while i agree that a Sega Xbox would have done better, I dont think the Japanese would have warmed to it that much, knowing that it was basically MS in disguise. Unless MS let Sega take alot of control (something that wouldnt happen) then they would have basically pushed the same games that Japan didnt want on their Sega Xbox.
The Sega name had already become a failure hardware wise at that point, and releasing another Sega branded machine wouldnt have been much different, atleast not in the west.
Sega as a software company just arnt strong enough, alot of poeple look back and think abou tthe classics etc, but theres also alot of forgotten rubbish too.
I dont think MS made a mistake buying rare either, they thought they were getting the company rare, not the name that was living in the shadow of its previous classics, had they got the real rare that produced Jet Force Gemini, Conker, Banjo and so on, it would have been far far better than getting Sega. Either way they got a bum deal ;)
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