Difference between revisions of "Sega"

From Sega Retro

(40 intermediate revisions by 3 users not shown)
Line 7: Line 7:
 
| mergedwith=
 
| mergedwith=
 
| mergedinto=
 
| mergedinto=
| headquarters=Ota, Tokyo, Japan
+
| headquarters=Tokyo, Japan
 
}}
 
}}
 
'''Sega''' (セガ) is an international digital entertainment and media company currently headquartered in Ota, Tokyo, Japan. Founded in the mid-1940s, Sega experienced rapid growth in the 1980s and 1990s to become one of the dominant forces in its field. It remains to this day a major player in the worldwide video game industry, covering arcade, console, handheld, mobile and PC markets.
 
'''Sega''' (セガ) is an international digital entertainment and media company currently headquartered in Ota, Tokyo, Japan. Founded in the mid-1940s, Sega experienced rapid growth in the 1980s and 1990s to become one of the dominant forces in its field. It remains to this day a major player in the worldwide video game industry, covering arcade, console, handheld, mobile and PC markets.
  
"Sega" is a trading name used by various iterations of the company since the early 1950s. [[Sega Enterprises]] was the longest corporate name, Sega held all the way up to July of 2000. In July of 2000, Sega became known as Sega Corporation. As of 2004, Sega operates under a collective holding company known as [[Sega Sammy Holdings]]. In April 2015, Sega Corporation was dropped in favor of multiple  sub-divisions; [[Sega Games]], handling the video game consumer business, [[Sega Interactive]] which deals with the development and production of arcade games, and Sega Entertainmen, responsible for the running of commercial venues{{fileref|IR EN 2015-02-12 3.pdf}}.
+
[[Sega Enterprises]] was the first incarnation of Sega, and it became headquartered in Tokyo in 1984, when it was bought by Japanese [[CSK]]. Sega Enterprises became Sega Corporation in July of 2000.
 +
Since 2004, Sega operates under a collective holding company known as [[Sega Sammy Holdings]], formed after a merger between what was then [[Sega Corporation]] and [[Sammy Corporation]]. In April 2015 the Sega side of the business was sub-divided into three; [[Sega Games]], handling the video game consumer business, [[Sega Interactive (Japan)|Sega Interactive]], which deals with the development and production of arcade games, and [[Sega Entertainment (Japan)|Sega Entertainment]], responsible for the running of commercial venues{{fileref|IR EN 2015-02-12 3.pdf}}. Sega's operations are also referred to with regional subsidiaries, which are [[Sega of America]] and [[Sega Europe]] both founded around the mid eighties.
  
In practice, all divisions and groups within the company are generally refferred and known collectively as "Sega". Furthermore Sega's operations are typically referred to by region; [[Sega of Japan]], [[Sega of America]] and [[Sega Europe]] being the main three.
+
In practice, all divisions and groups within the company are generally referred to and known collectively as "Sega".
  
 
==History==
 
==History==
===Formation and early successes===
+
{{MainArticle|History of Sega}}
[[File:SegaBellD SlotMachine.jpg|thumb|260px|Sega's flagship product of 1957, the ''[[Sega Bell]]''.]]
 
Sega claims to have been established in 1951 (and incorporated in 1960){{fileref|AnnualReport2001 English.pdf|page=3}}, however in reality Sega's history begins with the establishment of [[Service Games, Hawaii|"'''Se'''rvice '''Ga'''mes", Hawaii]] originating in 1945 when [[Irving Bromberg]] and his son, [[Martin Bromley|Martin Jerome Bromberg]], formed a partnership with [[James Humpert|James L. Humpert]] to manufacture and distribute slot machines and other coin-operated devices, primarily to US personell stationed across Asia in the years after World War II. They called the partnership Service Games (i.e ''military'' service) and based their operation in Honolulu.
 
  
Irving Bromberg, the father, brought to the young company a reputation for being an innovator in coin-machine technology; as the founder of the Irving Bromberg Co. (established in 1933), he brought some of the first vending machines to Brooklyn, Boston and Washington, D.C. He also founded a business known as Standard Games Co. in Los Angeles, California, in 1934 for the civillian market. However, he was aging and his son assumed much of the management of Service Games. Bromley and Humpert were employed in the U.S. Navy Shipyard at Pearl Harbor during World War II, and had worked together in coin-operated enterprises that called upon the technical competence of the senior Bromberg.
+
==Business interests==
[[File:Sega enterprises tokyo airport.jpg|thumb|260px|Sega Enterprises Ltd. Tokyo office, as seen in 1965.]]
+
===Amusement machines===
The United States Congress of the Gambling Devices Transportation Act of 1951 banned slot machines on military bases within the territory of the United States, forcing Service Games to look into other avenues to market and sell their products. In February 1952, Bromley sent [[Richard Stewart]], a Service Games salesman, and [[Raymond Lemaire]], a mechanic, to Japan to promote and expand sales of Service Games machines on U.S. military reservations.
+
[[File:Ufocatcher9.jpg|thumb||''[[UFO Catcher 9]]'', one of the latest in the line of lucrative ''UFO Catcher'' machines.]]
 +
For most of its existence, Sega has been catering for the amusement industry, and alongside [[Namco]] and [[Taito]], was seen as one of the major players in the Japanese market during the second half of the 20th century. While the sector has declined from its heights in the 1980s and early 1990s, Sega remains a prolific manufacturer of arcade machines, placing a specific emphasis on its home market of Japan.
  
The result, [[Service Games, Japan]], and over the next few years, a network of factories sprung up across South East Asia to cater for American troops stationed in the Orient. Service Games also began selling its machines in Europe, becoming one of the major players in the worldwide slot machine market.
+
The bulk of Sega's amusement machine business involves the creation of titles that are not easily replicated at home ranging from 1985 ''[[Hang-On]]'' to recent games like ''[[Maimai]]''. For Japanese users, Sega has placed a high value on the use of the internet, allowing players to compete between arcade venues and keep track of their status through apps for mobile devices or physical cards.
  
By the early 1960s a series of money-making sell-offs left only the Japanese branch of Service Games still in operation, and in May 1960 had split into two entities, [[Nihon Goraku Bussan]] (distribution) and [[Nihon Kikai Seizo]] (manufacturing). The "Service Games" brand was no longer in use, but a condensed brand name was used by the latter - "Sega", first seen paired with the successful [[Sega 1000]] jukebox.
+
Sega's heritedge was built on gambling machines, however systems dealing with real money can be subject to heavy regulations. As a result, since the mid-1980s Sega has instead focused on the concept of "medal" games, often offering the similar risk versus reward gameplay seen in the gambling sector, but which which accept and distribute currency specific to a venue, with no cash value outside of the premises.
  
===The merge===
+
While the arcade industry has declined significantly in Western markets since its peak in the 1980s, Sega continues operate amusement businesses in the US and Europe, distributing products by third-party manufacturers and maintaining (and refurbishing) the company's older back-catelogue of racing and shooting games. Popular releases such as ''[[Daytona USA]]'' and ''[[Sega Rally Championship]]'', despite being more than two decades old, are still often seen in active service and are staples of what little remains of the arcade scene. Likewise, these branches continue to oversee the development of new releases targeting a Western audience.
The Korean war had seen American businessman and former Air Force officer [[David Rosen]] stationed in Japan, and having fallen in love with the country, returned in 1954 to establish Rosen Enterprises, Inc.{{fileref|NextGeneration US 24.pdf|page=9}}. Originally an art exporting business Rosen's company stumbled upon a surprise hit when it began to import coin-operated instant photo booths from America, tapping into the Japanese need for photographs as proof of identity. Talks with Bromley at Nihon Goraku Bussan proved fruitful, and the two sides merged in 1965, becoming Sega Enterprises Ltd. ("Sega borrowed from the Nihon Goraku Bussan side, and "Enterprises" coming from Rosen).
 
