I thought they were met with bankruptcy until Sammy Holdings took hold of them.
SEGA were never formally declared legally bankrupt, so saying SEGA were met with bankruptcy is not right. The thing that saved them from ever really bankrupt was SEGA's chairman Isao Okawa's personal will after he passed away in 2001. Before dying, his personal will forgave roughly $500 million in debt that Sega owed him and returned his personal stock (worth hundreds of millions) back to the company. This prevented formal bankruptcy and surprised everyone at SEGA since it's really like Deus ex Machina. Religious fans would say God came at the right time, a moment before the fall. That was in 2001.
Three years later in 2004, Sammy Corporation acquired a controlling stake in Sega, forming the parent company SEGA Sammy Holdings, which stabilized its long-term financial future. So Sammy didn't save them from bankruptcy (Isao Okawa did) but Sammy did help stabilizing SEGA's long-term financial future since SEGA was still struggling at that time.
And while yes, a favourable strategic move to no longer make consoles, how come they're no longer at par with Nintendo, XBox or PlayStation?
Because they're playing safe with risk management now.
Sony or Microsoft can always burn money since their parent company was very very very big.
SEGA and even Nintendo don't have that kind of luxury so every risks must be calculated precisely.
And this is the reported latest full-year net sales (revenue) of some game companies (CMIIW) :
Taito - approx. $0.45 billion USD
Capcom - approx. $1.24 billion USD
Ubisoft - approx. $1.61 billion USD
Square Enix - approx. $1.8 billion USD
Garena - approx. $2.4 billion USD
Nexon - approx. $3.10 billion USD
SEGA - approx. $3.19 billion USDKonami - approx. $3.3 billion USD
Roblox Corporation - approx. $4.90 billion USD
Epic Games - approx. $5.7 billion USD
Take Two Interactive - approx. $6.66 billion USD
EA - approx. $7.53 billion USD
Bandai Namco - approx. $8.2 billion USD
Nintendo - approx. $14.6 billion USDNetEase - approx. $16.1 billion USD
Sony - approx. $78.83 billion USD *
Apple Store - approx. $82 billion USD
Tencent - approx. $109.4 billion USD
Microsoft - approx. $331.80 billion USD *
* not just from video games & their franchises-related though.
so SEGA has a lot to catch up if they aim for Nintendo level. They even have to beat Konami, EA, Bandai Namco, and lot of other game companies first. Still long road to go.
