After less than two years of operation in China, Sega China is rumored to be pulling out of China.

According to various local media, the company sent an internal email to all its employees saying that they had to dissolve the online games business department due to inadequate operations. Each employee will get an amount of compensation depending on the duration they worked with the company and the position they took at the company, but the compensation amount shall not be less than three months' salary of each employee.

Sega seems to have made good arrangements for its employees after the dissolution, but it has not taken any measures to assuage existing players, which makes many of them very angry.

Set up in 1960, Sega is one of the largest entertainment software and electronic entertainment software product suppliers. It set up Sega Networks China in October 2005 in Beijing and later established a branch in Shanghai with the company's focus shift to the East China region. The products run by Sega of China include Rainbow Knight, Tongtong OL, and Sega Games Platform.