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Want to succeed in Japan, Microsoft? Buy SEGA

Thu Feb 9, 2006 7:22 AM EST
entertainment, business, sony, microsoft, stock-market, trading, gaming, shares, xbox-360, sega, ps3, playstation
By Wrestlevania
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...and quickly. Whilst Sony continue to struggle in bringing PS3 to market, I believe a deal such as this could help significantly drive sales of the Xbox 360 in Japan.

Microsoft would inherit an awful lot of valuable IP, both long-term franchises as well as emerging properties. Of course the most noticeable impact would be for gamers on non-Microsoft platforms. On the positive side I think it would greatly contribute to Sega's equilibrium, giving them a single console to focus their efforts on once more. Sega have made some questionable releases in recent months, and I can't help feeling that they're trying to cast as wide a net as possible to help the company stay 'in the black.' But that's just my personal interpretation of why Sega would release such lacklustre titles.

So there you have it. Just an idle thought really, but the possibilities certainly are interesting. What with Sega kicking around the business markets on and off since they ditched their console business, it's not entirely unfeasible either.

What do you think? Could buying Sega really change Microsoft's fortunes in the Japanese market? Or is it already a case of "too little, too late" for the Xbox franchise in the Far East?

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kaya

I agree that Microsoft should buy Sega. However as it hasn't happened yet I and don't think it will unless the XBOX360 is a huge failure in Japan. Microsoft worked closely with Sega on the Dreamcast going so far as having the Windows logo on the machine. I believe that was the perfect chance for Microsoft to buy Sega. My personal prediction is that Saga and Nintendo will merge following slow sales of the Revolution compared to the other consoles. Wouldn't it be strange having a game called "Sonic v Mario"?!

    Reply#1 - Thu Feb 9, 2006 9:10 AM EST
    Garys Basement

    I think it's a great idea. I hope Microsoft does do it, even though I think they have probably already considered doing it (guess they just didn't think it was worth it?).

    Sega has been rather successful since Dreamcast fell through. All the newer Sonic games have been ripped apart by the media, but sold well.

    I'm an Xbox 360 guy, but I don't think Revolution is going to sell poorly, so don't really expect a Nintendo-Sega merge. Even though a Super Smash Bros. with Sonic and other Sega characters would be awesome.

      Reply#2 - Thu Feb 9, 2006 1:02 PM EST
      SamuraiChamploo

      Much more important (and cheaper) is to make sure that japanese releases of US-developed games are properly localized. This is by far the biggest argument against the Xbox360 that Japanese consumers have brought up. The only ones who seem to put effort into their Japanese releases are the Japanese developers themselves. I have seen it said many times that releases of games that are popular in the west like Splinter Cell and Halo are transferred over to japan with little to no translation.

      Perhaps Microsoft has already built up too much of a negative image in Japan with its original Xbox, but it should still put effort into proper localization if the Japanese are to take the Xbox360 seriously.

      Note: I have had no first hand experience of Japanese versions of Xbox or Xbox360 games. I am wholly going upon what I have read on various Japanese blogs and videogame websites.

        Reply#3 - Thu Feb 9, 2006 1:17 PM EST
        Matthew Paliafito

        Peter Moore, lead marketing director for the Xbox 360, had the same job for the dreamcast so there are definitely connections between the two corporations. At one time I believe I heard that Sega's supposed worth was somewhere around 2-3 billion dollars, which is a sizeable chunk of change, even for Microsoft. However, there are very strong rumors floating around dealing with downloadable Dreamcast games over XBLA, which would be a huge step in the right direction.

        Contrary to what some people think, Sega is still a great company, they just couldn't afford to market the Dreamcast to the extent that it had to be to compete with the PS2. If Microsoft could figure out a way to make this work, this could potentially be the biggest shakeup in the history of the videogame industry.

        I'm also pretty sure that Microsoft has considered this move in the past, but sometime this year would be the time to do it. A buyout of Sega, or even a major form of co-operation would be a great way for Microsoft to counter the Playstation 3 hype machine that's going to start moving in full force within the next month or two.

          Reply#4 - Thu Feb 9, 2006 1:18 PM EST
          Matthew Paliafito

          SamuraiChamploo,

          Going by what you've displayed in your previous post, you are definitely a gamer and hopefully you realize that the console with the best software is usually going to win out. Especially since Microsoft isn't going to fun into the financial issues that the Sega ran into with the Dreamcast. If Microsoft can release quite a few high quality games that peak the interest of the Japanese consumer I think that they'll forgive and forget a little bit. It's all about the games.

            Reply#5 - Thu Feb 9, 2006 1:21 PM EST
            JackFace

            And what benefit would it be for Nintendo to merge with Sega? Or even buy them outright? They have their divisions already for different software development, hardware development, etc. and incorporating another company like Sega would just be foolish. Garys Basement is right, Revolution won't perform poorly, for the two main reasons of the quirky innovation of it, and because of the exclusive titles, however, if it did, there are many other components in the business structure that is Nintendo for them to fall back on. The only real problem would be a massive downturn in the video game market in general, since they don't have the same branching structure of Microsoft or Sony (with consumer electronics, other software, etc.).

              Reply#6 - Thu Feb 9, 2006 1:40 PM EST
              Matthew Paliafito

              Your exactly right JackFace. I don't even think that Nintendo has the financial backend to buyout Sega.

                Reply#7 - Thu Feb 9, 2006 2:14 PM EST
                Noah BradleyDeleted
                nothingreal

                I like where your head is at with the acquisition, but I'm not sure that Sega is the right target for Microsoft - or even Nintendo for that matter.

                I think that Sega's value as a 'gaming' brand is diminishing much like Atari's has. There are still valuable assets - basically Sonic - but it's unlikely that the sonic franchise would in itself warrant an acquisition.

                I think that MS should dedicated a sizable amount of cash over the next fiscal year towards acquisions - I'm sure that Sony will. My advice is that Microsoft might be wise to jump in ahead of Bono and pick up Take Two. Owning the GTA franchise at this point is infinitely more valuable to MS' core consumer than is the Sonic franchise.

                  Reply#9 - Thu Feb 9, 2006 6:47 PM EST
                  Wrestlevania

                  My advice is that Microsoft might be wise to jump in ahead of Bono and pick up Take Two. Owning the GTA franchise at this point is infinitely more valuable to MS' core consumer than is the Sonic franchise.
                  -nothingreal

                  Likewise I can appreciate where you're coming from, but it's not their core (US, UK) markets that Microsoft need to concentrate on with the Xbox 360; they've already had great success in the States and the UK—the chronic shortages are testament to that alone. It's Japan where Microsoft need to significantly grow their market share if they want to make substantially larger amounts of money with 360. And whilst it's a valid point you make about Sonic being just about the only franchise that Microsoft's core market might care about, Outrun, Sega Rally, Virtua Fighter, House of the Dead and Shen Mue - amongst many other classic Sega properties - are still extremely popular in Japan.

                    Reply#10 - Thu Feb 9, 2006 8:41 PM EST
                    nothingreal

                    I agree actually - though I think that the battle for the US is far from over - and incidentally more important.

                    But to your point - if the question is soley about gaining a bit more marketshare for the console itself in Japan, Sega might be the best option.

                      Reply#11 - Thu Feb 9, 2006 11:00 PM EST
                      sunnycuts

                      Someone just give us shenmue 3 . I dont care if its on the dreamcast or the 360.

                        Reply#12 - Thu Feb 9, 2006 11:18 PM EST
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