Was Sega Bought By Nintendo?

Who owns Sega? Was Sega bought by Nintendo? We answer all your questions about Sega’s ownership right here! Check it out!

Sega and Nintendo are two iconic gaming console majors from Japan which enjoyed huge popularity in the 90’s. While Nintendo still enjoys a good fan following, Sega stopped selling consoles after 2001, owing to its financial losses and was later acquired by Sammy Corporation.

Following the buyout, Sega restructured itself as a third-party supplier helping out other consoles and services with the publishing of classic Sega games like “Sonic the Hedgehog”.

With Sega games regaining popularity on Nintendo’s these days, especially on the Wii U and Nintendo Switch, users have developed a notion that Sega is now bought by Nintendo. Not to mention the other rumors flouted in the gaming community around Sega’s buyouts and ownership though.

However, to streamline the discussion, we take a quick look at the history, evolution, partnership and popularity of Sega and Nintendo, and who owns whom?

Was Sega Bought By Nintendo?

Sega is not owned by Nintendo but Nintendo does have rights to some of Sega’s games. Which is why you’ll find several Sega games on Nintendo devices.

Both the Japanese gaming legends share a very good relation but Sega is not owned by Nintendo. What essentially were arch-rivals, Nintendo did maintain a healthy professional relationship with Sega which helped them crack some good deals with Sega including rights to Sega games on the Wii U, 3DS as well as the Nintendo Switch.

What is Sega?

Sega originated as a company called Service Games, which created slot machine and other coin operated games that were installed at military bases throughout the United State to make money off the boredom of US service members. Several closures and mergers eventually led to a new business replacing Service Games with the name Sega.

Was Sega Bought By Nintendo?
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The US eventually banned most coin-operated gambling machines which made Sega to look at international opportunities, eventually finding a spot in Japan. In the late 70s, Sega was able to find major success with the introduction of arcade games and then eventually home consoles.

Sega published games for the Atari, ColecoVision and the Commodore 64. However, by the mid 80s, Sega began to struggle with an overabundance of games. At this point Sega decided to create their own console called the SG-1000.

Who Owns Sega Right Now?

Sega and Nintendo have a great relationship but Sega is not owned by Nintendo. They do have the rights to many of the Sega games and this is why there are some Sega games on the Nintendo Switch as well as other Nintendo devices. Martin Bromley and Richard Stewart are the masterminds behind the creation of Sega which was founded on 3rd of june 1960.

The company was originally called “Nihon Goraku Bussan” and eventually was changed to Sega Enterprises,Ltd. In its early stages Nintendo was Sega’s biggest competitor in the market once it was bought by Gulf and Western Industries in 1969. After they purchased Sega they immediately began to develop video game consoles.

In 2004, the Sammy Corporation acquired Sega. Sega’s Japanese assets were purchased by a group of investors for $38 million. This purchase was led by Rosen and Nakayama who went on to become the CEO of Sega Enterprises.

Meanwhile Nintendo managed to make some good deals with Sega for the future. While Sega and Nintendo were competitors in the gaming console market, Nintendo was still able to keep a professional relationship with Sega and not try to tear down the products.

Nintendo Switch Hybrid Gaming Console
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Even at one point Sega sold more of their new consoles than Nintendo’s new systems. By maintaining this good relationship, Nintendo was able to secure the rights to have Sega games on the Wii U, 3DS and Nintendo Switch. This deal not only helped attract more gamers but also helped Nintendo capture a huge share of Sega’s market.

When Sega stopped making hardware and just started doing software. The first platform that they wanted to release Sonic on was a Nintendo Console. Due to this relationship Sega has been able to publish many great games on the Nintendo platform.

Did Nintendo Buy Sega when they went Bankrupt?

A series of buyouts and closures then led to a Japanese company buying Sega and rebranding as Sega Enterprises. They immediately brought its headquarters to Japan and went public, trading on the Tokyo Stock Exchange.

They soon released the Sega Master System, which was technically superior to the Nintendo. However, Sega didn’t really get as much attention as the comparable companies.

The Sega Master System might’ve struggled in North America but it did much better across Europe and Australia especially. Things really took off in 1989, when Sega launched the Sega Genesis. As the Super Nintendo was releasing, Sega countered with their new mascot for the company “Sonic the Hedgehog”.

