The SG-1000 was replaced by the Sega Mark III within two years. Sega estimated that the Famicom outsold the SG-1000 by a 10-to-1 margin. While it had sold 160,000 units in Japan, far exceeding Sega's expectations, sales at stores were dominated by Nintendo's Famicom which had been released the same day. Nakayama received permission to proceed with this project, leading to the release of Sega's first home video game system, the SG-1000, in July 1983. president Hayao Nakayama advocated that the company leverage its hardware expertise to move into the home console market in Japan, which was in its infancy at the time. With its arcade business in decline, Sega Enterprises, Ltd. The company retained Sega's North American R&D operation, as well as its Japanese subsidiary, Sega Enterprises, Ltd. A downturn in the arcade business starting in 1982 seriously hurt the company, leading Gulf+Western to sell its North American arcade manufacturing organization and the licensing rights for its arcade games to Bally Manufacturing. – then a subsidiary of Gulf+Western – was one of the top five arcade game manufacturers active in the United States, as company revenues surpassed $200 million between July 1981 and June 1982. In the early 1980s, Sega Enterprises, Inc. The Genesis was succeeded in 1994 by the Sega Saturn. Many games have been re-released in compilations or on online services such as the Nintendo Virtual Console, Xbox Live Arcade, PlayStation Network, and Steam. By the mid-2010s, licensed third-party Genesis rereleases were still being sold by AtGames in North America and Europe. In addition, Tec Toy sold an estimated three million licensed variants in Brazil, Majesco projected it would sell 1.5 million licensed variants of the system in the United States, and much smaller numbers were sold by Samsung in South Korea. Controversy surrounding violent games such as Night Trap and Mortal Kombat led Sega to create the Videogame Rating Council, a predecessor to the Entertainment Software Rating Board.ģ0.75 million first-party Genesis units were sold worldwide. As this contest drew increasing attention to the video game industry among the general public, the Genesis and several of its highest-profile games attracted significant legal scrutiny on matters involving reverse engineering and video game violence. The North American release in 1991 of the Super Famicom, rebranded as the Super Nintendo Entertainment System, triggered a fierce battle for market share in the United States and Europe known as the ' console war'. Contributing to its success was its library of arcade game ports, the popularity of Sega's Sonic the Hedgehog series, several popular sports franchises, and aggressive youth marketing that positioned it as the cool console for adolescents. In Japan, the Mega Drive fared poorly against its two main competitors, Nintendo's Super Famicom and NEC's PC Engine, but it achieved considerable success in North America, Brazil, and Europe. Sega created two network services to support the Genesis: Sega Meganet and Sega Channel. It was released in several different versions, some created by third parties. Several add-ons were released, including a Power Base Converter to play Master System games. It plays a library of more than 900 games on ROM-based cartridges. ĭesigned by an R&D team supervised by Hideki Sato and Masami Ishikawa, the Genesis was adapted from Sega's System 16 arcade board, centered on a Motorola 68000 processor as the CPU, a Zilog Z80 as a sound controller, and a video system supporting hardware sprites, tiles, and scrolling. In South Korea, it was distributed by Samsung as the Super Gam*Boy and later the Super Aladdin Boy. In 1990, it was distributed as the Mega Drive by Virgin Mastertronic in Europe, Ozisoft in Australasia, and Tec Toy in Brazil. Sega released it in 1988 in Japan as the Mega Drive, and in 1989 in North America as the Genesis. The Genesis was Sega's third console and the successor to the Master System. The Sega Genesis, known as the Mega Drive outside North America, is a 16-bit fourth-generation home video game console developed and sold by Sega. Sonic the Hedgehog (15 million, pack-in).

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