North American Research and Development department, as well as its Japanese subsidiary, Sega of Japan. A slowdown in the arcade from 1982 weakened the company seriously, and led Gulf & Western to sell its North American structure of arcade manufacturing and licensing rights for its arcade games at Bally Manufacturing. In the early years of 1980, Sega Enterprises, Inc., a subsidiary of Gulf & Western Industries, is one of the five largest manufacturers of arcade games operating in the United States, the company's revenues amount to 214 million million to this époque.
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