No, Nintendo does not own Sega. Sega is a separate company that is currently owned by Sega Sammy Holdings. Sega and Nintendo have a long history of collaboration and competition, dating back to the 1970s when Sega introduced games like Wild Gunman and Shooting Trainer to North American players.

The two companies were also competitors in the home game console market until Sega exited the business in 2001. Since then, Sega has focused on game development and publishing, and their games are available on various platforms, including Nintendo consoles.

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The company is owned by Sega Sammy Holdings. … Sega's association with Nintendo goes back to 1976, when Sega introduced Wild Gunman and Shooting Trainer to North American players. The two were also competitors in the home game console business until Sega left the business in 2001.

Answered from Ajith Choudhary

Is Sega Owned By Nintendo?

As a long-time fan of video games, I've always been curious about the relationship between two iconic gaming companies – Nintendo and Sega. Their rivalry shaped the video game industry for decades. But I wondered, with Sega no longer making consoles, does Nintendo own their former competitor? To satisfy my curiosity, I looked into the history and latest ownership structure of Sega.

What are Nintendo and Sega Best Known for?

Nintendo and Sega are pioneering video game developers:

• Nintendo – Founded in 1889 in Japan and creator of major franchises like Mario, Zelda, and Pokémon. Also released hit consoles like the NES, SNES, GameCube, Switch.
• Sega – Formed in 1960 in Japan and maker of popular games like Sonic the Hedgehog. Developed Genesis, Saturn, Dreamcast gaming systems.

The two companies were fierce competitors throughout the 1980s and 90s console wars until Sega left the hardware business in 2001. Their brands remain iconic in the gaming industry.

What Was the Relationship Between Nintendo and Sega Historically?

Nintendo and Sega had a turbulent relationship as gaming rivals:

• They competed directly in the console market from 1985-2001.
• Sega failed to dethrone Nintendo's market dominance in the 16-bit and 64-bit eras.
• Sega did briefly overtake Nintendo in North America with the Genesis in the early 90s.
• Rival mascots Mario and Sonic symbolized the competition.
• Collaborations were limited until more recent cross-platform projects.

The heated competition drove innovation but ultimately could not sustain Sega's console business.

Who Founded and Currently Owns Sega?

Sega has gone through multiple ownership changes since founding:

• Founded in Japan by Americans Martin Bromley and Richard Stewart in 1960.
• Acquired by Gulf + Western Industries in 1969 who maintained ownership throughout the 80s.
• Became an independent publicly traded company called Sega Enterprises Ltd in 1984.
• Merged with Sammy Corporation in 2004, forming Sega Sammy Holdings which still owns the Sega brand today.

So Sega retains Japanese corporate ownership but is no longer an independent company after various mergers.

What Businesses Does Sega Operate Today Under Sammy Corporation?

Sega still manages many active business units as a subsidiary of Sammy Corporation:

• Development and publishing of multiplatform video games.
• Creation of arcade games for amusement centers.
• Production of toys, figurines, and branded consumer products.
• Licensing of intellectual property and franchises.
• Consulting and services for third party developers.

While no longer selling its own consoles, Sega remains an influential force in gaming.

Does Nintendo Have Any Ownership Stake in Sega Currently?

No, Nintendo has never directly owned any portion of Sega. The two have operated as fully independent competitors throughout their histories.

When Sega exited the console hardware market in 2001, Nintendo did not acquire any of Sega’s businesses. Sega Sammy Holdings continues managing all Sega operations autonomously from Nintendo.

The only connections are licensing agreements for games like Mario & Sonic at the Olympic Games.

Could Nintendo Purchase Sega in the Future?

In theory, Nintendo could attempt to buy Sega from Sega Sammy Holdings, which would give them ownership of major franchises like Sonic, Total War, and Persona.

However, Sega Sammy likely values Sega's gaming business too highly to sell it off. Owning Sega also diversifies their portfolio beyond strictly pachinko and gambling interests.

The only scenario where a sale could occur is if Sega Sammy faces financial duress and needs an influx of capital. But the company currently remains stable and committed to Sega.

Why Did Sega Exit the Console Hardware Business?

Sega made the decision to stop producing its own gaming devices for several reasons:

• Consecutive commercial failures of the Saturn and Dreamcast systems.
• Dominant position of Sony’s PlayStation 2 made competing economically unviable.
• Shifting business dynamics favored third party game publishing.
• Reducing costs and risk by focusing on software only.

Despite some groundbreaking systems, Sega could not sustain further financial losses in the console space.

Does Sega Still Produce Any Gaming Hardware Today?

While completely discontinuing console development, Sega does still engage in limited gaming hardware production:

• Manufactures coin-operated arcade games like UFO Catcher claw machines.
• Partners with other companies to produce novelty controllers and accessories.
• Licenses their properties for branded external products like controllers.

So while no longer developing full gaming platforms, Sega stays active in gaming peripherals.

Could Sega Enter the Console Market Again?

As a subsidiary, Sega likely does not have the resources and independence to launch a major new console to compete against Sony, Microsoft, and Nintendo.

However, Sega could potentially partner with another company in the future to co-develop a console and share costs. This would be lower risk than launching solo.

Absent a dramatic shift, Sega returning as a first-party console manufacturer remains unlikely. Their focus stays on cross-platform game software.

Conclusion

In summary, Nintendo does not own Sega and has never owned the company outright at any point. While fierce rivals throughout the 80s and 90s console wars, the two gaming pioneers have operated independently. Sega is now owned by multinational entertainment corporation Sega Sammy Holdings after previously being a publicly traded company for many years.

Nintendo could attempt to acquire Sega in the future but no indicators suggest such a major merger is imminent. The likelihood of Sega returning to the console hardware business appears slim. While no longer direct competitors, the rich history between Nintendo and Sega remains integral to gaming culture.