In 1979, Gremlin merged its operations with Sega and, from then on, all new video games by Gremlin were labelled either under the Gremlin/Sega or Sega/Gremlin brand names. Some of Gremlin's output, both before and after the marriage with Sega, were titles originally created by Japanese companies. Among theses video games were Namco's Gee Bee and Konami's Frogger.
Gremlin became one of the many victims of the video game crash of 1983 and closed in 1984 after being acquired by Bally with all operations moved from San Diego to Chicago. Some of Gremlin's original wall games have since been re-released under different names.
- In 1984, Gremlin/Sega (Sega/Gremlin) was sold to Bally who closed them down.