Microsoft almost bought Sega, but didn't think they could beat Sony


The title pretty much says it all, other than when this took place. Before releasing the original Xbox, Microsoft gave serious thought to buying Sega entirely. The companies were working together before hand anyway, since every Dreamcast shipped with Windows CE installed. According to former Microsoft executive, Joachim Kempin, however, helping the Dreamcast would not have been enough to stop Sony and their PlayStation,

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. 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.

According to, the original Xbox went on to sell 24 million units while the Dreamcast only sold 10 million.

Imagine if Microsoft had actually supported Sega. One could say that Microsoft could have actually saved the Dreamcast simply with their financial support. Imagine the Dreamcast to be the one to kick off “Dreamcast Live,” instead of Xbox Live. Oh the possibilities. What do you think could have happened?

[Source: Euro Gamer]

Readers Comments (5)

  1. What the F**K?! That’s a bunch of Scooby snacks! Another Microsoft fail.

  2. Ha, it’s funny because I have been meaning to post in the forums asking what you guys thought about Sega being bought out by Sony, MS or Nintendo. Sad to see it could have happened. With better management and an advertising budget (as well as $$ to hire top talent) we could easily have all the games we have been clamoring for.

    Considering how hard (early on especially) MS was trying to make headway in Japan, I’m really surprised they didn’t buy em up (assuming Sega would have gone with it)

  3. To be honest, I’m really glad they didn’t. Look at what they did to Rare. I’m positive they would’ve done the same to SEGA.

  4. I posted what I can recall bout the Microsoft & Sega dance in the Sega section of the Sega Addicts Fourm page. Give it a gander!

  5. When you stop and think about it, the Dreamcast is still remembered and played by a large number of people; even going as far as having games developed for it years after its death. I think a Microsoft/Sega team may have ruined the love that console currently gets. And my rambling is finished 🙂

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