Microsoft reportedly seeking to buy Sega

Stevey Boy

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Microsoft tends to look outside Redmond to beef up its Xbox game titles, and has snapped up some rising game developers over the past several years.

Now, Japanese game maker Sega is entertaining offers from corporate suitors, and Microsoft is thought to be one of the interested parties. Japan's Yomiuri newspaper this week reported that Microsoft has approached Sega about buying a stake in the company.

Microsoft and Sega will not comment, but the speculation has boosted Sega's flagging share price and given rise to much discussion about what such a partnership could mean.

Some observers have said it would benefit both sides. Microsoft could include Sonic the Hedgehog games in its catalog of so-called first-party titles, which are often more lucrative than relying on independent, third-party developers, while Sega would have the financial backing and stability it needs. Others have said the two companies are too diverse, and that Sega is too large to be successfully integrated.

Sega is already juggling merger offers, even after announcing in February that it planned to combine with Sammy, which makes machines for playing a Japanese form of pinball called pachinko. The share prices of both companies fell after the announcement. Last week, Sega announced it has received an offer from Japanese rival Namco.

Sega said Monday it is moving forward with the Sammy deal, but that its board of directors will discuss both proposals at its next meeting in June. Video-game maker Electronic Arts, a leading American game developer, is also thought to be interested in buying at least a significant stake in Sega.

Sega's share price has plummeted over the past six months. Last November, the one-time game-console maker slashed its profit outlook by 72 percent to $41 million for its fiscal year ended March 31.

In January, Sega of America President Peter Moore resigned to join Xbox. Moore didn't bring Sega along with him, but some analysts said a Microsoft-Sega deal makes sense, particularly because Microsoft is not known for developing its own original games.

"They don't have enough original content for the Xbox as they could use," said Billy Pidgeon, a senior analyst for the Zelos Group.

Sega's Sonic the Hedgehog series has great potential, said Arvind Bhatia, a Southwest Securities analyst who follows the video-game industry. Microsoft might want to offer Sonic games and other titles as Xbox exclusives, he said. The Mario franchise, for example, has been a bedrock for Nintendo.



"What Microsoft really needs right now is what we call a 'killer app'-type title," Bhatia said. "The only one they've been able to come out with is 'Halo.' "

Developing big games is a difficult business, in part because game creation is expensive and labor-intensive and also because the whims of game players are unpredictable.

One of the best ways to produce games is to go out and acquire content, said video-game analyst David Cole, and Sony, Microsoft and Nintendo are all looking for acquisition candidates.

Microsoft has acquired a handful of game developers, including U.K.-based Rare and American companies Digital Anvil and Bungie Studios.

"It's a constant battle," he said. "You're trying to build up all that product line and trying to get the newest products."

A Microsoft-Sega deal might run into problems because an acquisition of that size would be very expensive and difficult for Microsoft to digest, Cole said. It also goes against the current trend of picking up product from smaller, more agile developers.

http://seattletimes.nwsource.com/html/eastsidenews/134681288_msftsega23.html
 
Maybe it's reason why Microsoft send their spies to Nintendo of America to find out about Sega. And then MS decide to buy Sega to keep Nintendo away from Sega?

And... I hate to see MS keep buy and buy other companies to be under M$, damnit!
 
it's not going to happen because Sega is not interested in mircosoft no matter how much...
 
Originally posted by *~Rayden Wins~*
yeah - BUT MS's NOT gonna buy Nintendo - period

Microsoft would DIE to buy out Nintendo, but they KNOW that they won't be able to.

So, that's why you don't see them trying to buy Nintendo out.
 
C'monl...i think Rare is enough for Mircosoft eh? Perfect Dark, Banjo-Kazooie, and Conker are going returning to Xbox as greatest titles on the Xbox for the first time
 
Originally posted by Steel
C'monl...i think Rare is enough for Mircosoft eh? Perfect Dark, Banjo-Kazooie, and Conker are going returning to Xbox as greatest titles on the Xbox for the first time

when??????? lol rare hasnt developed any game for x box yet...
 
Originally posted by DefMATRIXense
when??????? lol rare hasnt developed any game for x box yet...

Well.. they are developing games as we speak. But none has yet to be released.
 
One game from Rare should be coming to Xbox later this year but i don't know which would come out first
 
oh yeah that one! i remember reading that from an article in a videogame magazine...hope it'll be very good though
 
kameo_ss_06.jpg


hmmm to be honest i think Joanna Dark is alot sexier than Kameo lol
 
hey hey hey look at bill gate he have money and he love to steal people program to make more money and tried to sell for weak people who fall for bill gate s ideas that is how micsoft stay strong all the times well that is life and well we are still stuck with bill gate for long times and yeah bill gate did buy rare few months ago i check it on www.xbox365.com that is how news come speard i really dont like bill gate steal and buy.....
anyone know about bill gate steal some idea from apple computer that is how he make more pouplar than apple mac ouch that hurt so take care
 
well i don't think Sega has any interest in joining Mircosoft...there are alot of statements that sega is seeking their future toward Sammy software...(best known for guilty gear series)
 
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