What would the gaming industry look like if SEGA still made consoles? (alternate history)

snapdragon

Member
I'm sure this topic has been done to death, but I love alternate history

Context with how Sega's console division could've potentially held on

Scenario 1. Saturn releases when it's originally supposed to release, it doesn't beat the PS1, but is a stable second place for the entire generation

Scenario 2. Sega Saturn gets a better exit, (the system isn't discontinued in western markets until 1999, many third party releases still come out in 1998 with the saturn seeing a mini rennisaunce with games like PD saga, and shining force 3) strengthening consumer/developer trust, DC is launched in spring 1999 with enough chip supply from NEC, and with finished launch titles in Japan instead of the botched late 1998 launch, and the DC is launched at 250$ instead of 200$ internationally, allowing sega to break even on each system sold, Sega probably would still be operating in the red in 98,99,2000, and 2001 but not nearly to the same extent as in our timeline which would give the company enough time to hold out until the Dreamcast could start bringing in a profit

Also the reasons for the DC failing had little to do with its respectable market performance in our timeline. Jehovis' video on the system debunks a lot of misconceptions about the failure of the dreamcast and Sega's console division as a whole in the late 90's


Some of my own predictions for scenario 2
The Dreamcast manages to hold out well against the PS2, Xbox, and GC, due to its already large install base, it being the cheapest system on the market, and Sega showing that they could hold out against the PS2 for a full year. Final system sales for the generation would be PS2 135-150 million units sold, Dreamcast 25-30 million units sold, XBOX 20-25 million units sold, Gamecube 15-20 million units sold.

Sony obviously won the console generation by a landslide. They are still cocky, and I believe they would make the same errors they did with the early PS3. Nintendo was the loser of the generation, but 2 of its other competitors only performed moderately better. For Microsoft, the XBOX takes an even larger loss than in our timeline, and they wrongfully predicted that Sega no longer had the means to compete in the hardware market, but they are still by far the wealthiest company out of the 4, and the XBOX still occupied a decent share of the console market, especially in America. For SEGA, the Dreamcast brought back a lot of market share lost from the Saturn years, it made SEGA a profitable company, and it placed second in the 6th generation, although its market performance suffered in 2004 as the system became too weak to get significant third-party support, however SEGA are still by far the financially weakest company out of the 4 and the costs for RND and development of software would only continue to rise.

If Microsoft wants to continue on with the Xbox, I could still see SEGA bowing out of the console market in a much more financially stable position. Without the merger with Sammy and financial issues from losing millions to both a failed game console and the dying arcades, Sega actually succeeded at becoming a major publisher, we wouldn't see the huge drop off in the overall size of the company and its quality in the 2000s. If Microsoft doesn't want to continue on with the XBOX, I could see Sega's future consoles being somewhat like mixes of Nintendo's and Microsoft systems (hardware that is significantly more powerful than Nintendo's but noticeably weaker than Sony's, its still capable of receiving most third-party titles but generally inferior versions of them, sega has a large focus on the online capabilities of their system with its online services being far superior to sony and especially nintendos, and due to sega not being able to secure as many exclusivity deals with third parties due to them not being as wealthy as sony, they are heavily reliant on their own first party software although not to the same extent that Nintendo is, I think overtime SEGA, Sony and Nintendo basically secure their own parts of the market and no longer directly compete with each other due to how radically different each systems software and hardware are.
 
I can't picture it. It takes a much larger company to compete in the industry today than it did when Sega was in it.

It wasn't one failure that put them out. Sega CD, 32X, Saturn and Dreamcast failed in a shockingly short amount of time. This alternative reality would have to had been so different, it's impossible to imagine what it would be like.
 
I can't picture it. It takes a much larger company to compete in the industry today than it did when Sega was in it.

It wasn't one failure that put them out. Sega CD, 32X, Saturn and Dreamcast failed in a shockingly short amount of time. This alternative reality would have to had been so different, it's impossible to imagine what it would be like.
I think the DC could've held on, but yeah, it is hard seeing how the company would continue to compete even if the DC managed to become a moderate success
 
Despite Microsoft's billions being thrown at Xbox, they couldn't compete with Sony in home consoles and they won't compete with Nintendo on handheld either.

So, how does this successful Sega differentiate itself from PS4/PS5 and Switch/Switch 2?

I think a successful Sega is one that continues to focus on online and multiplayer.

PS2 was all about DVD, Emotion Engine, "cinematic gaming" and attracting a mature audience.

GameCube was about local multiplayer and attracting the child audience.

Dreamcast would have eventually rolled out the broadband adaptor worldwide and would have it as a bundled pack in for new consoles. Imagine games like MSR2, Virtua Fighter 4, Virtua Tennis 3 etc all having great online.

Instead of online gaming ending up mainly being first person shooters, it could have ended up with tens of millions around the world playing Sega's Japanese arcadey games online via Dreamcast 2 and Dreamcast 3.
 
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They need to get back in the game! They should make a legitimate handheld portable console. No one is currently making that. None of these switch-like consoles are portable. Yes, they are hand held but they aren't like the GBA or DS or PSP.
 
