Microsoft Was Going to Buy SEGA, Says Ex-Exec

30
Lee Bradley

In an attempt to halt PlayStation’s domination of the console market, Microsoft wanted to buy Sega.

That’s according to ex-Microsoft “enforcer” Joachim Kempin, who revealed that Bill Gates eventually nixed the idea as he believed SEGA lacked “the muscle” to take on Sony.

“There were three companies at that point in time, I think this was Sony, SEGA and Nintendo,” said Kempin. “There was always talk maybe we buy SEGA or something like that; that never materialised.”

He went on to say that in place of the deal, Microsoft ended up licensing Windows CE support for SEGA’s Dreamcast console.

“We were actually able to license them what they call Windows CE, the younger brother of Windows, to run on their system and make that their platform.”

“But for Bill [Gates] this wasn’t enough, he didn’t think that SEGA had enough muscle to eventually stop Sony so we did our own Xbox thing,” he continued.

“There were some talks but it never materialised because SEGA was a very different bird. It was always Sony and Nintendo, right? And Nintendo had some financial trouble at that point in time, so Sony came out with the PlayStation and bang! They took off, and everyone else was left behind.”

Earlier this week, Kempin revealed that Microsoft entered the console race because it was feared that the PlayStation may eventually come to threaten Microsoft’s primary interest, the PC.

[via IGN]

Comments
30
  • That would have been interesting.
  • Threaten the PC? Bullshit.
  • @2 if you read the other article they thought the game console predicting 10 to 15 years ago that game consoles would soon become pcs on a way which they are as you can see media streaming and a few other features. Mind you nobody is gonna buy a ps3 or a Xbox and say well that solves me not having a pc
  • In hindsight, just think about how Sega is now just a software company and now both Sony and Microsoft are paying to have all the Genesis and Dreamcast games features in their online stores. Those could have all been XBox exclusives...
  • This was revealed by Bernie Stolar like, a million years ago. Just sayin. Also, I think it's disingenuous of this guy to say "MS" was considering it... Bill Gates was against it, and at the time, Bill Gates was MS. Someone suggested it, I'm sure, but they actually tried to make an offer to buy Nintendo. That was substantial. This wasn't. I would be shocked if there is a single major publisher someone within MS hasn't suggested they buy at some point.
  • I thought this was common gamer knowledge. Heard this years ago, around the launch of the 360. The only difference was that Bill Gates chose not to because Sega had fallen so far, that it was better to start fresh.
  • Shame. I coulda saved years of my life wanting Shenmue III.
  • @5 We both have heard the same. I also was going to mention the part about Nintendo but couldn't remember if I heard it as fact or rumor.
  • Such groundbreaking news.
  • This isn't new knowledge. It was both this, and the original Xbox almost reading Dreamcast discs. Both near misses that would have been interesting to see.
  • You can see where MS got their design for their pads from as well. People saw the Xbox as the Dreamcast's successor anyway .
  • #11 Yup, and DC had Online play. Chu Chu Rocket was fun online. I just wasn't a huge fan of the VMU, other than when playing NFL 2K series local multiplayer. And Metropolis Street Racer was Project Gotham's ancestor, which was a huge Xbox Live hit when it came out.. Or was that #2.. either way. Xbox was the evolution of the Dreamcast for me.
  • I wonder if this would of changed the style and gameplay of Sonic 06 for the better or worst, would of been interesting to see
  • @12 Blimey, forgot how much I miss Project Gotham :/ OT: Would have been nice to have the classic Sega games as exclusive. Though Sega hasn't made much that interests me personally in recent years.
  • My friend was a big Dreamcast follower. Wonder what would've happen if Microsoft had actually helped it more.
  • @5: That makes more sense than what this Kempin clown suggests. Bill Gates sure didn't get where he was by being stupid enough to think that the obviously failing SEGA would be able to stop Sony.
  • Some of my most favorite games from last generation were exclusive Xbox games from Sega. I'm talking about the Otogi series, Panzer Dragoon Orta, Jet Set Radio Future, and GunValkyrie. I would absolutely love to see all of those games receive the HD / achievement treatment.
  • i want him to buy Sega so we can finally have shenmue 1 and 2 hd and shenmue 3
  • All these announcements that come from current and ex Microsoft employees makes me feel as if they are reliving the birth of the xbox, a kind of 'this is your life' making me think this could be the last one.
  • I'm not gonna lie, they'll probably kill sega completely like they did with Rare. Just think about it for a sec.
  • Sony/Nintendo/Microsoft shouldn't buy out sega. I want to be able to play the latest sonic games without some exclusive rights nonsense. Exclusive rights the the main reason why don't have Bayonetta 1 on any nintendo console, why bayonetta 2 is only on nintendo console which will annoy both fans of the 1st, 2nd game.
  • @19 this is your life? How old are you haha. I remember that show
  • Gotta protect your own.
  • Are they commenting about this because they finally feel that they are par with sony? console wise I think xbox is way behind Microsoft is just now adding features at the end of this consoles life that ps3 had at launch
  • It wasn't an executive.. It was an ex enforcement employee...
  • Well do we really want to see Sonic shake hands with Banjo? I don't think so since Sonic want his own business just like Mario got his own business in Nintendo and Ratchet did same in Sony as well Banjo in Microsoft also Mega Man in Capcom. So I think SEGA should refused and agreed with Sonic as he want his business and that is. :) SEGA please just refused Microsoft and have your own business and I knew you all got problem business before but I am sure this year improved for you since Aliens, new Sonic game on way and some XBLAs and also you must be pleased London Olympic Games helped you last year to back up your studio business and Sonic already big thanks. It's important SEGA and Sonic own business. :)
  • News to me.
  • They were right to do so. Buying out Sega would've been like buying out Rare, you'd get ton of hype with little return because the demographic buying those kind of games weren't around on the xbox console. That's why Rare got put into making avatar and kinect games, and why Kinect Sports out profited everything they did on the xbox before hand. Sega did bounce back financially though, and that's thanks in part to really whoring out Sonic. Which is exactly what you would've seen with a MS owned Sega. Only MS would not have felt the pressure to have had such a diverse portfolio.
  • @24 Are you talking about constant system updates ,shoddy online or the account hacking?
  • SEGA? Man, they're like the new Atari. Everyone always goes on about how wonderful they were, but they failed for a reason. This is no ones loss that sega remained independant, cos they'll probably just send out another crappy sonic game or a classic collection. YAAAWN!!
  • You need to register before being able to post comments