Microsoft poised to buy SEGA?

Are you an avid Xbox 360 gamer? If so, chances are you are also a member of the 'old' SEGA faithful.

It's no secret that when SEGA fell out of the hardware market, most of the devout fans of 'home of the hedgehog' pledged allegiance to the Xbox brand. In part due to the early launch titles for the original Xbox - the classics 'Panzer Dragoon Orta' and 'Jet Grind Radio'. Both niche titles brought the SEGA faithful over to Microsoft's house for a party.

SEGA Sammy shares have taken a battering over the last two years, dropping from a high of 2050,40yn down to 1020,00yn this week - that effectively halves the market value of the group making it an ideal takeover target.

[Silogon]

take them. You can have them and all their future bombs. Old sega is near and dear but the people who made that sega have all moved on and as we've seen in films, (Batman, Dawn of the Dead, Damion, The omen, The fog, Black christmas, hills have eyes, The hulk, the punisher, Day of the dead,Texas chain saw massacre, Halloween, and the list goes on and on)

So, just because you have the rites to make an intellectual property doesn't mean it's going to be the same or as good.

[Bleem360]

I don't agree - sorry.

Whilst I'm prepared to admit some of the output has lost it's sheen, Sonic being a prime example - there are still a bunch of IP's that do well. Look at Yakuza for the PS3 for example - Virtua Fighter 5 and lets not forget the much wanted Shenmue III.

[Pain]

.

[paul_war]

SEGA's titles are very mixed:

Good - Condemned 2

Bad - Iron Man

Ugly - Viking

However this will be a hugh plus for Microsoft, they still produce a lot of titles.

[BeaArthur]

I'm going to have to disagree with you there on Condemned 2. Condemned was great and Condemned 2 started out great, but half way through it transitioned from psychological thriller with a unique combat system to a weird sci-fi adventure that was hard to follow and the combat turned into a below average FPS.

[plenty a tool]

i would imagine there's alot of sega stuff which is extremly popular over there, and they've got a huge back catalogue which could tapped, remade and updated.

a good move for microsoft imo.

[american_ninja]

Not to burst anyone's bubble, but this rumor looks highly familiar...
First off, 80% of that article is just pure opinion.

An odd one at that, Sega games haven't sold as much on Xbox and Xbox 360 as they did on PS3, PS2 and Wii.

Second, Sega dropped the hardware market nearly 8 years ago, why does the article feel the need to write that again?

Also, how could this be Microsoft's desperate move?

Another mistake, Sega is not Sega Sammy, Sega Sammy is Sega's parent company, buying Sega Sammy would mean buying an entire conglomorate of game companies, Internet service providers, music studios, movie studios, animation studios, arcade facilities.

On a whole it would likely cost more to buy the entire Sega Sammy conglomrate then to just buy Yahoo!, so I know this article is nothing more then wishfull thinking on behalf of a random fanboy.

And wanna know the real irony here? Sega games in general have consistenly sold more then Microsoft Games Studio's titles.

[Fallen_Angel]

Sega has a lot of really great IP's the problem is they either been making crappy new ip's and screwing up the ones they have. While a lot of really good IP's they have they are doing nothing with . Where's panzer Dragoon saga 2 , shenmue 3, skies of arcadia 2 or how about a crazy taxi 3 ?

[tplarkin7]

MS needs a Mario killer. Sonic has done it before on Genesis. Perhaps Sonic could do it again. This also falls in line with MS wanting to appeal to younger kids and families.

[BeaArthur]

tplarkin7...to be fair Sonic never killed anything. Sega only went through about 1 and a half generations (Dreamcast died too quickly to consider that a generation) before it died off. Sonic is a classic character, but that series is in desperate need of renevation and in it's current state has no chance of knocking off Mario.

[Madmax1281980]

sorry but condemned 1+2 arent developed by sega it was monolith sega is the publisher. and fallenangel there already was a crazy taxi 3 on the original xbox.

[Doppy]

Honestly I think this is a good move for Microsoft. They'll have a casual mascot (Sonic), and one for the hardcore (Master Chief). Not to mention a huge library of old games to re-release, or re-make. Nintendo and Sony should be doing the same thing and buy some of these games studios.

