Ailuros said:I don't see why SEGA's possible future would have anything to do, what Microsoft intends to do with it's next generation console.
If ImgTec has or will have an according IP design, Microsoft could approach them without the need for any intermediate third parties.
Has Microsoft yet reached a decision yet wether they'll produce a next generation console or not? I heard Huang raising some indirect doubts about the profitability of such a design, especially under the expected potentiality of PS3.....
edit: typos
I don't think there is any direct connection, but certainly very intresting history between the companies. Dreamcast had a Microsoft OS and the Power VR chip. The person that was in charge of America's Sega division now works for Microsoft. Sega's arcade hardware utilizes Power VR chips. Microsoft and Sega have a chummy releationship via the X-Box, which at one point having bundled two Sega games.