  
As Japanese living standards began to rise, Rosen moved into the arcade business, importing electro-mechanical games from Chicago. Soon Rosen had a presence in 200 Japanese arcades, and he sought out competitors in the interests of merging. Talks with Bromley at Nihon Goraku Bussan proved fruitful, and the two sides became Sega Enterprises Ltd. in 1965 ("Sega" borrowed from the Nihon Goraku Bussan side, and "Enterprises" coming from Rosen).
+
In addition to creating arcade video games, Sega has ventured into other areas of the amusement business, from change machines to motion simulators. Since 1985 Sega has been producing ''[[:Category:UFO Catcher|UFO Catcher]]'' machines; popular "crane" games which have been a permanent fixture of Japanese game centres since the late 1980s. Sega have a significant stake in this market, for as well as constructing the cabinets themselves, the company also sources and distributes the prizes.
  
==Gulf+Western==
+
The company also produces "ride-on" machines for younger children, although few of these models have ever left Japan.
[[File:Periscope flyer1.jpg|thumb|260px|Flyer for Sega's first original coin-op, ''[[Periscope]]''.]]
 
Equipped with brand recognition, strong distribution channels and a large arcade presence, Sega's import business boomed, and soon found itself producing its own games, starting with the 1966 smash hit, ''[[Periscope]]''. Proving that a non-American company could make gains in the coin-op industry, Sega was acquired on May 3, 1969 by media conglomerate [[Gulf+Western]]. This opened the door for Sega to enter other arenas, importing both American-made pinball tables (before manufacturing its own starting with [[Winner]] in 1972) and [[Rock-Ola]] jukeboxes.
 
  
Being a company involved in the business of entertainment, it was only a matter of time before Sega would look into video games. Seeing the success of [[Atari Inc.|Atari]]'s ''[[wiki:Pong|Pong]]'', Sega branched out into video game importing and later development, allying themselves with [[Gremlin Industries]] in North America. As electro-mechanical games were displaced, Sega began to make a name for itself through games such as ''[[Turbo]]'' and ''[[Zaxxon]]'', as well as through distributing ''[[Frogger]]'' in the States.
+
===Video games===
 +
[[File:Sonic1 title.png|thumb|right|Title screen of ''[[Sonic the Hedgehog (16-bit)|Sonic the Hedgehog]]'', featuring the company's mascot.]]
 +
Sega has been directly involved in the home "consumer" video game market since 1983, doubling up in the first eighteen years as a hardware manufacturer. During this time the company has created a number of lucrative franchises which are still actively maintained to this day, most notably the ''Sonic the Hedgehog'' series whose eponymous lead character has become a mascot for the company.
  
Seeing the potential, 1984 saw Rosen and a group of outside investors (including [[Hayao Nakayama]], [[Shoichiro Irimajiri]] and the chairman of CSK, [[Isao Okawa]]) bought back Sega, and as an independent company once more, continued to expand rapidly into the 1980s.
+
Sega supports home video game consoles and handhelds from platform holders [[Nintendo]], [[Sony]] and [[Microsoft]]. It emerged itself with the PC market with [[SegaSoft]] and [[Sega PC]] in the earlier years, but more recently supports it by Western subsidiaries like [[The Creative Assembly]], [[Sports Interactive]] and [[Relic Entertainment]]. In 2000, Sega started it's mobile phone development with [[Sonic Cafe]] and that market became the companies primary focus in recent years. Titles such as ''[[Chain Chronicle]]'' and ''[[Puyo Puyo!! Quest]]'' are among the best performing titles.{{fileref|AnnualReport2016 English.pdf|page=43}}
  
==Video game consoles==
+
The company has a number of internal development studios based in Japan, with resources often shared between consumer and arcade projects. Local development in [[Sega of America]] and [[Sega Europe]] are also part of the operation. Unlike Sega of Japan, they exclusively work with external developers either by contract or owning the developer as a subsidiary.
1983 marked a turning point for Sega. after it entered an increasingly crowded Japanese video game console and home computer market with its latest invention, the [[SG-1000]] (and computer counterpart, the [[SC-3000]]). Between 1983 and 1985 many significant recruitments were made for this new "consumer products" division that would shape the company's image in the decades that followed, and while the SG-1000 was unable to unseat [[Nintendo]] and their Family Computer, support from its arcade business kept them firmly in the game. It was also one of the few Japanese systems to make it across the border, making a limited mark on Australia, New Zealand, France, Italy, Sweden and parts of Asia.
 
[[File:MDAdd-ons.jpg|thumb|260px|The [[Sega Mega Drive]] with it's many add-ons: the [[Sega Mega-CD]], [[32X]], [[Mega Modem]] and [[Mega-CD Karaoke|Karaoke]].]]
 
Next came the [[Sega Mark III]] in 1985, a more competitive system ready to take on Nintendo coupled with a plan to launch overseas. In its redesigned [[Sega Master System]] form, Sega started to become a household name, appearing in various guises not only in Japan, but across North America, Europe and Brazil. While a distant second in Japan and the US, the Master System triumphed in smaller markets, not least to its unique ties to Sega's industry-leading arcade divisions.
 
  
Sega entered perhaps its most successful period of its then 40 year history with the 16-bit [[Sega Mega Drive]] in 1988, capturing not only the lion's share of the market in Europe, but regularly unseating Nintendo's dominance in the US. The invention of company mascot [[Sonic the Hedgehog]] and [[Sonic the Hedgehog (16-bit)|his ground-breaking video game]] revolutionised the industry at large, but did little to impress its Japanese homeland. Extensions in the [[Sega Mega-CD]] and [[Sega 32X]] struggled to gain traction, but the company saw reasonable success through it's full colour portable handheld system, the [[Sega Game Gear]].
+
With the purchasing of Index Holdings in the summer of 2013, [[Atlus]] now resides as part of the Sega-Sammy family and also share resouces with Sega's Japanese and American headquarters.
  
The early 1990s also saw Sega as a driving force behind video game content regulation, following the North American controversies surrounding ''[[Night Trap]]'' and ''[[Mortal Kombat]]''. Sega's contribution in the US was the [[Videogame Rating Council]] - a system to highlight potentially inapprorpate games for younger children. Sega of America were at the forefront of this debate, and [[Tom Kalinske]] was happy to accept the eventual establishment of the [[Entertainment Software Rating Board]], which has been the de-facto regulator of North American video games since 1994. Elsewhere Sega pushed its own ratings systems, and despite the creation of the Japanese [[Computer Entertainment Rating Organization]] 2002, continues to add extra warnings (entirely of its own accord) for violent content.
+
Currently popular Sega franchises are ''[[:Category:Sonic the Hedgehog|Sonic the Hedgehog]]'', ''[[Phantasy Star Online]]'', ''[[:Category:Yakuza|Yakuza]]'' (''Ryu ga Gotoku''), ''[[:Category:Hatsune Miku|Hatsune Miku: Project DIVA]]'' and ''[[:Category:Puyo Puyo|Puyo Puyo]]'' series.
[[File:GLocR360 Arcade Cabinet.jpg|thumb|right|260px|The [[R360]] cabinet can rotate 360 degrees on three axes.]]
 
With the 32-bit [[Sega Saturn]], Sega's console fortunes were reversed in Japan, unfortunately at the expense of everywhere else. While initially strong, the Saturn tore apart the firm in the US, and led to the company's first recorded loss for the year ending March 1998.
 