Microsoft- Epic, Sega, Eidos, Team Ninja

Sony- Square, Capcom, Konami, Namco

Nintendo- Sega, Grasshopper

[KillaManiac]

Actually ^^^^ Namco and Capcom have UNFORTUNATELY been giving more love to Xbox 360. Same goes for Square Enix b/c they must of gotten a Big O'l check in the mail recently.

At least PS3 still have the RPG of Gods FFXIII and FFXIIIVersus coming sometime next year (I hope!).

[tplarkin7]

Sonic did defeat Mario when he first came out. It was a time when those that played Mario on NES grew up. The original Sonic the Hedgehog was a big leap in technology. Sega marketed Sonic as faster and cooler than the slow-poke Mario, and it worked.

If MS buys Sega, they would have to be smart with Sonic, but Sonic could defeat Mario. It's a great character.

[predator]

if they make shenmue 3 then im all for it

[Cherchez La Ghost]

I don't want to even start thinking about that. Shenmue is a "classic" game. I never seen no other game to duplicate it's style.

[predator]

yeah i know....lets just hope they see sense and make it huh?

[green]

It will be a sound business move for Microsoft to do buy Sega.It will help in boosting the knowledge in their fanbase that they are still committed in delivering more games for the Xbox brand.God knows that they are seriously lacking in 1st party studios compared to Sony.

Yes Sega have lost their way abit but with some substantial cash injected into reproducing their amazing back catalogue of games Shenmue,Sonic,Yakuza,Skies of Arcadia,Panzer Dragoon to name a few, will only help in increasing sales in all territories.

Anyway Sega please just make a Shenmue 3.

[Bleem360]

Totally agree - Shenmue III would sell bucket loads. It was a fantastic Dreamcast title if perhaps a little ahead of it's time.

But please - No more forklift jobs!

[anh_duong]

sounds like a good idea but for an M&A annoucement it seems strange for it to be delayed until E3. I think you should check sega share price in the last few days before for an insider trading. an annoucement like this should be partially leaked.

edit: sega share price down 25% in last few weeks whilst the sector has risen makes it seem like this theory is interesting but so far highly speculative

[RiseOfMonster]

I cannot believe you named all those SEGA games and forgot Jet Set Radio. Segas best franchise (IMO)

[green]

LOL.cant believe i forgot about Jet set Radio.That was one amazing game.

One thing with Sony fanboys is that when they bring up lists of games coming to the PS3 , most have not even been confirmed to be in development but they list them anyway because SOny own the studio so it's not impossible to believe that Sony is working on the game secretly.

That is the kind of bragging rights that Microsoft need to empower their fanbase with.Buying Sega or other studios will do that.3rd parties supports everyone now so it all lies on the 1st party studios to set console A apart from console B.

[tudors]

not all games can be complex, my kids just like the ability to fly in a virtual world in a metal suit.

[fishd]

They are supportung sony pretty well as a 3rd party publisher with yakuza3,valkyre of battlefield(?),etc.but imo merging with nintendo seems more likely.

[whoelse]

I don't think it will happen but it would be good for Microsoft. Remember they also have links to Nintendo like the Olympics game.

[highdro]

i dont think this is a smart move,...we all know how 70% of sega games that come out now are, .. this is a desprate move because they know sega brings out loads of games every time(some good,some bad,some disgusting) the are hoping to make the good one exlusive and the rest multiplat,...haha, well i aint gonna front if the bring out sonic exlusive for the 360 with proper next gen visual i would not mind playing it cuz ive liked the sony games since i was a kid.

[BeaArthur]

Well this is what Microsoft does, they throw money at stuff, but it has worked out for them so far so who knows.

[green]

So can you explain to me how Sony aquired so many 1st party studios if not buy purchasing them with money?was it trade by batter or sexual favours according to Jenzo.lol

[RussDeBuss]

Former top bod at sony studios Phil Harrisson left sony to go to sega, and then micoshaft buy sega leaving him effectivly working for them. :)

edit: Is he, ooops. Thanks for pointing that out. Made myself look silly saying that, never mind :)

[green]

Phill Harrisson is at Atari not Sega.