They need to get back in the game! They should make a legitimate handheld portable console. No one is currently making that. None of these switch-like consoles are portable. Yes, they are hand held but they aren't like the GBA or DS or PSP.

It's such a huge risk.

In order to garner the support of tens of millions (the market required to attract 3rd parties to port and optimise games) they'd have to remove their games from PlayStation and Switch.

Huge risk


But back to fantasy, if Sega were to have been successful, then that would mean that their style of arcade game would have been hugely popular throughout the 00s at least.
 
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I think the DC could've held on, but yeah, it is hard seeing how the company would continue to compete even if the DC managed to become a moderate success
Too weak for proper third-party support, too weak first-party support to be reliant on, no chance in hell.
 
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I essentially posted this same thread a couple months ago. You might find some more there as well.

 
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They need to get back in the game! They should make a legitimate handheld portable console. No one is currently making that. None of these switch-like consoles are portable. Yes, they are hand held but they aren't like the GBA or DS or PSP.
handheld ? look at Sega's history , Sega is synonymous with high-tech hardware

 
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Shenmue sucks and was a huge waste of resources

Judging Sonic Adventure (DC, not DX) for anything besides its non-Sonic gameplay characters is a skill issue

I loved Sonic Adventure and am very nostalgic for it.

However the later levels (Skydeck and Lost World) are grade A trash, repeatedly falling through the floor is not a skill issue.
 
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RIP Sega if they take their games off PlayStation and Switch and try to go it alone.
Never heard of Hudson Soft? They were the first and one of the most successful third parties on the Famicom from 1984-1986, then in 1987 they released their own console and in 1988 it outsold the Famicom for the first time. in 1991 they returned to making games for Nintendo platforms.

Sega fans are confused; they value a Sega that was poorer and weaker while despising a Sega that was richer, better managed, and had greater market penetration.

Entering the market isn't just about money; it requires powerful franchises that attract people to the platform. Sega didn't have anything like Persona, Total War, Alien Isolation and Bayonetta in the '80s, '90s, and '00s. Some of us don't like Total War, but it's the money from that game that finances the existence of VF6. Because if it depended on Shenmue, Panzer Dragoon Saga and Vectorman, perhaps not even Sega would exist today.
 
If Sega was still in the game, going by history of their final systems, they'd have a small pool of players. A very dedicated bunch but small.

And the system's best features are Sega games with a heavy arcade slant to it. I'll give them credit assuming their first party sports would continue to be good based off DC and Genesis, despite Saturns being horrible.

But their third party games would be lousy and very thinned out.

The system would be competitively powered and a decent price.
 
Shenmue sucks and was a huge waste of resources

Judging Sonic Adventure (DC, not DX) for anything besides its non-Sonic gameplay characters is a skill issue
Sega was very naive, they thought Shenmue would go viral and sell millions, a niche game.
 
It would look pretty much the same but MS would own Sega after they almost went bankrupt.
Wasn't one of the rumors that MS wanted to step in and either fund the next one or own Sega to do so?

I could easily see them craving that legacy Sega I.P. and Brand for an easier ladder to climb when entering the industry.

I think in some alternate reality, had they actually combined forces, they would have been a force to reckon with. MS was spearheading the growth in the west, and Sega was an incredible competitor for the east.

A "Dreamcast 2" with a Sega label, but funded by Microsoft's big bank with that same Xbox shooter/wrpg/online initiative would have felt like an insane threat to both competitors.
 
Without Sony, the market may have remained stagnant and Sega may have still folded up shop for consoles. The market experienced 2 periods of growth from my memory, the PS1 and the Wii. The market continues to remain stagnant and the 3 leaders keep eating eachothers terrority.

Sega was all smoke and mirrors, said it countless times. The success of the Genesis in America was all paid forward. It wasn't until 1994 or later that machines were returned to warehouses and sitting on shelves. It was creative accounting.

People seem to forget Sega had a massive debt wiped off their books, without that, they fail sooner and Dreamcast may never have been released.

I respect Nintendo because the Japanease side holds ALL THE POWER. Sega had America Japan and Europe to a lesser degree on different pages. Only Sega of Europe knocked it out of the park legtimately.

Sega was never succesful in the console hardware business outside of Europe/UK. Arcade yes, creative games yes, mindshare yes.

And before you ask I loved my 32X to death.

Also Sega allowing the bootstrap for the Dreamcast to be so exploitable. Amatuer hour.
 
You'd have to imagine Sony not stepping in and thus no MS for Sega to continue to be the alternative to Nintendo. Sega had a good following in the UK/Europe, they had a cool teen young adult vibe, Streets of Rage 2 was the pinnacle of this. Problem for Sega was they were small and had huge problems in the company to even grow and expand a vision, the only way I see them surviving is if they're allowed to be the default alternative to Nintendo. Sony came in and took the cool factor vibe and expanded the business enormously.
 
Saturn would need way more games, and better ones, to be at second place. N64 has a killer first party that changed the industry and people to this day wants to play those games

Also, Sega was doing financially bad already in the Saturn era. They did a lot of bad choices with the Mega Drive, and even with the console itself doing good, wasn't enough because of the shit they also release
 
Consoles and exclusives are becoming obsolete—it would be foolish for Sega to invest in either. Instead, they should focus on creating the best games possible and making them available to as many players as they can. Personally, I'd rather see them re-release one of their own past systems and develop games that truly push its unique capabilities, rather than relying on generic, off-the-shelf hardware like everyone else.
 
