Sega Sammy Holdings, the parent company of the two organizations, announced on December 24 in a press release that Sega Games and Sega Interactive will merge into one organization come April 1, 4gamer reports.
Sega Sammy Holdings will also change its name to SEGA Group and will oversee the newly formed SEGA, pachinko company Sammy Corporation, and anime studio TMS Entertainment.
Currently, the two game companies operate with the same IPs (such as Sonic and Mario at the Tokyo 2020 Olympic Games) but in different spaces, with Sega Games working on game releases on consoles, and Sega Interactive working on arcade machines, mobile ports, and crane games for Sega branded arcades.