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What Will Happen to Sega?

A reader writes "Sega is getting out of hardware altogether. Salon has an interesting bit about the impending doom of Sega and speculation that among the other major players, namely Sony and Nintendo, Microsoft has the most to gain from purchasing the beleaguered Sega."

17 of 151 comments (clear)

  1. Sega denounced this story. . . by kfg · · Score: 5

    two days ago.

    While they do intend to broaden their scope in the software market they ALSO hope to broaden their scope in the hardware market.

    Future generations of SEGA hardware are already in development.

  2. Reviews are meaningless ... by SuperRob · · Score: 5
    I used to work in the game industry. My boss used to always tell me that Reviews meant nothing, especially web reviews. What was important was shelf space, and marketing.

    His point was proven to me when we released our next game to great critical press, great reviews, and strong buyer feedback. Unfortunately, our publisher didn't advertise the game well, and our shelf space was limited. AS a result, we hardly sold any copies of the game.

    My point is, you have to market the hell out of the games, not the console. This is where Sega is faltering. They aren't showing enough of their games where it matters.

    This is EXACTLY what Sega is going to rectify with their new shift to software. Less focus on the console, and more on the games. The console sale will come afterwards ... you have to have SOMETHING to play the game on.

    They aren't abandoning the hardware market, just aggressively pushing the software.

  3. Enough of these rumors by ActMatrix · · Score: 5
    Sega has not officially abandoned the hardware market. It is just shifting its focus to software development. That doesn't mean we'll never see another Sega console. And that doesn't mean Sega is going to develop for Nintendo or any other company's console. IGN has an accurate article on what's going on here.

    That having been said, enough of these damn Sega rumor and Playstation 2 hype articles on /.
    ---

    1. Re:Enough of these rumors by Eccles · · Score: 3

      When people play PS2 games then play dreamcast games, dreamcast wins.

      That's as may be, but that doesn't change the financials. According to the Salon article, they lost $204 million last quarter, their fourth straight losing quarter. If the Dreamcast was available for much of that quarter, then they're in serious trouble.

      --
      Ooh, a sarcasm detector. Oh, that's a real useful invention.
    2. Re:Enough of these rumors by _xeno_ · · Score: 3
      Lack of modem/ethernet? All the new online games coming out for DC this holiday season are impressive. PS2 owners won't get that anytime soon.

      Yeah, but will Dreamcast users? From what I've heard, Sega's online service had some troubles on launch (enough to get a Penny Arcade cartoon). Besides, most on-line games over dialup are laggy and just seem to play poorly (mostly depending on the latency between server/players). Plus, I have to wonder how servers work - do you start up a server on your DC, or do you play off the official Sega.net servers?

      It's possible that Sony is actually wise in waiting. As most people have pointed out, this is the initial release of a system. Wait for it to become stable. It's not the launch titles I'm interested in, it's MGS2 and FFX. Some time next year, I might actually find myself getting a PS2. But right now, it's not worth it. It takes time for good games - you have to be patient with new consoles. Especially with the PS2, since it is a very radical change in the way most games run. Whether this helps or hurts it in the long run remains to be seen.

      (And, with Sony, you have to wait three or four "versions" before they create one that doesn't break just after the warranty period...)

      --
      You are in a maze of twisty little relative jumps, all alike.
    3. Re:Enough of these rumors by EvlG · · Score: 4

      My roommates have a PS2 and a Dreamcast, and I've played both a lot.

      My impression is that the PS2 is not a bad system, but there is this feeling of something being missing when I play it, compared to the Dreamcast.
      I definitely get the feeling that the machine is very "complacent." I just think to myself, this machine is very behind in some respects. For example, only 2 controller ports are included on the unit? That's a braindead move, ensuring that fewer games will be made to use more than 2 controllers. Lack of modem/ethernet? All the new online games coming out for DC this holiday season are impressive. PS2 owners won't get that anytime soon. DC's use of a VMU for memory and the presentation of additional game content is wonderful, and far superior to the antiquated memory cards sold for PS2, ESPECIALLY since many games don't let players load from an arbitrary memory card, in the same way anyone can load anything from any VMU in most DC games. Additionally, the lack of FSAA really hurts on a TV screen. DC games look crisp and clear, while the PS2 games I've played are full of jagged edges.

      What does all this add up to? A disappointing experience for players that believed all the hype (and continue to believe the hype). The PS2 isn't bad, but in many ways, I find the DC a superior console.