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MJ would be alive, Sonic too, and most importantly Hermen hulst would still be working as a spit shiner in some third rate bdsm club in Amsterdam, instead of working overtime at killing our passion.
 
Consoles and exclusives are becoming obsolete—it would be foolish for Sega to invest in either.
Go to Nintendo and Sony, tell them this and they will do it like this

Jonah Jameson GIFs | Tenor


Go to any xbot blog and ask what kind of console they want, whether a pc with an xbox sticker or a new traditional console like the xbox 360.
there is pent-up demand for a good console.
 
Wasn't one of the rumors that MS wanted to step in and either fund the next one or own Sega to do so?

I could easily see them craving that legacy Sega I.P. and Brand for an easier ladder to climb when entering the industry.

I think in some alternate reality, had they actually combined forces, they would have been a force to reckon with. MS was spearheading the growth in the west, and Sega was an incredible competitor for the east.

A "Dreamcast 2" with a Sega label, but funded by Microsoft's big bank with that same Xbox shooter/wrpg/online initiative would have felt like an insane threat to both competitors.
Ohh, yes this would've been a very interesting alternative timeline. Sega's experience/recognition in the eastern market and foothold in Europe combined with MS money and western connections could've been a powerful combo. The focus on connectivity and online gaming would've aligned perfectly.

MS might've helped steer Sega away from it's dependencies on arcade ports and Sega could've made sure any IPs MS brought to the table landed better in the eastern market.

Could be that we still ended up somewhat close to where we are today, but it would've been quite the ride.

Lol, I've never been so dependent on could've, would've and might've in my life. 😅
 
Phil Spencer would still be working on Encarta instead too
Jim Ryan would be serving fish and chips with a pint of bitter in a Croydon pub.

Yuji Naka would have never served time in jail, Iwata would have beaten cancer, Segata Sanshiro would have ipponed Anita Sarkessian and Feminist Frequency into oblivion, preventing the whole DEI debacle, etc.

The list goes on and on, it makes me really sad how much we lost
Sad Season 2 GIF by Friends
 
Go to Nintendo and Sony, tell them this and they will do it like this

Jonah Jameson GIFs | Tenor


Go to any xbot blog and ask what kind of console they want, whether a pc with an xbox sticker or a new traditional console like the xbox 360.
there is pent-up demand for a good console.

You're probably right that there's still demand for traditional consoles, especially from loyal fanbases. But that doesn't change the fact that consoles today are basically budget PCs—with paywalls for online play—and I want no part of that.

I'd rather play games the best way possible: high-end PC, max settings, free online. Why settle for the watered-down version?

And to be clear, I don't have anything against what consoles used to be. I actually loved when each system had its own identity—unique graphics, sound quirks, and hardware limitations that shaped how games were made. That era had soul. But now everything's homogenized.

Even Microsoft—and now Sony—are putting their games on PC. That's not some coincidence. It's a clear shift in the industry. Consoles just aren't made for me anymore, and that's why I've moved on.
 
You're probably right that there's still demand for traditional consoles, especially from loyal fanbases.
:messenger_horns:
Even Microsoft—and now Sony—are putting their games on PC. That's not some coincidence. It's a clear shift in the industry. Consoles just aren't made for me anymore, and that's why I've moved on.
images
This part deserves a comment, but what I can tell you is that this isn't new. When Sega was about to launch its fourth-generation console, Nec Hudson came out ahead, so what does Sega do? It releases Wonder Boy as the launch title for the Nec console.

Sega released Saturn games on the PC , Sony released Wipeout on the Saturn, nothing new . It's natural for companies to release games that flop on consoles to the PC in an attempt to recoup their investment. They spend $150M making a game (which needs to sell almost 3 million) and the game sells 1 million copies, so it needs to be ported to the PC or a competing console. The console market will only end if Sony decides that it no longer wants to exist as a big company.
 
:messenger_horns:

images
This part deserves a comment, but what I can tell you is that this isn't new. When Sega was about to launch its fourth-generation console, Nec Hudson came out ahead, so what does Sega do? It releases Wonder Boy as the launch title for the Nec console.

Sega released Saturn games on the PC , Sony released Wipeout on the Saturn, nothing new . It's natural for companies to release games that flop on consoles to the PC in an attempt to recoup their investment. They spend $150M making a game (which needs to sell almost 3 million) and the game sells 1 million copies, so it needs to be ported to the PC or a competing console. The console market will only end if Sony decides that it no longer wants to exist as a big company.

Ports have always been around, but this is different:

-System sellers like God of War and Horizon Zero Dawn hit PC within a year of console launch—and with full PC polish (4K, ultrawide, mouse/keyboard).
-Microsoft treats Windows as part of Xbox, and Sony is finally letting its biggest exclusives go to PC.

That's not just cashing in on console flops—it's a deliberate shift in how games are sold.
 
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