The company sold its games subsidiary, Jaleco, to Game Yarou for 1 yen, with the buyer assuming 700 million yen ($7.7 million) of Jaleco Holding's loan of 16 billion yen ($17.7 million). The transaction took place January 15.
A press statement read, "The risk factors for our profitability will be removed after withdrawing from the game industry." Jaleco noted "increasing competition in recent years in the video game market."
Jaleco's gaming business established in the early 1980s, focusing on arcade games, eventually branching out to home consoles.