Is Sega the Next Atari?

donniebaseball23 writes As CEO of Sega of America in the early 1990s, Tom Kalinske oversaw the company during its glory days, when all eyes in the industry were glued to the titanic struggle for console superiority between the Super Nintendo and Sega Genesis. Times have changed, to put it mildly, and Sega is now a shell of its former self. Where did things go wrong? According to Kalinske, Sega's downfall was failing to partner with Sony on a new platform, and the bad decisions kept piling on from there. Sega's exit from hardware "could have been avoided if they had made the right decisions going back literally 20 years ago. But they seem to have made the wrong decisions for 20 years."

Comments

Question In Headline

[sexconker]

Answer is "no".

SEGA is not "the next Atari". They've been a fucking dead husk for over a decade.

Re:Question In Headline

[Dutch Gun]

I suspect we largely agree on the generalities, but I'd have said "yes". Sega is on life support, but not quite dead. Atari has died, was buried, resurrected like a zombie, and is in the process of dying a second time. Both companies made bad decision after bad decision, causing the collapse of their companies. Sega seems to be following in Atari's footsteps quite handily, the only difference being that Atari had a nice head start on them.

I always wonder what it is about businesses that seem unable to do just about anything to turn themselves around versus more successful ones. Simply the guy at the helm? The corporate culture? A too-entrenched bureaucracy? How does a single company make bad decision after bad decision so persistently?

The article talks about how a brand like Atari can survive in a new home, but what's the point of that? It can be resurrected and slapped onto new products, but unless those new products actually reflect what made the brand successful in the first place, it will eventually wither and die again, just like before. It's a recipe for a short term fix and subsequent fall. If anything, a "new branding" simply indicates a company's lack of confidence in their ability to make their own name a recognized and successful brand.

Re:I thought that was Nintendo's failure...

[MBGMorden]

Dreamcast had some issues that were hard to overcome that weren't just marketing related.

1. The proprietary "GD-ROM" disc format. 1GB of storage space which was a fraction of what PS2 had with DVD's. It also didn't let people play DVD movies at a time when DVD movie players were still expensive.

2. Incredibly easy piracy. Most of the games targeted for GD-ROM's were capable of fitting on a regular CD, and people figured out how to make easily burnable pirated games without even needing a modchip.

#2 was a fluke, but #1 was just a bad decision in general. I honestly think if Dreamcast had shipped with a DVD drive Sega would still be making hardware.