The decline of SEGA is due primarily to the extinction of the 'arcade gaming' (at least out of Japan).īeing a third-party isn´t something necessarily bad (Is VALVE bad because not being a console manufacturer). The main reason of the success of SEGA in videogame industry wasn´t the console market, but the arcade market, in which it was number 1 (along with Namco). Console market is a natural oligopoly (with no more than 3 companies being successful in a certain generation). Cost of development of software development are really high, so imagine the cost of producing hardware.Ĥ. That decision to focus on these last two (in 2015) is quite understandable.ģ. This could be an off-topic, but nowadays consoles are in decline, in favor of PC and iOS/Android-based systems.

Believe or not, discontinuing the console was the best they could do so, instead of going bankrupt.Ģ. This situation was the one that killed the Dreamcast. The first-parties have to make profits from the sale of exclusive games and the payment of royalties. Unlike what happened in the past, the current console market is in deficit. I also wanted that reentry, but nowadays I´m sure that business decision (from an economical viewpoint) could be disastrous for the company because these reasons:ġ. I see on a several part of the game community a great desire to see SEGA again in the current 'console war'.

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