Why Did Microsoft's Acquisition of SEGA Fall Through?

[Mr Khan]

S.T.A.G.E. said:

brendude13 said:

So...

...SONY didn't kill Sega! Microsoft did!

No one killed Sega but themselves. Microsoft would only be buying a shell of a company. It's not like Rare when as soon as Microsoft purchased the company everyone of value just left.

Not true. From a financial perspective, Sega of 2001/2002 was shot, but they were still a very, very good development studio, and they retained their people for a while

The financial distress (and the fact that Sammy seems to hate them) has slowly starved out Sega of people and development capability ever since, but buying them in 2002 would've netted you a development/publishing powerhouse