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Forums - Microsoft Discussion - Crazy Question/Prediction: Will Microsoft buy SegaSammy due to $ woes?

I think people forget that during the mid-90s, Sega was indeed one of the most versatile, and best software developers in the world - Virtua Fighter, Phantasy Star, Nights, Sonic, Crazy Taxi just to name a few. Sega is still a huge name in the arcade business (which is causing their issues).

Again, if Sony or Nintendo bought Sega out, all they'd be getting is semi-weak development teams. But if MS bought them, they'd be getting a new lease on life in Japan - and it would certainly make Japan competitive for Microsoft. Would that be worth $1b? I think so: Microsoft would then have a very competent team of 1st party developers, and own major franchises. MS has had to nearly build up every IP on their own, despite owning Rare and such. MS needs more "bulk" in their 1st party studios. And a buyout of a major Japanese company is just the ticket, IMO.......Expecially a failing company.



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i truly doubt it.



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mrstickball said:
I think people forget that during the mid-90s, Sega was indeed one of the most versatile, and best software developers in the world - Virtua Fighter, Phantasy Star, Nights, Sonic, Crazy Taxi just to name a few. Sega is still a huge name in the arcade business (which is causing their issues).

Again, if Sony or Nintendo bought Sega out, all they'd be getting is semi-weak development teams. But if MS bought them, they'd be getting a new lease on life in Japan - and it would certainly make Japan competitive for Microsoft. Would that be worth $1b? I think so: Microsoft would then have a very competent team of 1st party developers, and own major franchises. MS has had to nearly build up every IP on their own, despite owning Rare and such. MS needs more "bulk" in their 1st party studios. And a buyout of a major Japanese company is just the ticket, IMO.......Expecially a failing company.

 Not really, if Sony bought out Sega it could negatively effect Nintendo's VC service because they would no longer be able to support Sega games on the service.



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yeah, thought about it a little while ago... i think it's more likely nintendo acquires a "strategic stake" in Sega than buying it outright.

nintendo doesn't want its hands on Sega's arcade or other businesses. and it's a mess for sega to spin off or sell off those businesses that nintendo doesn't want.



the Wii is an epidemic.

i don't think Sega is worth Microsofts money. Yes, they have great line up of IP's, but lately it seems that Sega don't know how to use them. How many people would play exclusive Sonic game, if it would be at most an average title. Virtua Fighter franchise on its own is not worth of buying entire Sega company.

if Nintendo would bought them... that may be a different story.
Under the supervision of big N (Miyamoto), Sega could get back on top, and.... for those that accuse nintendo that there's little 3rd party games on Wii, Iwata could just raise a middle finger and say "screw 3rd party's, we can do it on our own". Sega has all game genres that are neglected by Nintendo.

but the best solution would be if Sega could stand on its own (hire better lead designers), and make games on all the platforms.



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they could but i dont think they will



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mrstickball said:
I think people forget that during the mid-90s, Sega was indeed one of the most versatile, and best software developers in the world - Virtua Fighter, Phantasy Star, Nights, Sonic, Crazy Taxi just to name a few. Sega is still a huge name in the arcade business (which is causing their issues).

Again, if Sony or Nintendo bought Sega out, all they'd be getting is semi-weak development teams. But if MS bought them, they'd be getting a new lease on life in Japan - and it would certainly make Japan competitive for Microsoft. Would that be worth $1b? I think so: Microsoft would then have a very competent team of 1st party developers, and own major franchises. MS has had to nearly build up every IP on their own, despite owning Rare and such. MS needs more "bulk" in their 1st party studios. And a buyout of a major Japanese company is just the ticket, IMO.......Expecially a failing company.

One thing to consider is the difference between how the development talent would see changes made by Microsoft or Nintendo ... Even if both companies tried to make the exact same changes, Nintendo would be seen as the experts that has the visionaries (Iwata and Miyamoto) while Microsoft would be seen as the outsiders who don't understand the market.

I don't disagree that it makes more sense for Microsoft to buy Sega, and it makes little (or no) sense for Nintendo to buy Sega, but I suspect that Nintendo would get far more out of Sega than Microsoft would.



What people don´t seem to understand that in order to spend 1 billion on the acquisition of a company, the shareholders want to see that money back wihin a reasonable amount of time. It´s not like: Hey Sega is cheap let´s buy, cause then Sonic will be exclusive.

I doubt that the SEGA franchises, because that´s their main asset, will give enough Return On Investment for either of the companies.

For Microsoft it would be even less likely than for Nintendo. Their core business isn´t gaming but operating systems and internet. Also: the demographic of the Xbox not very compatible with Sega´s main franchises. Besides that, Sega will be worth a lot less once it´s unable to divest investments over different platforms. Sega in Microsofts hands can´t make games for Sony and Nintendo platforms anymore, meaning less revenue. How can Microsoft earn a billion on Sega franchise when the only platform will be 360?

For Nintendo this is less of an issue, since they own two platforms and the demographic for Sega´s biggest franchise suits better, but still, Nintendo doesn´t NEED Sega franchises. Yakuza, Phantasy Star and Skies of Arcadia are nice franchises, but you won´t earn a billion of those.



BengaBenga said:
What people don´t seem to understand that in order to spend 1 billion on the acquisition of a company, the shareholders want to see that money back wihin a reasonable amount of time. It´s not like: Hey Sega is cheap let´s buy, cause then Sonic will be exclusive.

I doubt that the SEGA franchises, because that´s their main asset, will give enough Return On Investment for either of the companies.

For Microsoft it would be even less likely than for Nintendo. Their core business isn´t gaming but operating systems and internet. Also: the demographic of the Xbox not very compatible with Sega´s main franchises. Besides that, Sega will be worth a lot less once it´s unable to divest investments over different platforms. Sega in Microsofts hands can´t make games for Sony and Nintendo platforms anymore, meaning less revenue. How can Microsoft earn a billion on Sega franchise when the only platform will be 360?

For Nintendo this is less of an issue, since they own two platforms and the demographic for Sega´s biggest franchise suits better, but still, Nintendo doesn´t NEED Sega franchises. Yakuza, Phantasy Star and Skies of Arcadia are nice franchises, but you won´t earn a billion of those.


With the way MS has been letting games go to the DS I think they would still have a good chance at getting Sega profitable.



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For the video game business: It would be the best MS buys them because they need more ground in Asia..


For a gamer: I would prefer Sony or Nintendo..