  
Attempts at revival were made with the internet-focused [[Sega Dreamcast]] the following November, but despite a strong selection of games and a devoted fanbase, the company found itself unwilling and unable to compete against its peers in the [[PlayStation 2]], [[Xbox]] and [[Nintendo GameCube]]. In January 2001 the firm abandoned its home console ambitions, focusing instead as a third-party developer and publisher.
+
===Entertainment venues===
 +
[[File:Joypolis Tokyo 3.jpg|thumb|[[Tokyo Joypolis]], the first indoor theme park opened by Sega.]]
 +
In addition to producing amusement machines, Sega owns a large portfolio of properties in which consumers can access them. Sega opened the first of its many Japanese "game centers" in the late 1960s, likely peaking at 870 sites across Japan in 1999{{fileref|AnnualReport1999 English.pdf|page=14}}, including an array of [[Joypolis]] indoor amusement parts, [[Sega World]] and [[Club Sega]] amusement arcades, and a number of spa and leisure facilities. It also operates the [[Orbi]] indoor nature attraction, developed in conjunction with BBC Worldwide.
  
==Arcades==
+
In addition, Sega owns and operates [[Sega Republic]] in the UAE and a small number of venues in Taiwan and China. Cashflow problems, its merger with Sammy and subsequent restructuring in the mid-2000s led to Sega parting with many of its overseas entertainment venues, including the [[GameWorks]] chain in the US, Sega Worlds stationed in Australia and South Korea, and its numerous arcades spread across Europe, most notably the Joypolis-inspired [[SegaWorld London]] in 1999.
[[File:Joypolis Tokyo.jpg|thumb|260px|[[Tokyo Joypolis]], the first indoor theme park opened by Sega.]]
 
In the 1980s and 1990s arcade scene however, Sega went from strength to strength, leading the market with hits such as ''[[Space Harrier]]'', ''[[OutRun]]'' and ''[[After Burner]]'' before becoming a driving force behind 3D gaming in ''[[Virtua Racing]]'' and the massively successful ''[[Virtua Fighter]]''. It also saw success in other areas - its ''[[UFO Catcher]]'' line of crane games continues to this day, and its networked arcade franchises such as ''[[:Category:World Club Champion Football|World Club Champion Football]]'' remain unrivalled.
 
  
Since the 1960s Sega has been opening its own arcade centres, peaking in the 1990s when hundreds of ''[[Hi-Tech Land Sega]]'', ''[[Sega World]]'' and ''[[Club Sega]]'' venues were spread across Japan. It also operates its own indoor [[Joypolis]] theme parks, and has formerly laid claim to resorts and restaurants. Sega arcades have also operated (albeit at a much smaller scale) in the US and across Europe, peaking with its line of [[GameWorks]] arcades in the early 2000s.
+
The existence of dedicated venues has allowed Sega to create much larger projects over the years, including indoor rides and movie theaters. They have also proved convenient spots for location testing of arcade machines.
  
However, as arcades began to decline in the late 1990s, so too did Sega focus in the arcade market. Forced to innovate to keep customers, Sega's operations have significantly downsized in recent years, however it still runs the largest chains of arcades in Japan and continues to influence its home video game endeavours. Equally many of its arcade hits such as ''[[Daytona USA]]'' and ''[[Sega Rally Championship]]'' remain in active service more than twenty years after release.
+
===Consumer products===
 +
Throughout its history, Sega has occasionally ventured into the toy and consumer electronics markets. Of particular note is its takeover of Yonezawa Toys in 1994, leading to the creation of what would eventually become known as [[Sega Toys]] in 1998. As the largest post-War toy manufacturer in Japan, Yonezawa's incoporation into the Sega family meant that, for a time, Sega was a market leader in the Japanese toy market, with strong links to [[Hasbro]] in the United States. However, while Sega Toys continues to exist, it is currently managed as a separate entity within Sega Sammy Holdings.
  
==Merger with Sammy==
+
Sega has also produced karaoke equipment ([[Prologue 21]]), a digital camera ([[Digio SJ-1]]), a television ([[Sega-Vision]]), PDAs ([[IR 7000 Communicator]]) and has published films on VHS cassette. It has created films and cartoon shows with partners such as [[TMS Entertainment]], and its properties have been used to create books, albums, board games and audiobooks.
[[File:SegaHeads 2001.jpg|thumb|260px|Big names at Sega, circa 2001 (clockwise from top left): [[Rikiya Nakagawa]], [[Yu Suzuki]], [[Toshihiro Nagoshi]], [[Kenji Sasaki]], [[Shun Arai]], [[Tetsuya Mizuguchi]], [[Tetsu Kayama]], [[Yuji Naka]], [[Yukifumi Makino]], [[Hisao Oguchi]] and [[Noriyoshi Oba]].]]
 
The demise of the Dreamcast saw Sega focus its efforts as a third-party video game manufacturer, aiming to be the largest of its kind by March 2004{{fileref|Edge UK 104.pdf|page=7}}. But financial troubles eventually saw it merged with pachinko-firm [[Sammy]], leading it to operate under a collective [[Sega Sammy Holdings]] holding company.
 
  
In the third party era, Sega has had little mass market success in the western market, with the exception of the long-standing ''[[Sonic The Hedgehog]]'' franchise which has endured wide flunctations of quality. On the flip-end, Sega has been successfull at carving out niches with the western PC strategy market, as well mobile and arcade titles aimed at Asian audiences.
+
Sega's properties have also been turned into theater productions, with at one point bi-annual shows centred around ''[[Sakura Taisen]]'' and more recently, ''[[Phantasy Star Online 2: On Stage]]''.
  
 +
==Notable products==
 +
<gallery widths="200px" heights="200px">
 +
SegaBellD SlotMachine.jpg|''[[Sega Bell]]'' (1957), rebranded ''High Top'' slot machines from Mills, and the first product to bear the "Sega" name.
 +
Sega1000 Jukebox.jpg|''[[Sega 1000]]'' (1960), Sega's first home-grown product. Cheap jukeboxes negating the need for imports in Japan.
 +
Periscope flyer1.jpg|''[[Periscope]]'' (1966), Sega's first successful electro-mechanical arcade machine.
 +
Zaxxon Arcade US Cabinet.jpg|''[[Zaxxon]]'' (1982), a staple of US arcades in the early 1980s.
 +
UFOCatcher.jpg|''[[UFO Catcher]]'' (1985), the genesis of crane games in Japan.
 +
MDAdd-ons.jpg|The [[Sega Mega Drive]] (1988), pictured here with its many add-ons: the [[Sega Mega-CD]], [[32X]], [[Mega Modem]] and [[Mega-CD Karaoke|Karaoke]].
 +
VirtuaRacing Arcade Cabinet Deluxe.jpg|''[[Virtua Racing]]'' (1992), milestone in the video game racing genre.
 +
PrintClub cabinet.jpg|''[[Print Club]]'' (1995), a phenomeon amongst Japanese teenagers in the late 1990s.
 +
Dreamcast.jpg|The [[Dreamcast]] (1998), Sega's online-enabled "super console", and an end of an era.
 +
</gallery>
  
{{rewrite}}
+
==Key figures==
===Mega Drive/Genesis===
+
*[[Irving Bromberg]], [[Martin Bromley]] and [[James Humpert]], founders of Service Games in 1945.
 +
*[[David Rosen]], founder of Rosen Enterprises and chairman of Sega until 1996.
 +
*[[Isao Okawa]], president of [[CSK]] and later Sega, credited with saving Sega from bankruptcy in 2000 with $900 USD of his own fortune.
 +
*[[Hajime Satomi]], current head of Sega-Sammy Holdings.
 +
*[[Tom Kalinske]], head of [[Sega of America]] between 1990 and 1996, credited with establishing Sega as a market leader in the US.
 +
*[[Yu Suzuki]], star developer of [[Sega AM2]], responsible for numerous milestones in gaming history including ''[[Space Harrier]]'', ''[[OutRun]]'', ''[[Virtua Racing]]'', ''[[Virtua Fighter]]'' and ''[[Shenmue]]''.
 +
*[[Yuji Naka]], [[Naoto Ohshima]] and [[Hirokazu Yasuhara]], founding members of [[Sonic Team]] and collectively responsible for ''[[Sonic the Hedgehog (16-bit)|Sonic the Hedgehog]]'' and its immediate sequels.
 +
*[[Toshihiro Nagoshi]], notable creator of ''[[Daytona USA]]'', ''[[Super Monkey Ball]]'' and the ''[[Yakuza]]'' series of games.
  
