Jump to content

Sega Invests 90 Million Dollars into Atari - 1994


yeye
 Share

Recommended Posts

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

 

Link to comment
Share on other sites

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 by DegasElite
Link to comment
Share on other sites

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:

 

Atari_LynxCatPlay_4.jpg

Link to comment
Share on other sites

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:

 

Atari_LynxCatPlay_4.jpg

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

VIDEO 61 & ATARI SALES
www.atarisales.com
22735 Congo St. NE, Stacy, MN 55079
651-462-2500

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
 Share

  • Join the Atari Party! :donkey_kong_big:

    How lucky are you that you've finally found this place?
    It's time to join the best kept secret in classic gaming.
    Membership is limited, so let's get started! :wreck-it-ralph:

     

×
×
  • Create New...