    4. Re:Enough of these rumors by FortKnox · · Score: 4

      I completely agree. Look at how badly the PS2 is being reviewed? They are only getting sold because of hype. When people play PS2 games then play dreamcast games, dreamcast wins. If you don't believe me, try it. Dreamcast has a better machine with better games... Sure PS2 has better hardware, but they aren't using the technology to the max, yet. PS2's only likable feature is its backward compatability.
      Sega is reporting losses... just like everyone in the gaming industry. Why is everyone assuming that they will fail? Look at the reviews!


      -- Don't you hate it when people comment on other people's .sigs??

      --
      Good quote, too many chars. Seriously, the slashdot 120 char limit sucks!
  4. Console Volatile! by curtisk · · Score: 5
    Sega has not had too many hiccups in the hardware area if you look at them historically....Sure Sega Saturn bombed pretty hard, but all manufacturers have had a turd or two:
    • Nintendo: Virtual Boy & N64
    • Sega: Saturn & 32x
    • Atari: Jaguar
    Sony has been successful thus far, since only have had (until recently) one console offering. Who's not to say the PS3 will bomb? The real factor is always the software support and trends(ie. mascots, social trends, etc.)...what has saved Nintendo's sorry ass N64? One word Pokemon!(and to a smaller extent the Zelda hype)....geez even the new version of the console might as well be called the Poke64!
    Jaguar...no real software library..and if I remember right, the price was a little steep at the time.
    Sega Saturn was a bear to develop for and saw limited sucess overseas, but not in U.S. 32x was hyped way too much and didn't deliver.
    Sony had an exceptional freshman outing....and doesn't seem to be about to fall into a "sophmore slump"....but time will tell. Sony is still the new kid on the block, until Xbox comes along. All of the above mentioned companies have had excellent first systems(and even some seconds). You could have the most poly-per-second, trilinear flip-mip-whip mapping,pre rastering engine on the planet, but if you dont have the right mascot or licenses, and have developer friendly (or at least workable)tools....you're gonna have a bomb. And never forget luck!
    --

    Sehr geehrter Toilettenbenutzer!

  5. Okay this Sega stuff is getting old by Mantrid · · Score: 5

    SOA is doing fine, it's Sega of Japan that's struggling. Even PS2 isn't doing that well there, especially software-wise. The only thing that sells PS2's is the DVD capability. SOA sales are quite brisk and some monster titles are hitting this month, Sega net seems to be a hit, and the future actually looks pretty good in North America and Europe. The PS2 shortage may be helping things out as well, especially given dismal launch titles (which seems to be a console tradition...can't wait to see PS2 games coming out next fall!!). It seems that these steady Sega is dying articles are some kind of circular internet thing- all the news sites are reading each other's Sega articles, without fully investigating, and the faulty information is propagating, mutating as it goes. Just go out one weekend and rent a PS2 and a bunch of games, then go out another weekend and rent a Dreamcast and a bunch of games. Buy whichever system has the games you want to play out now, and don't worry about all this doom and gloom. Dreamcast's current installed base is large enough to let the system coast for a year and a half or so if no other unit sold. PS2 is obviously a juggernaut and once developers figure things out, it's going to rock your world. X-Box is still vaporware, but sounds promising. And Gamecube is really vaporware, but Nintendo always manages to sell things. Then there's Indrema, the gameless wonder (moo ha ha)

  6. Slashdot Xanatopia? by ronfar · · Score: 3
    There are two things about /. that have disturbed me lately. The first is the cynical way they have presented the presidential election, and the second is all the pro-Sony hype and FUD they've been pushing at us.

    These articles are FUD, no different than the pro-Microsoft tactic used by people who feared seeing their platform of choice having to compete with alternatives. The truth is some people (and I'm guessing from the coverage that Slashdot's editors are among them) would love to see a console monopoly, just like my boss at work would love to see a Microsoft monopoly. Why? No worries about compatibility. For developers, no worries about developing for multiple platforms. Of course, there is a flaw in this thinking. Microsoft isn't a monopoly, but their domination of the desktop was probably not a good thing. Besides that, I really wish that non-x86 hardware had more of a chance in the marketplace. Variety is more fun than bland, ugly sameness.