 
+
==Gallery==
Looking at the string of successes on the arcade [[:Category:System 16 games|System 16]] platform, Nakayama decided that their follow-up system should also be based on 16-bit hardware. Initially codenamed “Mark V,” the name would eventually change to Mega Drive, the name meant to emphasize the positive aspects of the platform: “Mega” for the superiority of the console, and “Drive” for the speed it possessed. Knowing that Nintendo was taking its time in creating a 16-bit successor to the NES/Famicom, Sega hoped that the technological superiority of their system, along with an early lead, would be enough to knock Nintendo from the top spot and gain traction before the 16-bit wars would truly begin.
+
<gallery>
 
+
Sega logo 1960s.svg|Logo pre-1976
 
+
SegaOperations1970.pdf|Sega operations, circa 1970
 
+
</gallery>
 
 
[[File:Alnilsencc.png|thumb|260px|[[Al Nilsen]], Vice-President of Sega of America, showing off ''Michael Jackson's Moonwalker''.]]
 
Knowing they had their work cut out for them, Sega hired [[Michael Katz]] as the new President of Sega of America, only one month after the console had come out. Given the set goal of selling one million Genesis units, Katz knew that their current line-up wasn't enough, especially since Nintendo still had their grasp on third-party support. Instead of relying on established names in the video game industry, he instead looked towards licensing deals with well-known personalities in pop culture. One of those approached was Joe Montana, who would become the face of the appropriately-titled ''[[Joe Montana Football (Mega Drive)|Joe Montana Football]]''. Though future installments of the series would be done by [[BlueSky Software]], the first was worked on by none other than [[Electronic Arts]], who was working on what would become the first successful ''[[John Madden Football]]'' at the same time. This partnership led to EA offering their support to the Genesis, making the system a powerhouse when it came to sports titles.
 
 
 
Soon, other prominent deals were forged, including ''[[Super Real Basketball|Pat Riley Basketball]]'', ''[[Super League|Tommy Lasorda Baseball]]'', and ''[[Evander Holyfield's "Real Deal" Boxing]]''. But perhaps the biggest coup was Sega getting the rights to create a game based on the biggest pop star of the era, ''[[Michael Jackson's Moonwalker]]''. With these names in place, Sega began the first of their aggressive marketing campaigns, targeting their competition with the slogan “Sega Does What Nintendon't.”
 
 
 
In Japan, development to expand the Mega Drive's software lineup continued, knowing that people wanted more than just an arcade machine for a home platform. Creating such varied titles as ''[[Shining in the Darkness]]'' and ''[[Castle of Illusion Starring Mickey Mouse]]'', the company wanted to prove that players could experience a variety of different genres on a Sega system. Sega also partnered with various home computer companies like [[Tecnosoft]] (''[[:Category:Thunder Force|Thunder Force]]'', ''[[Herzog Zwei]]''), [[Telenet Japan]] (''[[Valis]]'', ''[[Granada]]'', among many others), and [[NCS]] (who would start their flagship ''[[Langrisser]]'' franchise and various other games like ''[[Shove It!]]'') to give the console support from that market. By the time the platform was ready to be released in Europe for the winter of 1990, there were plenty of titles to insure a steady stream of quality software over the next few months. By building on to the success the Master System was able to achieve in the region, the Mega Drive was able to repeat that performance. Europe's success was fueled by their own unique advertising strategies, including the long-running “To be this good takes AGES / To be this good takes SEGA.”
 
 
 
====Sonic the Hedgehog====
 
 
 
:''Main Article: [[sonic:Game Development:Sonic the Hedgehog (16-bit)|Game Development:Sonic the Hedgehog (16-bit)]]''
 
[[File:Sonic1 box jap.jpg|thumb|260px|Boxart to the original ''Sonic the Hedgehog''.]]
 
Even though the Mega Drive was a hit in Europe, the system was still not able to pick up the steam Sega was hoping for in Japan and North America. Even though it was doing better than the other competitors of Nintendo, the house that Mario built was still the undisputed champion, made clear by the immediate success of the Super Famicom once it was released in Japan in 1990. Understanding the strength of a corporate mascot and how it could help define a brand, Sega began looking internally, starting a contest to come up with their version of Mario and Mickey Mouse. Though Alex Kidd was often thought of as Sega's mascot, the franchise did not define the company, as the games were always met with lukewarm success.
 
 
 
Making clear what they were looking for, the search was on, with numerous development groups within looking to create that iconic character that would thrust Sega into the stratosphere. One of the men who took up this call was [[Naoto Ohshima]]. Working within Sega's [[Sonic Team|AM8]] division, he came up with a number of character designs, including a Bart Simpson-esque human, a rabbit, a patriotic wolf, and a human character that would eventually be transformed into [[sonic:Dr. Eggman|Dr. Eggman]]. However, it was a blue hedgehog originally named Mr. Needlemouse that would prove the favorite. Becoming [[sonic:Sonic the Hedgehog|Sonic the Hedgehog]], Ohshima teamed up with programmer [[Yuji Naka]], the two having previously worked on the ''Phantasy Star'' titles. Pitching their ideas to Sega of Japan, it wouldn't take long before the project would be approved and production went underway. With [[Hirokazu Yasuhara]] pulled in to help design and direct, all the pieces were in place.
 
 
 
When news reached Sega of America about the project, they immediately began to take steps to try and alter the course. Initially looking for an outside designer to create a character they felt better suited American tastes, they were afraid the game would bomb. Michael Katz, when he first learned of Sonic, couldn't fathom how to market a game based on a hedgehog, an animal that hardly anyone in the United States had heard of. Even though they looked for alternatives, the path was set at Sega of Japan, the company banking on the success of the game.
 
 
 
[[File:SonicTeam20.jpg|thumb|260px|The original core members of Sonic Team, 20 years later.]]
 
In November 1990, [[Hayao Nakayama]] approached [[Tom Kalinske]], former president of Mattel, to be in charge of SOA. Taking the job, Tom took some time to get his bearings, looking over the industry and determining the strengths of what Sega had to offer. In March, 1991, Tom, accompanied by [[Shinobu Toyoda]], went to the Sega of Japan brass to present his plan. Knowing that Nintendo would come out of the pen with guns blazing, the first thing Kalinske wanted to do was drop the price point of the Genesis to $149.99, making it fifty dollars cheaper than how much the Super Nintendo would be released at. Combined with even more aggressive advertising directly attacking Nintendo, Kalinske also knew that Sonic, the way it was turning out, would be able to go up directly against ''[[wiki:Super Mario World|Super Mario World]]''. Because of this, he wanted the current pack in title—''[[Altered Beast]]''—to be replaced by Sonic come the holiday season. Nakayama, at hearing this plan, went mad, saying they were crazy to suggest to take a loss on the hardware while at the same time including the one game that would have such a high profit margin. Storming out of the office, however, he paused at the door saying that if they felt it was the only way to beat Nintendo, to go ahead and do it.
 
