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In 1987, Sega faced another threat to its console business when Japanese computer giant NEC released the PC Engine amid great publicity. With Sega continuing to have difficulty penetrating the home market, Sega’s console R&D team, led by Masami Ishikawa and supervised by Hideki Sato, began work on a successor to the Master System almost immediately after that console launched. Although the Master System was a success in Europe, and later also Brazil, it failed to ignite significant interest in the Japanese or North American markets, which, by the mid-to-late 1980s, were both dominated by Nintendo. This was followed by a European release the next year. In 1986, Sega redesigned the Mark III for release in North America as the Sega Master System. Nakayama was then installed as CEO of the new Sega Enterprises, Ltd.
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In the meantime, Gulf & Western began to divest itself of its non-core businesses after the death of company founder Charles Bluhdorn, so Nakayama and former Sega CEO David Rosen arranged a management buyout of the Japanese subsidiary in 1984 with financial backing from CSK Corporation, a prominent Japanese software company. The SG-1000 was not successful, and was replaced by the Sega Mark III within two years. 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.
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Nakayama advocated that the company leverage its hardware expertise gained through years working in the arcade industry to move into the home console market in Japan, which was in its infancy at the time.
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With its arcade business in decline, Gulf & Western executives turned to Sega of Japan’s president, Hayao Nakayama, for advice on how to proceed. The company retained Sega’s North American R&D operation, as well as its Japanese subsidiary, Sega of Japan. 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. In the early 1980s, Sega Enterprises, Inc., then a subsidiary of Gulf & Western, was one of the top five arcade game manufacturers active in the United States, as company revenues rose to $214 million. The Genesis was Sega’s third console and the successor to the Master System. Sega Mega Drive This is a short wikipedia introduction for the Sega Mega Drive/Genesis. As places in this book may have a copyright by the original owner. You use part of this publication on your OWN RISK though. EVERY part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the publisher. NoCopyright © 2016 by DaddaRuleKonge All rights are NOT reserved. Similar books/PDF`s in the same format are books on NES, SNES, PSX, SMS, N64, Game&Watch, NeoGeo, including several other book in the same vein, from TMNT toys to Point and Click games. I hope you will get some use of this book, and maybe help you in your quest on collecting, or just having fun with this great system. If you are annoyed, or the owner of some of the content i took from you, send an email to me: The book is free, and I hope the information and pictures I use comes under free-use. Find a site that you like and give them some spending money. If you are happy with the book then please look at some of the web-sites on the “Reference Guide” page. I have tried to make the book well presented and easy to look through. I made this book cause` I like to catalog and categorize stuff, and to learn more about the system. DaddaRuleKonge This is book is made for people who collect for or are interested in the Mega Drive/Genesis.