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The historical details of these preliminary negotiations were controversial between the two competing suitors. Tom Kalinske said that he and Joe Miller of Sega of America were "quite impressed" with SGI's prototype, inviting their hardware team to travel from Japan to meet with SGI. The engineers from Sega Enterprises claimed that their evaluation of the early prototype had uncovered several unresolved hardware issues and deficiencies. Those were subsequently resolved, but Sega had already decided against SGI's design. Nintendo resisted that summary conclusion, arguing that the real reason for SGI's ultimate choice of partner is that Nintendo was a more appealing business partner than Sega. While Sega demanded exclusive rights to the chip, Nintendo was willing to license the technology on a non-exclusive basis. Michael Slater, publisher of Microprocessor Report said, "The mere fact of a business relationship there is significant because of Nintendo's phenomenal ability to drive volume. If it works at all, it could bring MIPS to levels of volume [SGI] never dreamed of".

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