 
 
With the game localized by Sega of America (much to the chagrin of Sonic Team), the original ''[[sonic:Sonic the Hedgehog (16-bit)|Sonic the Hedgehog]]'' was released in the United States on June 23, 1991. Almost immediately, the game became a success despite early efforts to downplay the game. Partnered with an advertising campaign in the fall and winter of 1991 that portrayed Sonic as the hip, cool alternative to Mario, units began moving at an incredible rate. Released in Japan a month later, the game was only a moderate success in its native country, unable to topple Nintendo's dominance. However, the strength of the game, along with the advertising strategy, was enough for Sega to begin taking the market by storm. Coupled with Nintendo being unable to make exclusivity agreements with third-parties anymore (a legal decision finding the practice to be unlawful), the market was able to open in a big way, with more companies deciding to develop games on the once-fledgling 16-bit console. By April 1992, Sega had secured sixty percent of the 16-bit market share in the west, and in November of that year, Sega would achieve its biggest success, with ''[[Sonic the Hedgehog 2 (Mega Drive)|Sonic the Hedgehog 2]]'' selling over six million units. Even in 1994, the Mega Drive was still responsible for over fifty percent of all 16-bit systems sold. Though Nintendo would catch up by the time the 16-bit console wars ended, Sega was always able to maintain a slight edge over Nintendo, at least in the United States and Europe, the two juggernauts being neck and neck through the mid-1990s.
 
 
 
 
 
===Sega Saturn===
 
 
 
:Main Article: ''[[Sega Saturn]]''
 
[[File:Saturn.jpg|thumb|260px|The 32-bit Sega Saturn.]]
 
Even as Sega basked in the success of the Mega Drive, both sides of the Pacific were looking ahead to the future, knowing that the 16-bit era, just as the 8-bit one beforehand, would have its time to end. Sega of America was the first to think about what the future would hold, having formed a working partnership with Sony during the Sega CD era. As the two would work together on producing titles for the CD add-on, it wasn't long before the two sides starting talking about the future of gaming. Mickey Schulhoff and Olaf Olafsson of Sony spoke with Kalinske about the possibility of a joint venture between the two companies to pool resources and create the next generation of consoles, though the plan was vetoed by Sega of Japan before it could fully get off the ground.
 
 
 
Instead, Sega of Japan's R&D division began their own internal efforts into deciding just what the next generation of Sega would provide. Exploring their options, work began on two separate consoles, though only one would reach a point where it was ready for the masses. The first of these, codenamed Project Jupiter, was intended to be a cartridge-based system, similar to what the Nintendo 64 would become. The second, known as Project Saturn, is what eventually evolved into the final [[Sega Saturn]]. Work on both of these projects began in 1993, and while Sega of Japan informed Sega of America of the Saturn's progress, they kept the existence of the Jupiter from their western counterparts.
 
 
 
This secrecy was just yet another example of the growing rift between the two sides of Sega Enterprises. Upset that their successes nowhere near matched their American counterparts, Nakayama began to constantly compare the two in upper management meetings. The CEO would ask his peers time and again why they couldn't replicate what the U.S. was doing, especially since they had been around longer. This animosity continued on, with those working at SOJ determined to prove themselves. At the same time, SOA was contacted by Jim Clark of [[Silicon Graphics]] Inc, who had just purchased a company with technology they felt would be perfect for a video game console. Interested, SOA contacted SOJ, telling them about the chipset SCI was working on. Flying over, they instructed the company to improve certain aspects, and once they did so a second meeting was arranged. Still deemed unsatisfactory by Sega of Japan, SCI turned elsewhere, eventually their hardware becoming part of the Nintendo 64.
 
 
 
With SOA eventually learning of the Jupiter's existence, it looked for a moment that the system would be the way Sega was going to take things, even ordering the [[Sega Technical Institute]] to develop the next [[sonic:Sonic X-treme|Sonic game]] on the proposed hardware, though no specs were even solidified. It wouldn't be much longer before the project was canceled, spurred by a hardware failure on the part of NVIDIA. Instead, all focus moved to the Saturn project.
 
 
 
[[File:VirtuaFighterJPArcadeFlyer1.jpg|thumb|260px|'The original ''Virtua Fighter'', which played a key role in the Sega Saturn's success in Japan.]]
 
The project was once again led by Hideki Sato, who was in charge of the 27-member “Away Team,” responsible for the design of the Saturn. Initially designed as a 2D powerhouse, the final version of the hardware sported dual Hitachi processors, to also allow 3D capabilities, supposedly come about by a demand from the Sega brass in response to what the [[Sony PlayStation]] was purporting to be. Either way, Sega wanted to make sure their console appealed to every region of the word, not satisfied with having their systems only succeed in specific regions, such as the Master System in Europe and the Mega Drive in the United States.
 
 
 
In November 1994, the Sega Saturn was released in Japan, only six weeks before the PlayStation and with very few release titles. Almost immediately, third party developers were put off by the difficulty of programming on the system. With no Developer's kit to speak of and having its design based on quadrilaterals as opposed to the industry standard triangle, many developers turned to Sega's competitors to design games. However, Sega still had a trump card up their sleeve, at least in Japan—the arcade market.
 
 
 
Even though their home systems hadn't made much of a dent in Japanese consumers, the string of arcade titles helped keep Sega relevant in their homeland. Though ''[[Virtua Racing]]'' was actually the first title on Sega's new [[Sega Model 1]] arcade board, it was 1993's ''[[Virtua Fighter]]'' that became a cultural phenomenon in Japan. The brainchild of [[AM2]]'s [[Yu Suzuki]] (who had been responsible for earlier titles like ''Hang-On'' and ''Space Harrier''), it met with immediate success. Followed with ''[[Virtua Fighter 2]]'' only a year later, Sega knew the best way to support their 32-bit system was to port their biggest arcade hit. Having ''Virtua Fighter'' be one of the launch titles, the Saturn was able to establish itself in Japan in ways the Mega Drive was never able to accomplish.
 
 
 
Meanwhile in the United States, Sega of America was busy planning the launch of the system stateside. Originally announced to be released on “Saturnsday” (September 2, 1995), the launch date was unexpectedly pushed up five months ahead of schedule, the move a direct response to Sony's PlayStation intending on being released only one week after the September release of the Saturn, with a price tag one hundred dollars cheaper. Though the pieces for a successful launch weren't in place, the Saturn was rushed out for select retailers, hoping the lead time would ensure Sega's place in the home gaming world.
 
 
 
Only 80,000 Saturn's were sold before the release of the PlayStation, while the release of Sony's console became an instant hit, beating the Saturn's share in the North American market in a matter of days. Ironically, the notion of using hip advertising aimed at a demographic that wouldn't otherwise have played a videogame helped out Sony, Sega's American marketing instead becoming a surreal mixture of imagery that attempted to stay cool and attack the competition, but instead had an almost creepy feel that no longer talked of the merits of the games.
 
 
 
[[File:Segata.jpg|thumb|260px|The greatest Sega Master, Segata Sanshiro.]]
 
Back in Japan, while the Saturn was not doing the numbers of the PlayStation, it was still doing phenomenal for a Sega console in the region. Because of Sony's preference for 3D over 2D, many two-dimensional games were able to find a home on Sega's system, including a number of RPGs that appealed to the Japanese market. Coupled with the continued porting of other AM2 franchises such as ''[[Daytona USA]]'' and ''[[Virtua Cop]]'' and original franchises including Sonic Team's ''[[NiGHTS Into Dreams]]'', the Saturn was able to find its niche. Their appeal only grew when Sega found the perfect advertising pitchman—[[Segata Sanshiro]]. Played by Hiroshi Fujioka, the character was a Judo master who would seek out those who weren't playing a Sega Saturn, attacking them until they did so. For the first time that decade, Sega of Japan proved themselves, with the number of Saturn titles sold actually outnumbering the number of PlayStation titles for an extended period of time, in spite of the PlayStation's larger user base.
 
