Sega to Launch Japanese Gacha Pop-Up Store in America

• Sega, Tomy, and Mitsubishi partnered to showcase Japanese arcade and capsule-toy culture in the U.S.
• The store opens on Nov 22, featuring numerous Japanese arcade games and exclusive prizes.
• The initiative reflects Japan’s push for greater visibility and control as its IP expands overseas.

Sega will collaborate with Japanese entertainment powerhouses Mitsubishi Corporation and Tomy to open a limited-time pop-up store in Santa Monica, California. The pop-up store, named GACHA & CATCH, aims to bring true Japanese arcade culture to the United States. The pop-up will be on a six-month trial; if successful, the companies may open hundreds of such stores across the U.S. by fiscal year 2026 or later.

The GACHA & CATCH store, which opens on November 22, 2025, at 1451 3rd Street Promenade, will have over 100 capsule-toy ("gacha") machines as well as UFO catcher (claw) arcade games. There will be over 300 exclusive prizes, ranging from cuddly toys to other merchandise from renowned Japanese IPs such as Sonic the Hedgehog, Demon Slayer, Jujutsu Kaisen (also known as Dan Da Dan), and Hatsune Miku.

Over the weekend of November 22–23, there will be a special grand opening event to celebrate its opening. Attendees will be able to win tokens for both crane machines and gacha, and will also have the opportunity to collect original stickers and other limited-edition items.

Sega, Tomy, Mitsubishi: Why Are They Investing in the Venture?

The pop-up store is a big venture that Sega is investing in after the release of Sonic Rumble. The company, although a significant player in the video game industry, has contributions in the arcade sector as well. Its UFO Catcher claw machines are extremely popular in Japanese game centers, so much so that they even celebrate a “UFO Catcher Day” on June 24.

The other company in the initiative, Tomy, under its T-ARTS subsidiary, has popularized Gacha since 1988. The company now delivers 40-60 fresh products per month, for a total of approximately 600 each year. Mitsubishi, on the other hand, through its entertainment arm, Japan Entertainment One, backs the initiative as part of a larger expansion of Japanese content overseas.

According to industry data, while Japan's content business is vast and valuable worldwide, local companies continue to rely largely on distribution partners in the United States. The U.S. content market is worth 84 trillion yen ($536 billion), which overtakes China at 42.5 trillion yen and Japan at 14.9 trillion yen, dominating global demand.

Nevertheless, this reliance of Japanese companies forces them into fixed-price licensing agreements, with the majority of the revenue going to American streamers and retailers. In contrast, crane games and capsule toys allow for greater licensing flexibility, prompting companies such as Mitsubishi to look for the possibility of greater revenue.

Building on that opportunity, the GACHA & CATCH pop-up signals a shift in how Japanese entertainment businesses operate globally. The attempt seems to test a model that will give Japan more control and visibility in the U.S. markets, as Japanese IP grows worldwide. The move undoubtedly reflects the Japanese government’s intention of having a more direct, globally engaged New Cool Japan strategy.