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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