Sega Invests 90 Million Dollars into Atari - 1994

[yeye]

I stumbled across some odd financial articles from the mid 90s.  There aren't any details in regards to what Sega gained from these investments.  If some Atari Jaguar projects were appropriated into the Sega Saturn's library, that could've been interesting.  Although, it's extremely unclear if that happened or not based on my research.

https://www.nytimes.com/1994/11/17/business/company-news-atari-stock-rises-as-deal-with-sega-is-completed.html

https://www.nytimes.com/1994/09/29/business/company-news-sega-investing-90-million-in-atari.html

 

These payments were probably related to a settlement of a previous lawsuit against Sega.

https://law.justia.com/cases/federal/district-courts/FSupp/869/783/1495595/

 

This was one of many interesting examples of Sega hemorrhaging money during the mid 90s.  On a slightly unrelated note, it'd be interesting to see what kinds of canceled virtual reality, theme park rides, and unknown research and development projects were canceled during this timeframe.  Sega was unwilling, or perhaps unable, to soak the hardware losses of each Sega Saturn sold.  The Sega Dreamcast resulted in a similar dilemma of competing with PlayStation and it's loss leading practices.

https://mdshock.com/2020/06/16/hideki-sato-discussing-the-sega-saturn/

 

After all, Sega was apparently poised to become the next Disney...

https://www.wired.com/1993/06/sega/

https://kotaku.com/when-sega-wanted-to-take-over-the-world-and-failed-mis-5828939

 

[DegasElite]

Actually, I have seen a copy of Tempest 2000 in play for the Sega Saturn in a video. It had the CD soundtrack for the music in the game. Here is a YouTube link for that version. By the way, welcome to the Club, yeye! Nice to see new faces. :O)

 

Edited October 13, 2021 by DegasElite

[Justin]

On 2/13/2021 at 2:48 AM, yeye said:

I stumbled across some odd financial articles from the mid 90s.  There aren't any details in regards to what Sega gained from these investments.  If some Atari Jaguar projects were appropriated into the Sega Saturn's library, that could've been interesting.  Although, it's extremely unclear if that happened or not based on my research.

https://www.nytimes.com/1994/11/17/business/company-news-atari-stock-rises-as-deal-with-sega-is-completed.html

https://www.nytimes.com/1994/09/29/business/company-news-sega-investing-90-million-in-atari.html

 

These payments were probably related to a settlement of a previous lawsuit against Sega.

https://law.justia.com/cases/federal/district-courts/FSupp/869/783/1495595/

 

This was one of many interesting examples of Sega hemorrhaging money during the mid 90s.  On a slightly unrelated note, it'd be interesting to see what kinds of canceled virtual reality, theme park rides, and unknown research and development projects were canceled during this timeframe.  Sega was unwilling, or perhaps unable, to soak the hardware losses of each Sega Saturn sold.  The Sega Dreamcast resulted in a similar dilemma of competing with PlayStation and it's loss leading practices.

https://mdshock.com/2020/06/16/hideki-sato-discussing-the-sega-saturn/

 

After all, Sega was apparently poised to become the next Disney...

https://www.wired.com/1993/06/sega/

https://kotaku.com/when-sega-wanted-to-take-over-the-world-and-failed-mis-5828939

 

 

These are all part of settlements stemming from successful Tramiel-era Atari Corp. lawsuits against Sega. One such lawsuit was over Sega's use of the 9-pin controller ports, and a number issues with the Sega Genesis / Mega Drive, Sega's failed relationship for Atari to distribute the Mega Drive in North America as the "Tomahawk" or "Genesis", and similarities in architecture to the Atari ST, etc. Sega reached a settlement with Atari resulting in a much-needed influx in capital in the form of Sega investing in Atari, and an agreement between the two to collaborate and share work with each other.

This is why Atari was sending out Lynx Catalogs as late as 1994 showing an Atari Lynx running Sonic The Hedgehog 2:

 

[DegasElite]

Yes! I remember this ad. I used to have a copy of this very flyer. Interesting.

[Video 61]

10 hours ago, Justin said:

 

These are all part of settlements stemming from successful Tramiel-era Atari Corp. lawsuits against Sega. One such lawsuit was over Sega's use of the 9-pin controller ports, and a number issues with the Sega Genesis / Mega Drive, Sega's failed relationship for Atari to distribute the Mega Drive in North America as the "Tomahawk" or "Genesis", and similarities in architecture to the Atari ST, etc. Sega reached a settlement with Atari resulting in a much-needed influx in capital in the form of Sega investing in Atari, and an agreement between the two to collaborate and share work with each other.

This is why Atari was sending out Lynx Catalogs as late as 1994 showing an Atari Lynx running Sonic The Hedgehog 2:

 

when i was told about the settlement of this by atari, they told me they now called sega their partner in the jaguar. they assured me sega would abide by the ruling, and they expected to get the source for sonic to convert to atari. i told them do not hold your breath.

they got the money as far as i know, but no sources to any sega games, no partnership.

jack had the money and power to develop games himself, he would not, he hated games. his reliance on others to support his hardware was his undoing.

 

lance

www.atarisales.com