[4cough]

Please, Pleeeeeeeeese give me shenmue 3.

[t-0_ot-]

What game system where the Shenmue games on? I've only played the first game, but for some reason I can't remember what system it was on.. I'm wanting to think it was the Dreamcast though, but I don't think that was it..?

[Bleem360]

Shenmue was on the Dreamcast, Shenmue II was on (Dreamcast?), and Xbox

[micky_21_uk]

It would be in sega's best intrest to let this happen. Just let it be like Rare are now and make classic titles for xbox 360. Lets get sega back in the days of Shenmue, Nights, Burning Rangers etc etc and tink what could happen with XBLA with all back catalogue of master system to mega drive and even saturn and dreamcast. It has happened already with rez and sonic but it could be so much more.

[Shadow Flare]

2 failures don't make a right

[PirateThom]

Not a chance, they make all their money from Wii games.

[thekingofMA]

if this did happen, i think Microsoft would let them still develop games for the wii , just not the ps3

because they're bringing viva pinata to a rival's machine, even if it is a handheld

[princejb134]

i could care less
in my eyes sega is dying out

[xboxftw]

Yeah and you dont care another less dev/pub for sony psturd3

[crck]

Sega Sammy's market cap is still around $2.7 Billion. Which means MS would probably have to offer 3 billion plus. If MS hasn't even made an offer to Buy Take Two for around 2 billion I doubt they would spend that kind of money on Sega. What would MS do with a Pichiko machine business anyway? Which is Sammy main business. If MS were gonna buy Sega they would have done it before the merger in 2k4.

[Merritt]

I'm a old-school Sega fan, and I'm a 360 fan. I don't see this as being a smart move. The only titles Sega has released that have been worthwhile this gen have been VF:5 and Condenmed. Why buy a studio for two games?

Segas been really lacking since the AM2 days, they've been on a downward spiral for eight years after the loss of the Dreamcast, it would be a very stupid, albeit desperate move for MS, so maybe this rumour has some legs.

(I didn't include Condemened 2, as it was nowhere near the first. It started out good then ended up being some whacked out game. It's like it was two games made into one. Very bad, halfway through it turned to crap.)

[Ashta]

Wow, you would think that with all of the anti-trust and anti-competition lawsuits that Microsoft has right now that they wouldn't want to jump in to another one.

Considering if they DID (highly unlikely though) buy out Sega that would be an absolutely devastating hit to the gaming industry, but then again since when has Microsoft cared about destroying an industry. You know their motto "If you cant beat the competition on the battlefield, just buy out the battlefield and cancel the war"

Edit: @Merritt - Take the Yahoo buyout that Microsoft attempted a while back? The reason why they wanted to buyout Yahoo was not to "serve in the best interests of the Yahoo shareholders" but to gain more traffic for their failing "live" service. Yahoo held a larger market share than Microsoft did so Microsoft wanted a stepping stone to try and beat up against Google. That stone was Yahoo, but luckily Yahoo declined and kept Microsoft honest to the system and forced them to continue to compete without buying their way up the ladder.

As far as I'm concerned IE need to continually be beaten down by the upcoming Firefox. Microsoft forced deals with PC manufacturers to only include Internet Explorer on the systems so that their browser would seem "exclusive" and would create a lack of competition in the Pc market between browsers. Thats why Mozilla has had to fight tooth and nail to gain what they have because Microsoft had, once again, thrown money around to try and close off the battlefield of competition so that it didn't have to worry about other businesses trying to gain market share.

As far as the Zune was concerned Microsoft didn't even NEED an mp3 player. The only thing that travesty amounted to was Microsoft trying to gain entrance in to a market because they felt that a rival company was trying to steal revenue from them via the mp3 boom craze. Why do you think they created the Xbox? Only to place a barrier between Nintendo and Sony so that neither could continue the high market shares that they enjoyed.

The only difference? Microsoft couldn't (and still cant) compete on the honest level. They have had to resort to buying out 3rd party developers completely so that the competing systems (nintendo and SCE) wouldn't be able to reap the benefits of the system. Now, i'm not saying there is anything wrong with exclusives because those software titles are great at spurring hardware sales.

