diff --git a/command_event.c b/command_event.c
index 5416538961..733b3a302b 100644
--- a/command_event.c
+++ b/command_event.c
@@ -547,10 +547,6 @@ static void event_deinit_core(bool reinit)
    if(settings->sort_savestates_enable)
       strlcpy(global->savestate_dir,orig_savestate_dir,sizeof(global->savestate_dir));
 
-  /* restore system directory if it was set to <content dir> */
-  if(settings->system_in_content_dir && !strcmp(info->info.library_name,"No Core"))
-      settings->system_directory[0] = '\0';
-  
   /* auto overrides: reload the original config */
    if(global->overrides_active)
    {
diff --git a/configuration.c b/configuration.c
index 1d3383d22f..9336680b3c 100644
--- a/configuration.c
+++ b/configuration.c
@@ -1712,17 +1712,14 @@ static bool config_load_file(const char *path, bool set_defaults)
    if (!config_get_path(conf, "system_directory",
             settings->system_directory, sizeof(settings->system_directory)))
    {
-      RARCH_WARN("system_directory is not set in config. Assuming system directory is same folder as game: \"%s\".\n",
-            settings->system_directory);
-      settings->system_in_content_dir = true;
+      RARCH_WARN("SYSTEM DIR is empty, fill assume CONTENT DIR\n");
+      *settings->system_directory = '\0';
    }
 
    if (!strcmp(settings->system_directory, "default"))
    {
-      RARCH_WARN("system_directory is not set in config. Assuming system directory is same folder as game: \"%s\".\n",
-            settings->system_directory);
+      RARCH_WARN("SYSTEM DIR is empty, fill assume CONTENT DIR\n");
       *settings->system_directory = '\0';
-      settings->system_in_content_dir = true;
    }
 
    config_read_keybinds_conf(conf);
diff --git a/configuration.h b/configuration.h
index 08f14ddd06..bcaa6dc5cc 100644
--- a/configuration.h
+++ b/configuration.h
@@ -303,7 +303,6 @@ typedef struct settings
    char resampler_directory[PATH_MAX_LENGTH];
    char screenshot_directory[PATH_MAX_LENGTH];
    char system_directory[PATH_MAX_LENGTH];
-   bool system_in_content_dir;
 
    char extraction_directory[PATH_MAX_LENGTH];
    char playlist_directory[PATH_MAX_LENGTH];
diff --git a/dynamic.c b/dynamic.c
index cb1d3a9fbc..1f2b032349 100644
--- a/dynamic.c
+++ b/dynamic.c
@@ -652,6 +652,7 @@ bool rarch_environment_cb(unsigned cmd, void *data)
    settings_t *settings = config_get_ptr();
    global_t *global     = global_get_ptr();
    rarch_system_info_t *system = rarch_system_info_get_ptr();
+   char buf[PATH_MAX_LENGTH];
 
    if (ignore_environment_cb)
       return false;
@@ -754,11 +755,12 @@ bool rarch_environment_cb(unsigned cmd, void *data)
          if (!settings->system_directory || settings->system_directory[0] == '\0')
          {
             RARCH_WARN("SYSTEM DIR is empty, fill assume CONTENT DIR %s\n",global->fullpath);
-            fill_pathname_basedir(settings->system_directory, global->fullpath,
-                  sizeof(settings->system_directory));
+            fill_pathname_basedir(buf, global->fullpath,
+                  sizeof(buf));
+
          }
          *(const char**)data = *settings->system_directory ?
-            settings->system_directory : NULL;
+            settings->system_directory : buf;
 
          RARCH_LOG("Environ SYSTEM_DIRECTORY: \"%s\".\n",
                settings->system_directory);
diff --git a/frontend/frontend.c b/frontend/frontend.c
index fd6c48e0d2..d555421bb4 100644
--- a/frontend/frontend.c
+++ b/frontend/frontend.c
@@ -48,10 +48,6 @@ void main_exit_save_config(void)
       if (settings->sort_savestates_enable && orig_savestate_dir[0] != '\0')
          strlcpy(global->savestate_dir,orig_savestate_dir,sizeof(global->savestate_dir));
 
-      /* restore system directory if it was set to <content dir> */
-      if(settings->system_in_content_dir && !strcmp(info->info.library_name,"No Core"))
-         settings->system_directory[0] = '\0';
-
       /* Save last core-specific config to the default config location,
        * needed on consoles for core switching and reusing last good 
        * config for new cores.
diff --git a/retroarch.c b/retroarch.c
index 1f1fddc5ec..557a2c85df 100644
--- a/retroarch.c
+++ b/retroarch.c
@@ -316,11 +316,10 @@ static void set_special_paths(char **argv, unsigned num_content)
    if (!settings->system_directory || settings->system_directory[0] == '\0')
    {
       RARCH_WARN("SYSTEM DIR is empty, assume CONTENT DIR %s\n",argv[0]);
-      fill_pathname_basedir(settings->system_directory, argv[0],
-            sizeof(settings->system_directory));
+      /*fill_pathname_basedir(settings->system_directory, argv[0],
+            sizeof(settings->system_directory));*/
    }
-   else
-      settings->system_in_content_dir = false;
+
 }
 
 void set_paths_redirect(const char *path)
@@ -428,17 +427,6 @@ void rarch_set_paths(const char *path)
          ".cht", sizeof(global->cheatfile_name));
 
    set_paths_redirect(path);
-
-   /* If this is already set, do not overwrite it
-    * as this was initialized before in a menu or otherwise. */
-   if (!settings->system_directory || settings->system_directory[0] == '\0')
-   {
-      RARCH_WARN("SYSTEM DIR is empty, assume CONTENT DIR %s\n",path);
-      fill_pathname_basedir(settings->system_directory, path,
-            sizeof(settings->system_directory));
-   }
-   else
-      settings->system_in_content_dir = false;
 }