SEGA wanted Dreamcast to be compatible with original Xbox

Thursday, 14th January 2010 22:05 GMT By Stephany Nunneley


Rumors abounding for years state that at one time, Microsoft planned to buy SEGA. Being gamers, most of you have heard this rumor.

What you may not have heard, though, was that at one time, SEGA wanted its Dreamcast games to be compatible with the original Xbox.

Ahead of its time back in 1998 with dial-up capabilities, PS2 came along and stole the show, and Dreamcast fell by the wayside.

To try and help counter the system’s demise, SEGA Chairman Isao Okawa paid several visits to Bill Gates, in order to persuade Mr. Microsoft to let Dreamcast games be compatible in his new system, Xbox.

This last ditch effort to save the console failed when talks between the two fell through due to Okawa wanting his games to have online capability, but Microsoft only wanting its own games to have the service.

According to former Microsoft executive Sam Furukawa, to help keep the SEGA afloat, Okawa, forked over $900M of his fortune before he passed away in March 2001 – the same year Japan told then chairman Peter Moore to pull the production plug on the failing console.

SEGA has since focused solely on development and publishing since production of the console ceased.

And the rest, as they say, is bittersweet history.

Thanks, Kotaku.



  1. Psychotext

    Jesus… that’s quite the story.

    #1 5 years ago
  2. Stephany Nunneley

    It made me very sad to type that all out for some reason. I need a tissue.

    #2 5 years ago
  3. Redh3lix

    Dont get me started on the Gamecube :/

    #3 5 years ago
  4. Psychotext


    #4 5 years ago
  5. bluemanrule

    That’s so sad that Microsoft didn’t want to take up Sega’s mantle. Microsoft would be nothing w/o Sega’s online innovations that spilled over into the Xbox. That really frustrates me.

    #5 5 years ago
  6. Retroid


    #6 5 years ago
  7. Bulk Slash

    I recall around that time Sega had shrunk most of the Dreamcast onto a single chip, so presumably they were negotiating putting that into the Xbox.

    If this had gone ahead, Microsoft might never had paid for Shenmue II exclusivity on the Xbox… which means Sega might have sold enough copies of Dreamcast Shenmue II in the US for Shenmue III to be made…

    And now I’m depressed.

    #7 5 years ago
  8. MasterChiefFenix

    I still play my Dreamcast sometimes. Lots of awesome exclusives…more then the amount xbox had, imo.

    #8 5 years ago
  9. Dannybuoy

    One platform, one console, one love.

    #9 5 years ago
  10. Blerk

    More than likely Microsoft didn’t really want to tie a ‘failure’ into its new and shiny thing. The last thing they’d want would be for everyone to think it was just the Dreamcast 2.

    Plus, Dreamcast was rubbish anyway. :-D


    #10 5 years ago

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