HOWEVER!!!!!~

A 3rd-party developer should not lose its autonomy and independance just to score exclusive titles. If a developer wants to remain loyal to a console then it should do so by its own accord and not because some conglomerates greenbacks say so.

Take Insomniac for example: They are technically a 3rd-party developer who could, if they so wished, switch to a multi-platform format and create games for all systems. However, because they prefer the Sony brand and have a long lasting business relationship with Sony they have -decided- to stay exclusive to the console. Why can't Sega be allowed to developer for whoever they wish? Why does Microsoft have to force them to only work for them?

Is microsoft afraid of competition? Of course they are, and the simple fact is that they are afraid of competition because, in the end, most of their products get shunned and people want to go elsewhere. So, with their vastly huge amounts of money to try to control the market via buyouts and back-room contracts instead of letting the capitalist free-market (which is consumer driven) decide who wins the battles between rival companies.

P.S. - Yes, I'm aware that Sony purchased Evolution Studios which made Motorstorm and even then I never understood why they did it.

[Merritt]

The comments about MS are truthful to an extent but...lately MS has been on the rebound trying to get it back together, so I don't know where the comments stem from.

Firefox > Explorer
OS X and Linux > Vista
iPod > Zune
Live > PSN
Google/Yahoo > MSN
So I'm not sure where the comment about MS buying out the war comes from...enlighten me please. The only thing MS has going on truthfully is Live.

[Bladestar]

wow... it seems that the rules only apply to microsoft... not long were you sony lovers bragging about the bast number of 1st party studios that Sony have acquire and how microsoft barely have any... and lost others.... and now that here are rumors that they may acquire 1.. you people are having a stroke and brining all the conspiracy theories and dooms day for the game industry....

[PirateThom]

Yeah, but be serious.

Microsoft acquire Rare who have yet to produce a good 360 game and if they acquire Sega they're getting franchises, but no talent if Sega's recent efforts are anything to go by.

It reeks of desperation "omg, we have t3h Sonix", when was the last good Sonic game? Sonic 3 and Knuckles? Sonic Adventure? It has been for a while anyway. If the parallels between Microsoft and Sega weren't obvious enough, this would cement it.

[JD_Shadow]

...you never fail to make something into a MS vs. Sony affair, do you?

You also seem to always fail to see that the fanboy rants you bring to each story is not the same thing as what is being argued.

Either that or you really had nothing else to defend MS with.

[OminaeYu]

Microsoft gave the xbox division 2 billon to help expand the games sector so at sega's current market state that more than covers it so its not impossible for it to happen. plus they'd gain a massive depth in ip from casual through to hardcore. the reason why sega makes so much crap games is cause there being cheap in development cutting corners etc.
Sega + Microsoft (money man) = Happy Days again

[Legion]

Huge Sega fan that I am, I have been disappointed with their current work. This could do nothing but help Sega, and Microsoft would gain titles that rival Nintendo on the fan draw and internet wish list.

The possibility of the video below ever coming to a Next Generation console would be simply a dream!

http://vision.ameba.jp/watc...

[Vespertine]

I think this would be an excellent idea for Microsoft. I'm a huge Sega fan, so of course I would think that.

[Baka-akaB]

I think Sega would be a more likely target for Square Enix . They've beeen considering buying companies , and they're on a warpath lately about selling more to western audiences .
Not to mention that when it comes to their main bread and butter , jrpgs , Sega got a lot of IP sitting there Square would sure love to sell on next gen .

[Imallvol7]

I disagree with this move. I have hated every sega game this generation except fof Virtua Fighter. Not worth the purchase MS. You should have spent this money and the money to get rare on some good developers.

Well, rare did seem like a good idea at the time.

[Superfragilistic]

Microsoft has gone on the record several times since their recent showcase saying they no longer beleive purchasing studios is the most effective way to use their money and have taken particular exception to EA's $1bn purchase of Bioware and Pandemic, which they felt was ridiculously overpriced.

