WI: SEGA resist Electronic Arts Extorsion

Nivek · Aug 16, 2012

After some debated in a videogame forum, i was revealed a jewel of Electronics Arts in the 90's.

When Being pretty famous in the PC sphere in North America, Electronic Arts haven't not console presence whatover, mostly Nintendo with his Draconian Politics to ensure quality and his high Royalties for publishing, when the SEGA Genesis(Megadrive) start to rise in North America in 1990, Electronic Arts ask originally for a development kit for SEGA, but were turned down by the fee for that one, them they 'adquire' one for other and them reversed Engineer it.

Then they go to Japan to Ask with the Leadership of SEGA in japan and give them the 'offer'(or Ultimatum more correctly speaking), if they don't reach an aggrement about royalities per cartidge(2$US over the 8$ to 10$ SEGA ask originally) they will released their 'homemade' kits against SEGA.

As an effect, the SEGA Leadership was in shock, furious and panic, and after long negotiaion was accepted the 'offer'.

But What if... both the Japanese Leadership enter a 'gun-ho' mode and them mention they will not negotiate with thieves and they wiill call to SEGA of America for a good old Lawsuit fight?

Other thing of Interest is that both Nintendo have his own case(with TENGEN/Atari) and SEGA other(with Accolade), maybe a common lawsuit against that?

How Electronic Arts leadership will react to this(specially Trip Hawkins who was his idea the whole affair)?

how a lawsuit will unfold?

those are my doubts(and 'investigation' for a timeline)

Thande · Aug 16, 2012

Knowing EA, this does not surprise me. I think Sega's decision to back down might have been become EA was thought of mainly as a sports games producer at the time and Sega of America initially marketed the Mega Drive/Genesis mainly with sports games--which was a flop, and it wasn't until Sonic in 1991 that the console started to take off.

If Sega of Japan had decided to fight EA and thus overruled Sega of America's decision at this point (rather than a few years later and so screw up their legacy like OTL

) it could have forced the American marketing to move away from sports games, which would probably be a good thing for Mega Drive/Genesis sales in the USA, but might also dampen the impact of Sonic when it comes along, or could even lead to Sonic 1 being rushed out to steady the market and thus not being as good as OTL

Nivek · Aug 16, 2012

Thande said:
Knowing EA, this does not surprise me. I think Sega's decision to back down might have been become EA was thought of mainly as a sports games producer at the time and Sega of America initially marketed the Mega Drive/Genesis mainly with sports games--which was a flop, and it wasn't until Sonic in 1991 that the console started to take off.

If Sega of Japan had decided to fight EA and thus overruled Sega of America's decision at this point (rather than a few years later and so screw up their legacy like OTL ) it could have forced the American marketing to move away from sports games, which would probably be a good thing for Mega Drive/Genesis sales in the USA, but might also dampen the impact of Sonic when it comes along, or could even lead to Sonic 1 being rushed out to steady the market and thus not being as good as OTL

Umm the last one depend of a lot of thing, the year is already 1990, Tom Kaliske was already greeligthed by Hayao Nakayama in the board of CSK(those guys....) for the ' Project Millon-Seller'(aka four step plan who final step was Sonic aka Sega own Mascot) and the sport game strategy was without the knowledge that Electronic Arts will be the main supplier(that was later)

In fact IIRC, EA Exort SEGA of Japan in the back of SEGA of America(who have little power until Sonic Explodes) and the rest is story

But wondering, if SEGA going to SUE EA for 'piracy and damages' how will be the lawsuit? Nintendo have own similar with Atari-Tengen, maybe joining force as Nintendo tradiction of Co-Op with enemies in time of needs?

some more thougs Thande? maybe his thing will affect Trip Hawkins own personal project of an 'American' Console(aka the 3D0)?

Thande · Aug 16, 2012

Nivek said:
But wondering, if SEGA going to SUE EA for 'piracy and damages' how will be the lawsuit? Nintendo have own similar with Atari-Tengen, maybe joining force as Nintendo tradiction of Co-Op with enemies in time of needs?