This game skyrocketed the Genesis to massive success. Sega followed up Sonic, with Sonic 2, which became the most successful game that Sega ever produced, selling over 6 million copies back then it was a huge milestone.

Sega's Sonic The Hedgehog Game
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The next big Console was the Dreamcast. This console had better graphics capabilities than its direct competition. It also includes a modem for multiplayer gaming which was nearly unheard of in the console department.

This allowed for the first console massive multiplayer game Phantasy Star online to take root. The Dreamcast also had the first console game with voice chat. The launch in the US was the most successful hardware launch in history, at that point selling over 500,000 consoles in the first week.

In 2000, Sega changed its name from Sega Enterprises to Sega Corporation.This time they also announced that they would be moving from hardware creation to software creation, Focusing on games that would be playable across all platforms.

Nintendo Vs Sega

Nintendo’s intended accompaniment goes back much further than expected. In 1889 they began by creating and distributing a playing card game called Hana Fuda.

Their success meant that the company had to keep increasing staff to keep up with the demand the success lasted through the early 1900s and in 1963 Nintendo began to venture into other area of business including a taxi company,

Hotel chains and a food company however all of these ventures failed eventually and even plane card sales began to plummet Nintendo started looking at games and electronic toys.

Nintendo’s first video game came in 1974 and they began creating something called the Color TV game which was a box that usually featured one game with different variations. In 1979 Nintendo launched the first handheld video game called Game & Watch which was a handheld machine that featured one individual game.

In 1981 they released the game Donkey Kong on ports like Atari (A console Manufacturing Company) and in television this game was designed by relative newcomer Shigeru Miyamoto who would become one of Nintendo’s most important figures. Donkey Kong also introduced the world to Mario, also known as jump man in Japan.

A Donkey Kong game and watch was created in 1982 and featured the first rendition of what we now call the D-Pad which later earned many awards for innovation. In 1983 Nintendo released the Family computer in Japan which was released in 1985 in North America now called “The Nintendo Entertainment System”.

This system introduced the world to Super Mario Brothers, now one of the best selling video games of all time. In 1990 the Super Nintendo launched in North America boosting the visual capacity of the games from 8-bits to 16-bits.

Nintendo Entertainment Systems
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The Super Nintendo arrived opposite of their major competitor known in North America as the Sega Genesis. The 90s marked a decade of rivalry between these two brands. In 1996 Nintendo launched the first 64-bit graphic system, the Nintendo 64.

‘Other console systems brands were beginning to use CDs to hold games but Nintendo 64 was still using cartridges. But still managed to keep up with if not even surpass its competitors.

The next jump in consoles was the Nintendo Wii in 2006. Wii introduced a whole new style of controller with the Wii Remote and created new ways of playing games especially fitness and sports games which sold more than 100 million units and finally overcame its competition. The follow up to the Wii was released in 2012 called the Wii U which tried establishing “hybrid” Nintendo consoles.

Nintendo also introduced called the Amiibo which are small figures of popular characters that carry electronic data these amiibo can unlock new characters, new levels and also they are highly collectible sometimes they’ve been selling out completely rare and defective amiibos go for really high figures including a defect Princess peach selling over 25 thousand dollars on ebay.

Was Sega Bought By Nintendo? FAQs

Who bought the Sega company?

Sega’s Japanese assets were eventually acquired by a group of investors headed by Rosen and Nakayama for $38 million. CSK chairman Isako Okawa also became the chairman of Sega while Nakayama turned out to be the CEO of Sega Enterprises LTD.

Are Nintendo and Sega friends?

Sega and Nintendo are very close allies today and they rely heavily on each other on most aspects. However, back in the 1980’s, they were the arch-rivals fighting for dominance in the home console market.

Is Sonic a Nintendo or Sega?

Sonic the Hedgehog is a console video game series and media franchise which was developed and owned by Sega. However, following Sega’s ouster from the console market and reliance on third-party development in 2001, Sega continues to offer the Sonic on popular consoles like Nintendo, Xbox, PlayStation and others.

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Jeff Seine