In fact I'm sure Shane Kim made a comment that he could make 20 Halo 3's for that price and still have money left over! lol

It's not happening unless Sega comes dirt cheap and with significant areas of unique knowledge (motion titles?). :)

[KillaManiac]

Ya...Microsoft is too busy throwing Big Checks at Rockstar for 3/4 a year later DLC to purchase other game studios.

[killedinaction9]

Goddamn i miss the Dreamcast.

[RAM MAGNUMS]

I dont know If Im happy for sega or ashamed of them for this idea?
Its obvious Microsoft does not have a original idea anywhere so either let sega run the show or get out of the business because the xbox 360 is dead & stinkin

[The gaming GOD]

First off, with all the resources out there, the FIRST you hear of this is from a blog? Come on man.

Secondly, the story doesn't even have a source from where this rumor is coming from.

Third, the blogger doesn't even have his facts straight since he says Panzer Dragoon Orta and Jet Grind Radio were launch titles. Panzer Dragoon was NOT a launch title. And Jet SET Radio Future (the sequel to jet grind radio) was the early launch title.

[Jdoki]

MS would be better off creating a strategic partnership with Sega... In other words throw a load of money at Sega Sammy to ensure a couple of exclusives.

Otherwise they may find themselves in another Rare situation where they pay a shed load of money and have to wait years for the company to produce anything AAA (or anything at all really)!

[OminaeYu]

sega have no money to fund most of their developments so they cut corners to save money. many people thought their merger with sammy would give them a bit more financial muscle but sammy just bought them for the brand name to further their own stuff (slot machines) sega needs this buyout they'd be able to focus on making quality games with out having to compromise their developments plus they would once again be tied to one machine.

[t-0_ot-]

It would be nice for MicroSoft.. Sega makes some great games, so in that aspect it would help MS. But, I think the biggest help for MS would be that they also need some more First Party Developers to help compete against Sony's..

[Kareshi_X]

Jet set Grind radio , Shenmu ,House of the dead ,sonic , Power Stone ,Sky of arcadia All of those games could fit on the 360 Now if only SEGA could start working on them jems for a near future

[NextGen24Gamer]

Its a win win for both Microsoft and Sega. Sega would have money to fund their game developement, and Microsoft would add a bunch of Great games to their library of 360 exclusives to be and draw all the Sega fans from children to adults. I believe if this is true it would improve both Sega and Microsofts position in the market.

[TrenchaunT]

I'm no fan of SEGA, but if MS bought it I do think that'd be a plus. One person above argues against it saying that SEGA games have sold better on PS3. Well, that's exactly why MS would want to buy SEGA, then--making such games exclusive would give MS a good hold on the SEGA fanbase, which I hear is still significant, although even back in the day I didn't like the Genesis...

[Citizen Cook]

to win the hearts and minds of gamers everywhere, including Japan:

SHENMUE!

Xbox already has Shenmue II, I'd love to see a re-release of Shenmue 1 and 2 in a pack for 360.

Ooh, and SHENMUE III, please god, let them make Shenmue III!

HA HA HA HA!

[SkyGamer]

I'd like to see the puddin where insomniac is seperate from sony. I call utter bs on that one. I was only going to comment on how it would be cool if they make a Shenmue 3 or better yet, Skies of Arcadia 2, loved the GC version!, but too many sony trolls infesting this site.

[bama]

I see a SEGA buyout coming. And RARE being sold back to Nintendo. It really would help MS allot. Especially in Japan.

[Baka-akaB]

I dont see why nintendo would want Rare back ...
They havent done anything noteworthy despite the hype , since they left nintendo ... and nintendo can easily do without them .

[BlackIceJoe]

I for one would love to see this. Sega has some of the best IPs out there and they are not being used and if MS bought them out I think it would help MS out with Japan. Plus I believe MS would be able to help Sega get more game studios and so more of there great games would be able to come out. Plus another thing too if MS did buy out Sega then many past games from Genesis, CD, 32x, Saturn and Dreamcast could be downloaded off of Xbox Live. Also if Sega only makes games for the PC and 360 it could help development a lot. So if this is true it would be a win win for both companies.

