Microsoft didn’t aquire SEGA due to lack of ‘muscle’
Right now Microsoft is a big player in the game console race, but a decade ago they weren’t in the same position as they are now. Like a bad stereotype, before Microsoft entered the market with the Xbox, there were tons of rumors about them purchasing a gaming company, and one of those comapnies was SEGA.
So why didn’t Microsoft ever pick up SEGA? Well, according to then-CEO Bill Gates, he thought that the house of Sonic lacked the ‘muscle’ to compete with a company like Sony. This is what Joachim Kempin, who worked at Microsoft from 1983 to 2003, had to say:
“There were three companies at that point in time, I think this was [Sony,] Sega and Nintendo. There was always talk maybe we buy Sega or something like that; that never materialized, but we were actually able to license them what they call Windows CE, the younger brother of Windows, to run on their system and make that their platform. But 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.”
He did state that SEGA was “a very different bird” which we can all agree. But its not like they hated everything SEGA did, I mean, they did put the Xbox in the hands of Dreamcast era SEGA COO Peter Moore.