It would certainly be an interesting one. If they had Sega on their side, Nintendo might be able to crush the Game Genie as well, which has interesting repercussions down the line.

some more thougs Thande? maybe his thing will affect Trip Hawkins own personal project of an 'American' Console(aka the 3D0)?

Seems likely. Maybe if the EA thing kills the sports game strategy, the 3D0 might inherit it Hawkins and co. quit in a huff and go away to do their home thing.

Nivek · Aug 16, 2012

Thande said:
It would certainly be an interesting one. If they had Sega on their side, Nintendo might be able to crush the Game Genie as well, which has interesting repercussions down the line.

Seems likely. Maybe if the EA thing kills the sports game strategy, the 3D0 might inherit it Hawkins and co. quit in a huff and go away to do their home thing.

Umm, with the game genie crushed, the gameshark will be down in the same way, the pokemon 'bragger' will never be the same there,

.

Without SEGA as their 'hardware provider'(with the blacmail, techicaly EA only pay for the value of the cartidge, they recive full money for the whole sale

) that will be a loss of a gold mine for them and with the Computer Market in bad moment(were the 3dfx cards and diablo who give them a breath when both SNES and Playstation were pretty hot) and without sports game(lets say buttefly for the lawsuit make John Madden weary of giving their name to a 'Thieves Company',

) i think EA will have an 'interesting' future.

some other thougs Thande? maybe nintendo will become more draconian with that scandal? maybe they will renegotiated their contrat to avoid that?(even reading that with SONY?)

SOME MORE THOUGS about it

Nivek · Aug 16, 2012

Bump for the night

Some more comment or opinion about it? I want a legal point of view if someone can be gentle to give it.

Kalvan · Aug 21, 2012

The big problem is that SEGA Japan had no real vision whatsoever. Oh, it had people like Naka Yuji and the guy who created Shenmue, but they weren't in any position of management.

Basically, we need David Rosen to have been much more active in his leadership after 1987, and his heirs to have actually cared about the cmpany rather than sold their shares on the open stock market.

But that would have significantly changed things long before Electronic Arts mattered.

Lord Insane · Aug 21, 2012

Thande said:
Seems likely. Maybe if the EA thing kills the sports game strategy, the 3D0 might inherit it Hawkins and co. quit in a huff and go away to do their home thing.

Hm... apparently, part of the reason Jon van Caneghem sold New World Computing to 3DO was because he was interested in making Might & Magic Online, and 3DO had the Meridian 59 thing via their acquisition of Archetype. If, one way or another, 3DO never gets involved with Meridian (for instance, by focusing on sports games), New World Computing might not get sold, at least not to 3DO...
(as one can guess, I am not overly fond of Trip Hawkins. Partly responsible for EA and responsible for 3DO? Is there any phrase better suited than 'Evil Incarnate'?)

Nivek · Aug 21, 2012

Kalvan said:
The big problem is that SEGA Japan had no real vision whatsoever. Oh, it had people like Naka Yuji and the guy who created Shenmue, but they weren't in any position of management.

Basically, we need David Rosen to have been much more active in his leadership after 1987, and his heirs to have actually cared about the cmpany rather than sold their shares on the open stock market.

But that would have significantly changed things long before Electronic Arts mattered.

Yes that is pre POD(SEGA resisting the Extorsion and them Suing EA is my POD now) but still can be interesting in how much Mismanaged was SEGA under the CSK, even with good mid-leadership(Hayao, Tom Kaliske et al)

And about the 3DO... for me the Lawsuit goes and SEGA won it(after a long battle and even help of Nintendo with support for the similar Nintendo vs Tengen/Atari and Nintendo vs Camerica, both cases winning thanks to butterflies) and that make that EA won a eternal hate on SEGA but at the same time.... lost any credibility in the market for a time(Nintendo Refuse giving license for fear, Madden take away his name for the football game,etc) and decide to Support his part Boss Trip Hawkins in the idea of the 'American Console'.

Those details about the 3D0 and EA are interesting, maybe will be butterflies... and about EVIL INCARNATED... i think both Peter Moore and Ritticelo can give him a run for his money