[DrakenSilverwing]

Ya know what would be funny.. Sega gets bought out.. microsoft then has the franchises from sega.. then the ppl who made those games quit and goto different companies only to leave microsoft high and dry.. and other companies just get more talent..

Its not goin to happen anyways.. microsoft wont buy sega..

why wont microsoft just use all that money they have an hire there own talent and get more studios for themselves?

[TheDeadMetalhead]

Sega's been sucking for the past 10 years, anyway!

[juuken]

While they have the cash to do it, let's just see if this is true.

[SHaMROCK_73]

...when video game hardware has different names in different regions. Nintendo Entertainment System was known as Nintendo Famicon in Japan. Sega Genesis was known as Sega Mega-Drive in Japan. This practise has died out, but if I were Microsoft I would realize that the American name "Microsoft" is never gonna be a big seller in the land of the rising sun. I would purchase a formerly well respected Japanese console maker who has been out of the business long enough for the public to forget its mistakes of the past and long enough for the Japanese gaming world to wish this company would put out a new console. Then in 2012 as the Xbox 720 hits North American store shelves so does the Sega Mega 720 launch in Japan complete with a bunch of quirky Sega first party titles that Japanese people eat up with a spoon. Epic win!

[american_ninja]

This doesn't have anything to do with this article, not completely.
But how does this article get so much attention?

I see Sega haters all over the place, but when a baseless rumor such as this comes along everybody is thinking about the glorious Sega of yesteryear...

Yet when good Sega news, especially in this generation, does appear, it's pretty much buried, but if the words "losses" and "Sega" appear in the same sentence, everybody goes beserk.

Even more suprising is also how people have also become very patronizing, branding every single Sega game this generation as a failure... not matter how much this or that game sold.

That little average on MetaCritic or GameRankings is all the proof they need to dish out the good ol' fashion Sega hate-mongering.

OK, enough ramblings for me today...

[Irishrocket69]

This would be awesome, but I wonder how it would affect the Wii download channel, I have bought at least twelve titles so far!

[justonj]

If Microsoft can acquire Sega from the parent company Sega Sammy, then this is a big step forward for Microsoft.

Microsoft owning Sega means opening a new dimension of gaming on the Xbox 360. This acquisition opens up a huge library of historic and highly respected gaming titles that will become exclusive to Microsoft.

Microsoft needs these important and exclusive IP’s to compete with Nintendo’s and Sony’s vast number of gaming exclusives, and this buy helps Microsoft gain the number of in-house game development groups (1st Party Support) needed to compete against Sony’s and Nintendo’s.

Why buying out Sega Sammy is really needed?

The Xbox 360 must become bigger in Japan, and Europe to compete with Sony and Nintendo on a global level. The 360 must have higher international user base numbers, and more paying members on LIVE. The 360 is doing well in the United States, but it should be doing way better in Japan and needs to compete more aggressively against the PS3 in Europe.

Why winning support in Japan’s market is significant to the 360’s future?

Japan has many important game development groups that have become essential to the gaming industry, and most game companies in Japan tend to develop titles for a console with a significant impact on the Japanese market. The Xbox 360 has to do better in Japan in order to gain the support of Japanese developers over Nintendo and Sony in the present and future.

Measures the 360 must take in order to win Japan’s support:

To win over the Japanese people, the Xbox 360 must take drastic measures to reinvent its self. A new design for the 360 will need to be released in Japan, and should be called the "Sega 360."

The Sega 360 should come standard with at least a 60GB HDD, HDMI, and 65nm processor. The new machine should be smaller (if possible), have 4 USB ports, standard Xbox 360 memory slots and multiple media memory slots (hopefully), and built-in Wi-Fi.

The console should have a single SKU and retail around $200 to $250.00 US, and hopefully launch in Japan around November 2008 (no later than April 2009). The risk with losing money in the present will benefit the 360 in the long run. Microsoft has bent over backwards in the past for Japan; this move will guarantee Japan’s love and support.

What buying Sega means for every 360 owner?

The Xbox 360 is capable of emulating all of Sega’s consoles, and thus making it backwards compatible with all titles on Sega’s consoles.

