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Snoopy said:
derpysquirtle64 said:

In its best years SEGA has great third-party support as well as Nintendo in those years. They both were basically what we see today between Xbox and PS. And even if SEGA had some troubles with getting third-party games it was because Nintendo was threatening publishers to ban them from releasing their games on Nintendo consoles in the future. Because getting Nintendo Seal of Quality was mandatory to release something on Nintendo consoles, they could manipulate publishers with it.

I doubt SEGA would have ever returned. This has nothing to do with the existence of Xbox. If it hadn't arrived it wouldn't have changed anything.

Sega Saturn, Dream cast, ect didn't have good third party support. Also, Sega Genesis was missing key third-party games from Square among other games. For example, I believe Mega Man X and Earthbound never showed up for the Genesis which is a shame because those game were awesome.

I was talking about third-party support in Mega Drive years which was pretty good. As you said, Square and Capcom haven't supported MegaDrive that much though but it was most likely because they were afraid of worsening relationship with Nintendo. MegaDrive had one MegaMan game though. It was re-release of first three NES games in one package. Street Fighter 2 also was there. I think Japanese publishers tried to please Nintendo with not supporting Sega heavily. But, western publishers supported it instead. MegaDrive had lots of western third-party exclusives instead of Capcom or Square games.

P.S. Earthbound is Nintendo first-party game.