[QUOTE="doubutsuteki"]
Sega was an innovative arcade developer, hardware designer, and the main home console competitor company to Nintendo. Their focus was not only on the arcades - that's just where they started out - which I hope you are enough aware of not to have to ask someone (me) who you presume know nothing about them.
Sega is a name, used by its parent company to label games made by some of the people involved with the old Sega company. Its focus is on developing sequels to the old popular Sega arcade games. Why? I wouldn't know for sure, but let me take a wild guess: That's what the people in charge believe can be profitable without much risk of loss involved, because of fanboy culture with its indulgence in old franchises and brand names - unlike the many projects that the original Sega company involved themselves in, as they tried to be on the top - and occasionally were -, extending into several markets rather than simply catering to a niche of gamers who haven't grown up. They had a broader perspective. The Mega Drive / Genesis is a good example: It was a console both with computer and arcade ports, and with titles specifically designed for it in-house (like most consoles), not to appeal only to the japanese otaku, but to take on the entire Nintendo monopoly and the world.
SNK was mainly an arcade company. The same cannot be said for Sega, even though it is true that the company started out that way and retained a focus on the arcades throughout its existence. But they were as famous for games such as OutRun as they were for Sonic the Hedgehog. So, if the console market didn't mean much to Sega, then why did they invest more in it than they could afford to lose? Why was the company bought by Sammy? Isn't it evident that Sega were not content being just one of the foremost arcade developers? Sammy however are content with things remaining that way for what remains of the old development teams they acquired from the purchase of the company.
Panzer_Zwei
I guess it would be better for actual old guard SEGA developer to settle the actual facts:
"Of course [Sega's decision to stop Dreamcast production] was a shock, but having said that, it was not entirely a surprise. Sega is a company that really made money from arcades, not the consumer market.The money we made from arcades went to finance the consumer activity and develop another aspect of Sega. So the fact that the Dreamcast didn't have the rocket start we all hoped for was an early indication, maybe, of things to come. It is true that, as a person from the AM divisions, my view of the consumer division was a bit 'cold'. While gaming as a whole was going well, at that point we also started to see early signs of the boom fading away. I'm talking here about the entire industry, not just Sega."
Tez Okano
So yes, SEGA is first and foremost an arcade company. They have two huge amusement parks in Japan, and not to mention the 5+ floor SEGA clubs spread throughout Japan. They also develop and manufacture generic arcade cabinets for other companies to use, and also handle supply and promotion lines of other companie's games. But I guess you were unawar of that small fact.
The consumer division was just the side-business of SEGA, and it mainly served to profit even more from the own arcade games by porting them to their own systems. In fact the main division was willing to finance another SEGA console after the Dreamcast, but the consumer division (mainly SoA) said why bother?
And yes, exactly, why did they merged with Sammy of all companies? Because Sammy is the #1 arcade entertained in Japan. Not because of video games like SEGA and Namco do, but because of their pachinko machines that turn billions of yen in revenew each year. The merger itself had actually little to do with the consumer division, and the restucturation was handled for SEGA's part not Sammy. Sammy and SEGA remain separate when it comes to software and hardware developing, unlike Namco-Bandai or Square-Enix.
Yeah, yeah, I've heard that interview before. How convenient - now that we know how their console business turned out - to say that they are "foremost an arcade company". It's not like I expected them to publically state that they screwed up; it's better to try to save the company's face with understatements.
The rest of your post doesn't really concern games. The fact that Sammy and not one of the other companies ended up buying Sega only serves to further illustrate how unimportant Sega were as game developers at that point. Now, as someone who certainly doesn't always share the view of the majority of the industry of what a game should be, I still have plenty of hatred left for games that are designed around a money-sucking mechanism, such as pachinko and arcade coin-ops. Their demise outside of Japan I can only appreciate (Poker, slot-machines, etc., however, remain popular). But go on and pump money into those, amusement parks and what not, if that makes sense to you from a gaming perspective.
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