For example, the Dreamcast used a Windows CE OS and I'm pretty sure that the Dreamcast discs could run on the 360 with the help from some gifted programmers. Hopefully, Microsoft would provide separately sold USB converters for old Sega controllers to plug into the 360 to deliver the complete Sega experience to the 360 owner.

LIVE's library of downloadable games will benefit immensely - Xbox Original games are around 3+GB’s a disc, Dreamcast games are at most 1GB a disc, and Saturn games are at most 740MB a disc.

Think about it...
The Xbox 360 will become known as the complete gaming machine for everyone, representing a full circle in Microsoft’s and Sega’s gaming history.

Why Microsoft should ultimately buyout Sega from Sega Sammy?

The buyout is a great deal that will immensely help Microsoft and the Xbox 360. No one will see this acquisition coming; it will blow everyone’s socks off around the world, and most importantly give people a reinvested interest in the 360.

This move would also allow Sega to reinvent its self, which is much needed (I don't like the current direction of the company, imo).

If Electronic Arts can try to buyout Take-Two Interactive Software, I know Microsoft can buyout Sega from Sega Sammy if they wanted too.

[Legion]

Sorry, though you are correct that this merger would be beneficial to both sides. Microsoft does not need a strong showing in Japan.

In the past it has been a strong market and needed to be stroked to get the Japanese talent to start working on their console. That was when Japan cared more about their own country in gaming when in this generation they have grown a bit more and have learned they can design games for America and Europe audiances to make the most profit.

To add Sega to their name would only water down their brand. To add Sega as a development group would not.

People here are talking about how the last few years of Sega have been less then spectacular, as have I. But the important thing to remember in this possible merger would be the gaining of intelectual property.

Remakes or reimaginations of original titles with current generation system specs would be a huge boon.

And lastly the securing of exclusive content on such well known gaming names as the Panzer Series, Arcadia,,, and even Sonic... would be itself the largest benefit that MS could see.

[Gitaroo]

sega has alot of classic IP but ppl got to realize all the talents that used to work there are not with the company anymore, it would jsut be a waste of money to buy them. Good games like Condamned etc are just being published by Sega.

[Legion]

That's the whole point. People change every day. But IP purchase is the important factor here. Current Sega teams have not delved into that pot of wealth and for MS to purchase the IP and bring it back would be the coo.

[alster23]

doesnt really make sense. sega has as of late has been helping sony alot with exclusives like yakuza 3 and valkyria and maybe even skies of arcadia 2

[Dark General]

I'm not certain but didn't SEGA just acquire Platinum Games (former clover)? If so that would be a really good move for MS to do. Unfortunately my beloved SEGA has fallen off with the games they have put out and i haven't actually brought a game with the words SEGA at the beginning in ages.

[kurnlx]

Make no mistake. If Microsoft could pull this off, it would definitely leave sony trembling in their proverbial boots, and I will tell you why. The only reason why the Playstation is still here now is because of Sony's shady business practices, one's that involve getting exclusivity on everything viable at the time ie.(Tomb Raider, Final Fantasy, MGS, Resident Evil), Sega could not compete with the likes of Sony, and nintendo was already no.1 at the time, Sega was doomed once Sony stepped onto the scene. If Sega had the capitol Sony had, they would still be a console-contender today. Enter Microsoft, If Microsoft can acquire Sega, they can unleash Sega's extensive library- proper onto the Sega faithful and more importantly Japan. Titles like: Shenmue III, Golden Axe, Sonic the Hedgehog, Streets of Rage, Phantasy Star, Eternal Champions, Panzer Dragoon, Jet Grind Radio, Crazy Taxi, Shining Force, Virtua Fighter, Virtua Tennis, and Shinobi. And those are just some of the older titles.

[DevastationEve]

Sega could see a huge benefit, one being able to work closer with ms gamestudios and having access to better dev resources/funding. I don't think their products would have to become exclusive to 360, but we all know that just may end up being the case.

It's probably a step in the right direction for them, if they want to survive this gen. They could possibly recover and further prosper from such a decision...

...and re emerge as a partner in future Xbox projects.