Microsoft Was Going to Buy SEGA, Says Ex-Exec

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In an attempt to halt PlayStation’s domination of the console market, Microsoft wanted to buy Sega.

That’s according to ex-Microsoft “enforcer” Joachim Kempin, who revealed that Bill Gates eventually nixed the idea as he believed SEGA lacked “the muscle” to take on Sony.

“There were three companies at that point in time, I think this was Sony, SEGA and Nintendo,” said Kempin. “There was always talk maybe we buy SEGA or something like that; that never materialised.”

He went on to say that in place of the deal, Microsoft ended up licensing Windows CE support for SEGA’s Dreamcast console.

“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 continued.

“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.”