    What I really wish is that the Sony would be content with its hoard of casual users, caught up in fad gaming, and leave the consoles that cater to real gamers alone. (I mean, $1500 for a game console that's overpriced at $300 and won't really be that useful until there is a decent line up of games for it, if ever? We're in Beanie Baby/Cabbage Patch land here, a tulip bubble like this can't be good for gaming in general.) Unfortunately, that's not the way huge companies like Sony operate. They'll try to push Sega out of business even if it was only profitable as an enthusiasts system while they devoured the mainstream market. Stories like this are part of a concerted effort by Sony to do just that. Why do I think of these anti-Sega articles as propaganda, because no one treats the serious problems Sony had in the same light. In Japan, the PSX2 is a popular DVD-player, gaming is in a slump... that's bad for a company that is selling its consoles as a loss leader.)

    The thing that amazes me is that as game companies go, they are extraordinarily lame. The content they produce in house is really sort of "bleah." I can't think of one Sony original title I consider a must own, and the only one that has name recognition with me is Crash Bandicoot. The big Sony titles were all produced by third parties, like Capcom, Konami, and Square (Square is not Sony, remember when Nintendo fans found out a similar truth about their own favorite console.)

    Besides which, as has so often been said, Sony is responsible for a lot of the really bad IP laws we all have to deal with. They practically are the DVD CCA, all by themselves. They are one of the biggest multinationals in the world, and they are hostile toward their consumers.

    They've also done their best to frustrate people who dare to play games outside of their region (yes, I know, no different than other game companies, but certainly negating any kind of fan loyalty people should feel toward them.)

    Sega is far from perfect, as game companies go. However, when Slashdot constantly reprints the same story, after it was already refuted, it should cause them to lose credibility.

    --
    All the creatures will die, And all the things will be broken. That's the law of samurai. (Jubai, 1605)
  7. SEGA's failings = bad marketing + sony by Brat+Food · · Score: 5

    2 things have really kept SEGA down over the years. Really bad marketing, and of course, sony.

    Sony has excellent marketing/hype. No doubts about that. Ive never seen so many slobbering idots wait in line to spend 300+ bucks on something with no AAA games and only a few worth even playing for more then a little while. But, you all know this.

    Segas launch got neutered by sony prematurly announcing/releasing the PS2. Thats all there is too it. The PS2 could have stood a 1/2 year more engeneering, better middleware and dev kits, and publishers another year to make real games and not shovelware.

    Sega also failed in the long run with what i think also smashed the saturn: not using their huge licenses.

    Sonic, Phantasy Star, Panzer Dragoon... the list goes on and on. Sony and its third parties recognize on thing - the name sells. For example, Final Fantasy. wow, thay are on 9 in a few days and NONE of them have anything to do with one another, except maybe chocobos. Now ask yourself this, if each title was released under a different name, would they sell as well? No. In truth you could call final fantasy 9 "Po goes the the market to get a fish" and it would be the same game, but, square, as does sony, knows the value in a name.

    This also illustrates the phenomena that the PSX brought to the gaming world: mass market gaming. No longer do you have 90% of the game buying public knowledgeable of the industry, you now have 30% at best. Thats a lot of people who dont even know that sega exists most likely. Tis a shame, as so few PSX titles have had any quality over the last few years.

    For all the sony fanboys, for as much as you want sega to die, no competetion in the gaming market would mean the worst drought of AAA original titles for a long time. The average joe comsumer wont notice, as they couldnt find a good game if it was suck to their ass, but for the hardcore, it will mean final fantasy 39, crash bandicoot 234, spyro 34, and so forth.

    Sega chooses to come up with original content, rather then play off old names. Jet Grind Radio. Samba de Amigo. ChuChu rocket(yes chuchu). Sega has balls, and some of the best game designers this side of nintendo. Anyone truly in to games shold be praying for segas development houses to stay in good health.

    If you havent, go play samba, and tell me its not the most fun youve had with a game in a VERY long time. You may find yourself springing 120 bucks for maracas and the game before you kow what hit you. its that good.

    --

    "Stuff... In my home!? NEVER!" - Zim on Invader Zim
    "I want the toilet seat!" - Little Dog on Two Stupid Dogs
  8. Microsoft's "Sky.Net" Initiative by daeley · · Score: 3

    In related news, Microsoft announced today it was purchasing Sega, Atari, and the rights to Intellivision cartridges. This move was seen as an effort to bolster Microsoft's "Sky.net" project -- sending a single Terminator back in time to execute the makers of any video games other than Bungie's.

    --
    I watched C-beams glitter in the dark near the Tannhauser gate.
  9. Sonic the Microsoftie!? Say it ain't so. by _outcat_ · · Score: 3

    Okay, perhaps this is a very obscure reference, but it IS related and not entirely offtopic.

