Nintendo to buy Sega?
Supposedly in Tokyo some kind of a secret deal between Nintendo and Sega is going down, this deal is for the purchase of Sega that is said to be worth two billion dollars! The President of Nintendo Co. LTD strongly denied the allegations saying that there is not one chance that Nintendo would pursue Sega, and he's got some great points too. The New York Times reported on Wednesday that when the rumor broke out and denied, Sega's stock price on the Tokyo Stock Exchange [Nikkei] rose 10.5%, while Nintendo's decreased, 5.4%. "There is absolutely no chance that Nintendo will buy Sega," said Hiroshi Yamauchi, the president of Nintendo, in a statement on Wednesday.
NYT is also reporting that these talks have been going on for a few months now, but Sega and Nintendo executives find this a joke, as one Nintendo rep laughed at the statement saying, "In this industry there are various kinds of rumors". But The Times went as far as to say that Sega's Chairman, Isao Okawa had been trying to sell Sega for quite a while now, and the he had even held meetings with Microsoft. This I believe can be all true, Sega lost $357.4 million last year, and analysts believe that that number may have increased, even though Sega Dreamcast sales have risen 24% this holiday season.
What may turn out to be a coup-de-grace to Sega is the fact that KMart has pulled all Dreamcast related items (including the console) off of their store shelves, and KMart is quite the populated store, to say the least. Here in the US Sega's share of console sales has dropped to 17.5% in the fourth quarter, meanwhile last year at the same time that number was 18.8%. It's obvious that Sony is to blame here, ever since their entry into the 3D world back in 1995, Sega and Nintendo have been struggling to keep up. Sega was able to sell over 500,000 Dreamcast units in a one months period after the system's launch on 9/9/99, but Sony's Playstation 2 Entertainment Console stepped all over that record like GodZilla would over a human being, by selling that same amount of units in a few short hours just recently on October 26th.
Sony now holds 67.9% of total console sales that is including both PSOne (Playstation) and Playstation 2 up from last years 49.1%. Sega is in second place claiming 17.3% hardware sales, leaving Nintendo in third with only 14.8% hardware sales. If anymore info arises on this topic, we'll have you covered.