3min chapter

Acquired cover image

Short: The Death of Sega

Acquired

CHAPTER

The Origins of the Home Console Business

Nakayama, who was one of the two guys involved in the buyout and Nakayama and Rosen had to get hugely wealthy from this because of how unbelievably little they paid for the equity that by the time they IPO'd it would have been very valuable. He gets worried about what Nintendo's doing and what he sees with the NES. And he says, we should also enter the home console business. It's like a diversification bet. Exactly. They're not dumb. Why would we risk pouring all this capital into the home consolebusiness when we're killing it in the arcades? On the one hand, it's an innovator's dilemma. But on the other hand

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