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I consider the deal between Nintendo and Sega to be a major disappointment. It did have potential on paper, but it was cought up by reality. Sega as a company, at least on a management level, lack what it takes to produce high quality content on a regular basis. Every now and then they do manage to produce high quality software, but those moments are rare.
Making money is of course Segas main objective (as with any other company), but during the last 13 years they have changed their approach to that objective. As the game industri has become more main stream, software companies have found it increasingly easier to make money on medium quality games. Why bother making high quality games when medium quality games like Watch Dogs, Assassins Creed Unity and Destiny has such great sales? It is a valid question from a business perspective. And all too often you find the answer to be; Don't bother at all!
Sega's downfall as a game developer is closely linked to them terminating their hardware business. It's unfortunately the only logical "evolution" of their business, as with any large publicly owned software company in the game industry.
And this is also the reason why Nintendo should stay in the hardware business for as long as it makes them profitable (even though they probably could make more money short term by going third party).