 
 
In 1996, Tom Kalinske left Sega of America, replaced by [[Bernie Stolar]], who had previously worked with Sony and was involved in the PlayStation's success. Once in charge, Stolar prevented numerous titles from Japan's Saturn library to be released in the United States, the majority of those being RPG titles, believing they were too ingrained in the Japanese culture and would not appeal to American audiences. After looking over the state of the Saturn in the west, Stolar began to push Sega into looking towards the future, designing a new console to take an even bigger jump against the competition. In 1997, Stolar made an unexpected move, stating publicly that the future of Sega did not lie with the Saturn. Even though the Saturn was still doing well in Japan, Sega as a whole began the process to research and develop what would become Sega's last gaming console.
 
 
 
===Sega Dreamcast===
 
 
 
:''Main Article: [[Sega Dreamcast]]''
 
[[File:DCProto4.jpg|thumb|260px|Promotional imagery of a near-final Sega Dreamcast.]]
 
Though rumors of a new system had begun back in 1996, talk grew in 1997 even amid the backdrop of a failed merger between Sega and [[Bandai]]. Just as had been done before the Saturn was announced, Sega pursued two separate options—the Sega of America-led “BlackBelt,” and the Sega of Japan-led “Dural.” It was eventually decided to drop the “BlackBelt” and focus on the Japanese-developed system, which changed its codename to “Katana.” The goals of the system were simple: to be easy to develop, to be technologically superior, and to also regain the Sega brand trust in the United States, following the performance of the Mega CD, 32X, and Saturn.
 
 
 
Wanting to provide greater freedom with development, Sega partnered up with Microsoft, having a modified version of Windows CE be just one developing choice for games on the system, which would also allow easier PC ports for the platform. The system was officially announced by SOA's Bernie Stolar in May 1998, where it's final name was revealed to the world—the [[Sega Dreamcast]]. At the same time, some of the revolutionary details of the system were expanded upon for the gaming press, including the screened memory card known as the [[VMU|Virtual Memory System]], which would later be renamed to the “Virtual Memory Unit” because of the pre-existing use of the VMS acronym.
 
 
 
With the Dreamcast gearing up for its Japanese debut that December, one move Stolar pushed was that Sega as a whole discontinue support of the Saturn, including in Japan where it was still a viable gaming option. Though Japan was resistant to the idea, they did throw their all into the production and advertising of the Sega Dreamcast, including ending the Segata Sanshiro advertising campaign, having the character sacrifice himself to protect Sega and the Dreamcast in his final television commercial. However, even with ''[[Virtua Fighter 3tb]]'' as one of the launch titles, the system arrived with lackluster sales, as both the consumer market and third-party software companies did not see the need for the system to be released just yet, echoing Sega of Japan's initial resistance.
 
 
 
With some analysis fearful of Sega's position, it was feared that the American launch would be a repeat performance. Having the western launch not happen until September 9, 1999, however, it gave plenty of time for Sega to prepare themselves. Moving away from the advertising they had done in the Saturn years, once again promotion focused on the games, offering them up as not only hip but technologically superior to anything out there. The date of the release was able to become a marketing ploy, as well as the “It's Thinking” tagline, meant to also emphasize the built-in online capabilities of the system, the first home console to be ready for the Internet right out of the box. Even though Stolar was let go right before the release of the system, the huge publicity push behind the Dreamcast allowed it to be an instant success. With games such as Namco's ''[[Soul Calibur]]'', the continued legacy of Sega's sports division with ''[[NFL 2K]]'' and the return of the gaming icon that had allowed the Mega Drive to be a success in the first place, Sonic Team's ''[[Sonic Adventure]]'', the system ended up taking in $97 Million USD on its first day, taking into account not just system sales but peripherals and games. This amount set the record for the most amount of money spent on entertainment in a single day, beating out the previous record holder, ''[[wiki:Star Wars Episode I: The Phantom Menace|Star Wars Episode I: The Phantom Menace]]''.
 
 
 
[[File:Shenmue042.jpg|thumb|260px|Promotional art from ''Shenmue''.]]
 
However, the success was not to last. Even with a string of high quality arcade ports and new franchises being set up, the console was unable to completely overcome the Sony monolith. With no support from companies such as Square Enix and Electronic Arts, there was a gap in the system's library that was painfully noticeable. Newer game franchises such as ''[[Jet Set Radio]]'' and ''[[Space Channel 5]]'', though critically acclaimed, failed to catch on new Dreamcast adopters. Things were made noticeably worse when Sega invested millions into ''[[Shenmue]]'', a game designed from the start to have numerous sequels. Following the story of Ryo Hazuki, the game was a hybrid of different genre's with an incredible amount of attention to detail. The first game's budget alone was $47 Million USD, becoming the most expensive title produced in history. Headed by Yu Suzuki, Sega was willing to take the chance on the game, based on his numerous successes in the arcade market. However, while also a critic favorite, the title and it's eventual [[Shenmue II|sequel]] ended up becoming a cult classic and not the phenomenon they were hoping for, unable to earn back its production budget.
 
 
 
The financial woes of Sega became more and more apparent, the company having suffered a loss back during the Japanese release of the Dreamcast that simply added to the losses they had been suffering through the 32-bit era. In an attempt to stall their financial woes, the decision was made for the various development studios to separate from Sega. While they would still create material for the Dreamcast, they would become semi-autonomous, with Sega Enterprises as a whole becoming Sega.
 
 
 
Perhaps the final nail in the coffin for Sega's time in the hardware market was the impending release of the [[PlayStation 2]]. Though Sega briefly considered making the optical drive in the Dreamcast support DVD's, they opted instead to use the proprietary GD-ROM format, as it was a cheaper alternative. However, as the hype for the PlayStation 2 began, Sony started to make promises as to the technological capabilities of the system, promising the original PlayStation experience but far greater. Featuring a DVD-Drive, it was also poised to be the cheapest DVD player on the market. Soon, both consumers and developers across the globe started to back away from the Dreamcast, having a “wait and see” attitude, market speculation leaning once again to the electronics giant Sony.
 
 
 
Unable to stay afloat if they continued as they were, Sega announced on January 31, 2001 that they were ceasing production of the Dreamcast. Though games were still being developed for the console by the company, the writing was clearly on the wall, with hyped titles such as ''[[Phantasy Star Online]]'' and ''[[Sonic Adventure 2]]'' unable to save the system. With the PlayStation 2 becoming another instant hit and eventually one of the most successful consoles of all time, Sega bowed out of the hardware business, with ''[[NFL 2K2]]'' being the last title released in North America. While new titles were still being published in Europe and Japan, Sega made it clear they had no plans to create another home console. With ''[[Puyo Puyo Fever]]'' being the last First-Party title released in 2004, what Sega had hoped would save them financially simply turned into the last factor forcing them to return to the world of third party software development.
 
 
 
==Third Party Existence==
 
 
 
On March 21, 2001, what was once unthinkable was finally a reality. Announcing their focus on software only two months prior, the first Sega game to be released on a Nintendo console became available. Being a port of the Dreamcast title ''[[Chu Chu Rocket]]'' on the [[Game Boy Advance]], it was only the first of many titles to be released on hardware Sega once considered the competition. Any game early enough in development was moved from the Dreamcast to other hardware, and existing titles were quickly ported over to try and recoup the losses Sega had been incurring.
 