    First of all, what real evidence do we have that MS will indeed buy Sega? Gahhh...I should certainly hope not.

    If anything, I think Sega should be open-sourced. Here's my take on it; it's rather limited to the comic book scene.

    Archie Comics has a Sonic the Hedgehog lineup, almost to their 100th issue, with surprisingly in-depth storylines and a good deal of artistic talent. Sure, it's just Sonic and a bunch of furries fighting evil, but they look GOOD doing it! Archie's got some good writers working on the Sonic scene, but see, Sega has its OWN characters and agendas. Archie has had a hard time dealing with this as they attempt to make their storylines more involved--Sega demands that Sonic retain a cool and spunky attitude, and he's too "cool" to be involved in any emotional issues that are at the core of developing a fictional character. So it's very hard for Archie to develop personalities and "nail down" the characters...because of this issue.

    If Micros~1 bought Sega, this would likely get even worse. We all know how Microsoft is about licensing. They'd probably demand death scenes of all characters other than those exclusively designed by Sega and put in the games, and a very decent comic title would die out due to lack of readership. Then Sonic and the remaining four or five characters would begin resembling paperclips. They'd lose what little personality they had entirely. And they'd all zoom around quickly correcting spelling mistakes you don't want corrected. At least once a day you'd get a blue (blur) screen. Robotnik would probably be the only remaining character. They'd change his name to Ro-bill-nik, or Redmondnik, or something like that. And Sega and Microsoft would jointly create a new character, Panic the Penguin, with his leagues of evil penguins, whom Ro-Gates-Nik would have to go around converting to his purposes....

    No? Okay. Well, I'm done now.

    --
    Angry IT woman in big clompy boots. And talking lint!.
  10. Not again... by tuffy · · Score: 5
    It's interesting that Sega expects a return to profitability in 2001. What's also interesting is that Sony posted a loss nearly 3 times that of Sega, hasn't released enough product for xmas and rumors are floating around that there won't be more PS2s til spring. I wonder when the Sony doom & gloom rumors will start...

    Really, all this Salon article says is that making consoles is a money-losing business in the short term (which we all knew already) and a whole bunch of speculation about Sega and Microsoft and whatnot. I'm waiting for facts, not what ifs.

    --

    Ita erat quando hic adveni.

  11. Why is this happening? by mwalker · · Score: 3

    What are they doing at Sega? Burning money? I bought a Dreamcast the first day they came out. I now own about 30 Dreamcast titles - I've easily sunk over $1500 in the system. And I LOVE IT. It is by far and away the best gaming system I've ever used. I used to play Quake competitively on a PC - now I play it on Dreamcast, with a keyboard and mouse, and it's SOOO much nicer. I run BSD on my Dreamcast.

    The game availability is as vast as it is amazing. The PS2 is a year late, has like 10 titles, and no hardware anti-aliasing... and from what I've seen of the graphics, they're far from a generation ahead of dreamcast.

    Am I missing something here? Millions of units sold, piles of great titles, terriffic hardware, no CSS or Rambus inside (gag)... HOW IS SEGA LOSING MONEY?

    Is their CEO gambling? Are the engineers smoking crack wrapped in $100 bills? What's the deal here?

    If Microsoft buys Sega I'm going to cry.

  12. *sigh* by ruck · · Score: 3

    Why do these articles keep getting posted to the front page? We've probably had about 4 or 5 in the last few days, each retracting parts of the earlier ones. Some people might be interested in the latest misinformation concerning the sega saga, but post it directly into the game section. Then maybe you wouldn't get 900 "this article sucks" posts.

  13. Reality Check by fondue · · Score: 3
    Point one, look at the software charts and the hardware sales in the US. Dreamcast is doing well there. Sega have indicated that they are going to develop games for other platforms. Calling this the "Doom of Sega" is foolish to say the least.

    Sega are continuing to support the Dreamcast while there is money to be made (and at the moment, there isn't, but there are still a number of quality titles on the cards and a large user base). They are putting more money into R&D (meaning new coinop stuff as well as porting to other platforms). They are still the third largest console manufacturer, after Sony and Nintendo.

    Oh, and for the myopic ppl claiming the PS2 is going to conquer all : one, it's already dated hardware, two, it's overpriced, three, there are _NO_ decent games for it yet, four, the xbox and gamecube are going to eat it for breakfast. Oh yeah, and it doesn't even have a modem !

    It's the future of gaming you know. (Snuck)

    Here's to Christmas 2001, and playing fantastic Sega games on the platform of my choice.

    --

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