diff --git a/makefile b/makefile
index ad180511360..cc793324652 100644
--- a/makefile
+++ b/makefile
@@ -340,9 +340,9 @@ GENIE=3rdparty/genie/bin/$(OS)/genie
 SILENT?=@
 
 ifeq ($(TARGET),$(SUBTARGET))
-SUBDIR = $(TARGET)
+SUBDIR = $(OSD)/$(TARGET)
 else
-SUBDIR = $(TARGET)$(SUBTARGET)
+SUBDIR = $(OSD)/$(TARGET)$(SUBTARGET)
 endif
 
 all: $(GENIE) $(TARGETOS)_$(ARCHITECTURE)
diff --git a/scripts/genie.lua b/scripts/genie.lua
index 0a4044eb76a..5119c2f4210 100644
--- a/scripts/genie.lua
+++ b/scripts/genie.lua
@@ -583,9 +583,9 @@ end
 
 local subdir
 if (_OPTIONS["target"] == _OPTIONS["subtarget"]) then
-	subdir = _OPTIONS["target"]
+	subdir = _OPTIONS["osd"] .. "/" .. _OPTIONS["target"]
 else
-	subdir = _OPTIONS["target"] .. _OPTIONS["subtarget"] 
+	subdir = _OPTIONS["osd"] .. "/" .. _OPTIONS["target"] .. _OPTIONS["subtarget"] 
 end	
 
 if not toolchain(MAME_BUILD_DIR, subdir) then