 
 
Only two days before, Isao Okawa, President of Sega Japan, passed away, only days after donating $695.7 million USD to the company in an effort to get it out of the red. Even still, the fiscal reports released in March 2002 still put the company below the line of profitability for the fourth straight year. Although not nearly as far in the red as it had been the year previous, it was still painfully obvious that even after dropping out of the hardware market, that company was still in serious financial trouble. Though Okawa had briefly talked with Microsoft about the possibility of having Sega merge with their gaming division before his death, nothing had come of those talks.
 
 
 
Also in early 2001, it was announced that Sega had plans to port [[Saturn]] games over to the original PlayStation. A GameWeek interview conducted with [[Charles Bellfield]] (Sega's VP of marketing) at Toy Fair 2001 in New York revealed that Sega would announce specific Saturn title ports in April to be released in summer 2001.<sup>[http://www.ign.com/articles/2001/02/15/segas-playstation-games-coming-this-summer]</sup> The Saturn ports would be priced at $19.99.<sup>[http://www.goodcowfilms.com/farm/games/news-archive/Interview%20-%20Sega%27s%20Charles%20Bellfield%20-%20Page%202.htm]</sup>
 
 
 
Two games were eventually released by Sega on the Playstation (''[[MiniMoni. Shakka to Tambourine! Dapyon!]]'' and ''[[Puyo Puyo Sun Ketteiban|Puyo Puyo Sun Ketteiban]]''). ''Puyo Puyo'' games were released on several platforms over the years so it's presence on the PlayStation isn't that unusual. The Sega releases for the PlayStation did not come out until 2002-2003.
 
 
 
Though brief discussions continued on with former interests Microsoft, Bandai and even Electronic Arts, on February 19, 2003, Sega announced to the world their impending merger with [[Sammy|Sammy Corp]]., an arcade rival who specialized in Pachinko machines. Only nine weeks after signing an agreement in principle with Sammy, gaming giant Namco made public their own intentions with Sega, making a counter offer to have Sega merge with them. Within a month, both talks fell through, with Sega withdrawing from the Sammy merger and delaying talks with Namco, which prompted that company to withdraw their offer, making it clear that it definitely was not the right time to merge if Sega did not know what it wanted to do with itself.
 
 
 
In August of that year, Sammy once again became interested in Sega, buying the holdings CSK still held with Sega. Once purchasing the 22 percent outstanding stock in the company, Sammy Chairman Hajime Satomi became the CEO of Sega Japan, announcing the company's main focus would be in the arcade sphere.
 
 
 
==Sega Sammy Holdings==
 
 
 
[[File:Segasammy.svg|thumb|260px|The Sega Sammy Group logo.]]
 
In the middle of 2004, Sammy bought a controlling interest in Sega, at the reported cost of $1.1 Billion USD. In the wake of this purchase, Sega Sammy Holdings was created, with Sega being a subsidiary of that company. Because of the company's restructuring, the development studios that had become semi-autonomous back in 2000 were remerged into Sega proper. One of those studios, [[Visual Concepts]], would soon be sold to Take-Two Interactive.
 
 
 
Previously, Sega operated only in the "Consumer Business", "Amusement Machines Business", and "Amusement Center Business". After the merger, the "Pachinko and Pachislot Machine Business" was added and provided nearly two thirds of the revenue, providing Sega with financial stability.
 
 
 
After the merger of two companies, Sega had immadiate growth in both sides of the world. In Japan, the arcade market experienced growth spearheaded by the multiplayer set-ups of ''[[Derby Owners Club]]'', kids card game business of ''[[Mushiking]]'' and internet features of ''[[Virtua Fighter 4]]''. In 2006, record revenue was recorded despite the dissapearence of an international market. In the console and handheld business more and more games aimed at the Japanese climbed the charts, spearheaded by the big budgeted ''[[Yakuza]]'' series.
 
On the Western side, acquisitions of [[Creative Assembly]] and [[Sports Interactive]] and other Western partnerships resulted into solid sales. The ''[[Sonic the Hedgehog]]'' franchise continues to be popular selling millions with each title, altough the critical reception has been very mixed.
 
 
 
Internationally, Sega was recognized as the world's no.1 arcade producer in 2010 by the Guiness World Records, having produced 530 arcade games, more than any other company in the world. This further cemented the legacy initiated by David Rosen in the 1960's.
 
 
 
In 2012, the enviorment of the business has changed dramatically, with the arcade market declining, packaged games no longer providing the core of the companies revenue both in Japan and in the West. Sega then entered a restructuring phase with the following measures: Focusing on core franchises in the packaged game market, with a drop of 140 SKU in 2007 to 49 SKU's in 2013. Sega closed and downsized several international branches, however as a trade strengthenedtheir digital business and made further large acquisitions in the Western and Japanese market.
 
 
 
In the mobile business, Sega made first strides when the iPhone was released with a ''[[Super Monkey Ball]]'' app which climbed the No.1 spot in the charts. In the emerging and growing F2P market Sega made it's first strides with ''[[Kingdom Conquest]]'' in 2010. Another key strategy of the F2P market was the development and release of the PC Online game, ''[[Phantasy Star Online 2]]''. The game became the most successfull in the franchise since it's introduction in 1987. In terms of aquisitions, Sega made a purchase with [[Relic Entertainment]] resembling it's purchase with Creative Assembly in 2005. The major Japanese acquistion came in the form of Index Corporation, which also contained [[Atlus]], a publisher and developer of niche IP rather than the purchased million seller IP of before. Index was split into with it's video gaming business being established as Atlus.
 
 
 
In light of these recent changes, Sega Sammy decided to consolidate and restructure their four operating segments. The Pachinko and Pachislot segment by Sammy remained, providing the main financial strengh of the group. The "Entertainment Contents Business" contains all of Sega's businesses. The main financial strengh of the segment is the new Sega Games, the successor of Sega Corporation, which ecompasses their mobile, PC and console game´businesses. This company is headed by the son of Sega Sammy CEO, Haruki Satomi. Haruki Satomi, made his first strides as VP of digital business at Sega of America, as well as heading mobile worldwide since 2012. The new "Resorts" business venture from Sega Sammy, utilizies Sega's theme park assets to promote it.
 
 
 
Currently, Sega is aiming to archive the profits they had in 2006 consistently, with the digital game business, centered around mobile and PC Online games, being they key to archiving it. However the company has re-assured that the commitment to their former core market, being console and arcade games, has not been diminished.
 
  
 
==External links==
 
==External links==
Line 190: Line 96:
  
 
==References==
 
==References==
 +
{{NECRetro}}
 
<references />
 
<references />
  
 
{{clear}}
 
{{clear}}
 +
{{EarlySega}}
 
{{SoJ}}
 
{{SoJ}}
{{SoA}}
+
{{SegaOverseas}}
{{SoE}}
 
 
[[Category:Sega companies]]
 
[[Category:Sega companies]]
 
[[Category:Sega]]
 
[[Category:Sega]]

Revision as of 16:08, 20 August 2017

Sega (セガ) is an international digital entertainment and media company currently headquartered in Ota, Tokyo, Japan. Founded in the mid-1940s, Sega experienced rapid growth in the 1980s and 1990s to become one of the dominant forces in its field. It remains to this day a major player in the worldwide video game industry, covering arcade, console, handheld, mobile and PC markets.

Sega Enterprises was the first incarnation of Sega, and it became headquartered in Tokyo in 1984, when it was bought by Japanese CSK. Sega Enterprises became Sega Corporation in July of 2000. Since 2004, Sega operates under a collective holding company known as Sega Sammy Holdings, formed after a merger between what was then Sega Corporation and Sammy Corporation. In April 2015 the Sega side of the business was sub-divided into three; Sega Games, handling the video game consumer business, Sega Interactive, which deals with the development and production of arcade games, and Sega Entertainment, responsible for the running of commercial venues[1]. Sega's operations are also referred to with regional subsidiaries, which are Sega of America and Sega Europe both founded around the mid eighties.

In practice, all divisions and groups within the company are generally referred to and known collectively as "Sega".

History

Main article: History of Sega.

Business interests

Amusement machines

UFO Catcher 9, one of the latest in the line of lucrative UFO Catcher machines.

For most of its existence, Sega has been catering for the amusement industry, and alongside Namco and Taito, was seen as one of the major players in the Japanese market during the second half of the 20th century. While the sector has declined from its heights in the 1980s and early 1990s, Sega remains a prolific manufacturer of arcade machines, placing a specific emphasis on its home market of Japan.

The bulk of Sega's amusement machine business involves the creation of titles that are not easily replicated at home ranging from 1985 Hang-On to recent games like Maimai. For Japanese users, Sega has placed a high value on the use of the internet, allowing players to compete between arcade venues and keep track of their status through apps for mobile devices or physical cards.

Sega's heritedge was built on gambling machines, however systems dealing with real money can be subject to heavy regulations. As a result, since the mid-1980s Sega has instead focused on the concept of "medal" games, often offering the similar risk versus reward gameplay seen in the gambling sector, but which which accept and distribute currency specific to a venue, with no cash value outside of the premises.

While the arcade industry has declined significantly in Western markets since its peak in the 1980s, Sega continues operate amusement businesses in the US and Europe, distributing products by third-party manufacturers and maintaining (and refurbishing) the company's older back-catelogue of racing and shooting games. Popular releases such as Daytona USA and Sega Rally Championship, despite being more than two decades old, are still often seen in active service and are staples of what little remains of the arcade scene. Likewise, these branches continue to oversee the development of new releases targeting a Western audience.

In addition to creating arcade video games, Sega has ventured into other areas of the amusement business, from change machines to motion simulators. Since 1985 Sega has been producing UFO Catcher machines; popular "crane" games which have been a permanent fixture of Japanese game centres since the late 1980s. Sega have a significant stake in this market, for as well as constructing the cabinets themselves, the company also sources and distributes the prizes.

The company also produces "ride-on" machines for younger children, although few of these models have ever left Japan.

Video games

Title screen of Sonic the Hedgehog, featuring the company's mascot.

Sega has been directly involved in the home "consumer" video game market since 1983, doubling up in the first eighteen years as a hardware manufacturer. During this time the company has created a number of lucrative franchises which are still actively maintained to this day, most notably the Sonic the Hedgehog series whose eponymous lead character has become a mascot for the company.

Sega supports home video game consoles and handhelds from platform holders Nintendo, Sony and Microsoft. It emerged itself with the PC market with SegaSoft and Sega PC in the earlier years, but more recently supports it by Western subsidiaries like The Creative Assembly, Sports Interactive and Relic Entertainment. In 2000, Sega started it's mobile phone development with Sonic Cafe and that market became the companies primary focus in recent years. Titles such as Chain Chronicle and Puyo Puyo!! Quest are among the best performing titles.[2]

The company has a number of internal development studios based in Japan, with resources often shared between consumer and arcade projects. Local development in Sega of America and Sega Europe are also part of the operation. Unlike Sega of Japan, they exclusively work with external developers either by contract or owning the developer as a subsidiary.

With the purchasing of Index Holdings in the summer of 2013, Atlus now resides as part of the Sega-Sammy family and also share resouces with Sega's Japanese and American headquarters.

Currently popular Sega franchises are Sonic the Hedgehog, Phantasy Star Online, Yakuza (Ryu ga Gotoku), Hatsune Miku: Project DIVA and Puyo Puyo series.

Entertainment venues

Tokyo Joypolis, the first indoor theme park opened by Sega.

In addition to producing amusement machines, Sega owns a large portfolio of properties in which consumers can access them. Sega opened the first of its many Japanese "game centers" in the late 1960s, likely peaking at 870 sites across Japan in 1999[3], including an array of Joypolis indoor amusement parts, Sega World and Club Sega amusement arcades, and a number of spa and leisure facilities. It also operates the Orbi indoor nature attraction, developed in conjunction with BBC Worldwide.

In addition, Sega owns and operates Sega Republic in the UAE and a small number of venues in Taiwan and China. Cashflow problems, its merger with Sammy and subsequent restructuring in the mid-2000s led to Sega parting with many of its overseas entertainment venues, including the GameWorks chain in the US, Sega Worlds stationed in Australia and South Korea, and its numerous arcades spread across Europe, most notably the Joypolis-inspired SegaWorld London in 1999.

The existence of dedicated venues has allowed Sega to create much larger projects over the years, including indoor rides and movie theaters. They have also proved convenient spots for location testing of arcade machines.

Consumer products

Throughout its history, Sega has occasionally ventured into the toy and consumer electronics markets. Of particular note is its takeover of Yonezawa Toys in 1994, leading to the creation of what would eventually become known as Sega Toys in 1998. As the largest post-War toy manufacturer in Japan, Yonezawa's incoporation into the Sega family meant that, for a time, Sega was a market leader in the Japanese toy market, with strong links to Hasbro in the United States. However, while Sega Toys continues to exist, it is currently managed as a separate entity within Sega Sammy Holdings.

Sega has also produced karaoke equipment (Prologue 21), a digital camera (Digio SJ-1), a television (Sega-Vision), PDAs (IR 7000 Communicator) and has published films on VHS cassette. It has created films and cartoon shows with partners such as TMS Entertainment, and its properties have been used to create books, albums, board games and audiobooks.

Sega's properties have also been turned into theater productions, with at one point bi-annual shows centred around Sakura Taisen and more recently, Phantasy Star Online 2: On Stage.

Notable products

Key figures

Gallery

External links

References

Necretro-round.svg
NEC Retro has more information related to Sega
Early Sega
45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84
Service Games Gulf+Western
Service Games, Hawaii & Nevada & Japan Nihon Goraku Bussan & Nihon Kikai Seizou Sega Enterprises, Inc.
Sega Enterprises, Ltd. Sega Ltd. & Gremlin Sega Ltd.


Timeline of Sega of Japan research and development divisions








83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
20
21
22















































































































































































































Overseas Sega companies, studios and subsidiaries
84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23
CSK Sega Sammy Holdings
Sega of America
Sega Technical Institute
Sega Away Team
Sega Europe
Sega France Sega France
Sega Consumer Products S.A Sega Spain
Sega Vertriebsgesellschaft Sega Austria
Sega Interactive
Sega Deutschland Sega Germany
Sega Amusements Taiwan Sega Taiwan
Sega Denmark
Sega Belgium
Sega Netherlands
Sega Multimedia Studio
Sega Midwest Studio
Sega Amusements USA
Deith Leisure Sega Amusements Europe Sega Amusements International
Sega Total Solutions
Sega Prize Europe
Sega Music Group
SegaSoft
Sega Entertainment
Hyundai-Sega Entertainment
Sega Enterprises Israel
No Cliche
Sega of America Dreamcast
Sonic Team USA Sega Studios USA
Visual Concepts
Sega.com
Sega.com Asia
Sega of China
Sega Mobile Sega Networks Inc.
Sega Publishing Korea
The Creative Assembly
Sega (China) Network Technology Co., Ltd
Sega Benelux
Sega Studios San Francisco
Sports Interactive
Sega Studios Australia
Three Rings Design
Relic Entertainment
Atlus USA
Demiurge Studios
Go Game
Sonic Studio
Amplitude Studios
Sonic Team USA